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119-s-308119th CongressWALLET

Graduate Opportunity and Affordable Loans Act

Sponsored By: Senator Tuberville, Tommy [R-AL]

Introduced

Summary

Limit federal borrowing for graduate and professional students. This bill would end graduate and professional Direct PLUS Loans and impose new annual and aggregate caps on Direct Unsubsidized Stafford loans for those students.

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  • Graduate students (non‑professional) could borrow up to $20,500 per academic year and up to $65,000 in total in Direct Unsubsidized Stafford loans, in addition to any undergraduate borrowing.
  • Professional students could borrow up to $40,500 per academic year and up to $130,000 in total in Direct Unsubsidized Stafford loans, in addition to any undergraduate borrowing.
  • A phase‑out preserves prior loan limits for certain borrowers who received disbursements in the 2024-2025 award year and who do not graduate before the 2025-2026 award year.
  • Institutions of higher education would have to notify prospective and enrolled graduate and professional students that Direct PLUS Loans end June 30, 2025, and may set lower or prorated loan limits for programs beginning July 1, 2025.

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Bill Overview

Analyzed Economic Effects

3 provisions identified: 0 benefits, 2 costs, 1 mixed.

New graduate loan limits

If enacted, graduate students could borrow up to $20,500 per academic year. Professional students could borrow up to $40,500 per academic year. These limits would begin July 1, 2025. Total federal graduate borrowing would be capped at $65,000 for graduate (non‑professional) students and $130,000 for professional students, in addition to undergraduate loans. Borrowers who got a disbursement after June 30, 2024 and before July 1, 2025 and who did not graduate before the 2025–2026 award year may be allowed the older limits for 2025–2026. The bill would use the 2022–2023 IPEDS glossary to define graduate and professional students.

Graduate PLUS loans end

If enacted, the bill would bar Federal Direct PLUS Loans for graduate and professional students for any program that begins on or after July 1, 2025. Institutions would have to notify prospective and enrolled graduate and professional students, within 30 days after enactment, that PLUS loans end on June 30, 2025. Removing PLUS loans would cut an available financing option and could raise out‑of‑pocket costs for affected students.

Schools can limit loan amounts

If enacted, schools could prorate or limit unsubsidized Stafford loan amounts for programs that start on or after July 1, 2025. The school's financial aid administrator would decide whether to apply a proration or limit. Any proration or limit must apply the same way to all students entering that program. This could lower how much you can borrow or reduce future debt depending on the institution's choice.

Sponsors & CoSponsors

Sponsor

Tuberville, Tommy [R-AL]

AL • R

Cosponsors

  • Sen. Cassidy, Bill [R-LA]

    LA • R

    Sponsored 1/29/2025

Roll Call Votes

No roll call votes available for this bill.

View on Congress.gov
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