Alabama Democrat Proposes Bill to Reverse Graduate Loan Restrictions

Representative Shomari Figures, a Democrat from Alabama, has introduced a new bill aimed at overturning a significant student loan policy change implemented during President Donald Trump’s administration. The measure, called the Restoring Opportunity for Advanced Education Act, seeks to restore access to Grad PLUS loans and eliminate federal borrowing caps for graduate and professional students.

Reversing Changes in Trump’s Loan Policy

The Trump administration’s loan restrictions, effective from July 1, set borrowing caps, ending the Grad PLUS program for new borrowers. The Department of Education introduced these limits to curb excessive student debt and encourage colleges to manage tuition costs better.

Impacts on Graduate Education

Critics argue the new rules make higher education inaccessible to middle-income students who cannot afford high out-of-pocket expenses or qualify for private loans. Graduate programs, such as medicine and law, often have costs exceeding six figures.

Understanding the Changes

The One Big Beautiful Bill Act dramatically altered federal student aid programs, eliminating Grad PLUS loans, which allowed students to borrow up to the full cost of attendance. New limits introduced include loans capped at $20,500 annually and $100,000 total for graduate students, and $50,000 annually and $200,000 total for professional students. A lifetime cap of $257,500 also applies across federal loans.

Under Secretary of Education Nicholas Kent noted, “This final rule will help ensure students can access higher education without racking up excessive loan debt, offer repayment options that better serve borrowers, and force institutions to reduce costs.”

Costs of Professional Degrees

Programs like dentistry, veterinary medicine, and elite MBAs can range from $200,000 to $300,000, with dental degrees exceeding $500,000 in some cases.

Proposed Legislative Changes

Figures’ proposal aims to remove annual and lifetime borrowing caps and reinstate the Grad PLUS loan program. Figures stated that current borrowing limits restrict access, impacting students unable to pay upfront for pricey graduate education.

“Education provides a pathway to extraordinary career opportunities and should be open to all Americans,” Figures emphasized.

Concerns and Impacts

Experts warn that strict limits could drive students to seek private loans, which offer less protection than federal options. Research indicates around 370,000 borrowers may need alternative financing due to the federal caps. Repealing these limits could widen access but may reduce the incentive for universities to control tuition hikes.

Legislative Challenges

The bill faces hurdles in a Republican-controlled Congress, which originally enacted the limits. Despite Republican opposition, the debate over federal student loan policies is expected to persist.

Kevin Thompson, CEO of 9i Capital Group, remarked, “There is little chance they simply reverse something they just signed into law.”