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New student loan caps still coming after Senate fails to block them
USA Today • • nation
Key Points:
- Senate Republicans rejected a Democratic-led effort to repeal Trump-era regulations that impose new federal student loan caps for graduate students, with the vote falling along party lines.
- The borrowing limits, set to take effect on July 1, were part of the "One Big, Beautiful Bill" Act and finalized by the Department of Education, marking significant changes to the college financial aid system.
- Some GOP lawmakers, including Sen. Bill Cassidy, expressed concerns about how the caps, particularly excluding graduate nursing students from certain borrowing limits, might affect healthcare workforce shortages.
- The legislation would have prevented the elimination of the Grad PLUS lending program and the new restrictions on Parent PLUS loans, while undergraduate loans remain largely unchanged.
- Democrats, led by Sen. Jeff Merkley, argued the caps would push borrowers toward private lenders without reducing tuition costs, a point contested by Republicans who believe the rules could lower educational expenses.
