Bill · S. 308· Senate(119-S-308)
Graduate Opportunity and Affordable Loans Act
- Introduced
- 1/29/2025
- Last activity
- 1/29/2025 — Read twice and referred to the Committee on Health, Education, Labor, and Pensions.
- Sponsored by
- Tommy Tuberville
- Cosponsors
- - 1 - 0
- Introduced
- In Committee
What this bill would do
This bill, known as the "Graduate Opportunity and Affordable Loans Act," seeks to modify how graduate and professional students access federal loans. It establishes new annual and aggregate limits for Federal Direct Unsubsidized Stafford loans effective July 1, 2025. Specifically, it sets yearly borrowing caps for both graduate and professional students. The legislation also mandates the termination of Federal Direct PLUS Loans for these student groups. Additionally, it allows institutions to set their own loan limits for certain students.
Yes
Does this reduce what the federal government spends?+4
The bill reduces federal spending by terminating the Federal Direct PLUS Loan program for graduate and professional students.
The opposite· 3 of 4
Would students be better off under this?-6
The legislation limits total borrowing amounts and terminates the Federal Direct PLUS Loan program for graduate and professional students.
Does this make college cost less?-6
The bill reduces overall loan accessibility and eliminates the Federal Direct PLUS Loan option for graduate and professional students.
Would people in their twenties and thirties be better off under this?-5
The bill imposes stricter borrowing limits and eliminates certain loan types for graduate and professional students.
Who it would affect, and how
Potential Positive Impacts for People
-
Clearer Loan Limits for Students: The bill establishes specific annual and aggregate limits for Federal Direct Unsubsidized Stafford loans starting July 1, 2025, providing specific borrowing caps for graduate and professional students (Section 2, paragraph 4).
-
Protection for Current Students: A phase-out provision allows eligible students who received a loan disbursement for the 2024-2025 award year to access the older, previous loan limits for the 2025-2026 award year, provided they have not yet graduated (Section 2, paragraph 4(C)).
Potential Negative Impacts for People
-
Reduced Loan Access: The bill terminates the authority to provide Federal Direct PLUS Loans to graduate and professional students for any period of instruction beginning on or after July 1, 2025 (Section 2, paragraph 5(A)).
-
New Borrowing Caps: Graduate students (who are not professional students) will be limited to a maximum of $20,500 per academic year and a $65,000 aggregate limit (Section 2, paragraph 4(A)(i) and 4(B)(i)).
-
Professional Student Caps: Professional students will be limited to a maximum of $40,500 per academic year and a $130,000 aggregate limit (Section 2, paragraph 4(A)(ii) and 4(B)(ii)).
-
Institutional Control Over Loan Amounts: Financial aid administrators at eligible institutions may have the discretion to prorate or limit the amount of a loan a student can borrow for an academic year (Section 2, paragraph 6).
Groups and Interests Ranking
Every group the model scored this bill for, from -10 to +10. Hover a score for the reason it gave.
- Demographic And Interest Groups
- Good For Students-6Good For Young Adults-5Good For Low Income Households-4
- Education And Technology
- Improves College Affordability-6
- Economy And Finance
- Reduces Government Spending+4
- 1/29/2025
- Read twice and referred to the Committee on Health, Education, Labor, and Pensions.
- 1 Cosponsor added.
- Introduced in Senate
Bill CassidyRepublican · Louisiana