Torres forum tackles Big Beautiful Bill’s graduate loan changes

Ahead of the implementation of new federal student loan limits, New York leaders in higher education and professional associations joined U.S. Rep. Ritchie Torres for a roundtable on Feb. 18, warning that the policy shift could deepen workforce shortages and roll back equitable access to fields that depend on graduate training.

Under the current system, graduate students may borrow up to $20,500 per year in federal unsubsidized loans. If that does not cover the full cost of attendance, they can turn to Grad PLUS loans to finance the remaining balance. Unlike private loans, Grad PLUS loans require only a basic credit check and carry federal protections, including income-driven repayment options and eligibility for Public Service Loan Forgiveness.

In July, Grad PLUS loans will be eliminated entirely. For graduate students, borrowing will be limited to a $20,500 annual cap, with a $100,000 lifetime limit. Certain designated “professional degree” programs — generally those required for licensed careers such as medicine and dentistry — will be capped at $50,000 per year, with a $200,000 lifetime limit. “We all know that federal loans are the keys that unlock access to higher education and the loss of access to these loans will mean the loss of access to education,” Torres said. “This threatens to transform education from a right to a privilege reserved only for those who can afford it, which to me represents a profound betrayal of the American promise.”

The congressman called the caps “draconian,” underscoring that they could restrict access to fields that already face workforce gaps. According to the U.S. Health Resources and Services Administration, roughly 137 million Americans live in federally designated mental health professional shortage areas. More than 90 million live in areas lacking sufficient primary care providers, and more than 60 million live in areas with dental care shortages.

The need for registered nurses is also expected to increase in the coming decade as the population ages and demand for health care services expands.

At the roundtable, attendees described how graduate programs feed directly into those fields.

Debra McPhee, dean of Fordham’s Graduate School of Social Service, said nearly all of her students rely on federal loans, and most depend on Grad PLUS to close the gap between tuition and living expenses. Without it, she said plainly, “we will not have access to education period.”

“The down river effect is going to be really significant for the society,” McPhee added, noting that social workers serve in hospitals, schools, courts and child welfare agencies.

Nursing leaders echoed that concern, noting that advanced degrees are required not only for independent clinical practice but also to train the next generation of nurses. Valerie Burger, a registered nurse representing the Oncology Nursing Society, said programs are already constrained.

“We just don’t have the faculty to sustain the demands for students to go into the profession,” she said, noting some programs have already limited enrollment capacity because of the shortage.

Participants also questioned how the federal government defines “professional degree.” While medicine and dentistry clearly qualify for the higher borrowing cap, leaders said other licensed fields — including social work, advanced nursing, public health and architecture — may not fit neatly within the designation, potentially leaving their students subject to the lower $20,500 annual cap.

While the new limits would not eliminate borrowing, argued Pace University Assistant Vice President for Public Affairs Sean Coughlin, they may push students toward private lenders, which often carry higher interest rates and fewer repayment protections.

To counter the changes, Torres is sponsoring H.R. 6677, the Professional Degree Access Restoration Act, legislation that would reverse the new caps and restore broader federal loan access for graduate and professional students.

Alternative proposals introduced by other officials would broaden the range of programs eligible for higher borrowing but leave the overall limits intact. That approach, Torres argued, “treats the symptom rather than addressing the broader problem of restricting graduate lending.”