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For twenty years, the federal Grad PLUS loan served as a financial safety net, allowing graduate students to borrow up to the full cost of attendance to pursue their dreams. However, that era is coming to a close. With the passage of the “One Big Beautiful Bill Act” (OBBBA), the federal government is moving away from unlimited lending toward a system emphasizing fewer loan repayment options and loan caps.
As these changes loom for the 2026–27 academic year, ScholarshipOwl surveyed over 22,000 students to gauge how these limits will reshape their futures. The results are a sobering look at a generation of students who may be forced to choose between their career aspirations and their financial survival.
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Decoding the “One Big Beautiful Bill Act”
Signed into law on July 4, 2025, the OBBBA introduces strict limits on federal borrowing to curb rising tuition and national debt. While undergraduate limits remain stable, the graduate landscape is fundamentally changing:
Grad PLUS Loans Are Phasing Out
Grad PLUS Loans will no longer be available to new borrowers starting July 1, 2026. New graduate students will still be able to borrow federal unsubsidized student loans; however, Grad PLUS Loans will not be an option. Existing graduate students will have access to both Grad PLUS Loans and unsubsidized federal student loans until June 30, 2028.
Loan Caps for “Standard” Graduate Programs
For most master’s and doctoral degrees, federal borrowing is now capped at $20,500 annually and $100,000 lifetime, not including undergraduate student loans.
The “Professional” Distinction
The Department of Education has designated a select group of “professional” programs—including Medicine (MD/DO), Law (JD), and Dentistry (DDS/DMD)—for higher caps of $50,000 annually and $200,000 lifetime, not including undergraduate student loans. While these caps are higher, the costs of these programs often exceed these higher caps, which will necessitate private loan borrowing for many of these students.
The Total Ceiling
A new total lifetime limit of $257,500 now applies to all combined undergraduate and graduate federal borrowing.
The “Professional Degree” Controversy
The Trump Administration’s recent rulemaking has sparked intense debate. By excluding critical fields like Nursing, Physical Therapy, and Mental Health Counseling from the “professional” designation, the Department has effectively categorized these high-cost, high-impact careers as “standard” graduate degrees. This means a student pursuing a Master of Science in Nursing (MSN) or a Doctorate in Physical Therapy (DPT) will face the same $20,500 annual limit as a student in a lower-cost humanities program, despite the significantly higher tuition typical of clinical healthcare training.
Some of the programs of study expected to be designated as “standard” degrees include:
- Accounting
- Architecture
- Audiology
- Business Administration
- Counseling (School Counselor, Marriage & Family Therapist, etc.)
- Education
- Engineering
- Nursing
- Occupational Therapy
- Physical Therapy
- Physician Assistant
- Public Health
- Social Work
- Speech Pathology
Due to the high cost of many of these programs of study, there is concern that fewer students will be able to pursue graduate education in these fields. Given our aging population, the declining birthrate, and the shortage of healthcare professionals, the possibility that these loan caps will prevent students from pursuing graduate degrees in healthcare is particularly concerning.
Who Participated in the Survey?
Between December 03, 2025 and January 18, 2026, ScholarshipOwl surveyed 22,646 high school and college students on the ScholarshipOwl scholarship platform to find out more about how students pursuing a master’s degree or a doctorate will be impacted by the “One Big Beautiful Bill Act.”
Among the respondents, 60% were female, 39% were male, and 1% identified themselves as a different gender identity or preferred not to respond to the question. Half (50%) were Caucasian, 19% were Black, 18% were Hispanic/Latino, 6% were Asian/Pacific Islander, 2% were American Indian/Native American and 6% selected “other” or preferred not to respond to the question.
Over half (57%) of the respondents were high school students, with the overwhelming majority high school seniors; nearly one-third (32%) were college undergraduate students, primarily college freshmen and college sophomores; 7% were graduate students and 4% identified themselves as adult/non-traditional students.
Question 1: How will the new federal student loan caps established by the “One Big Beautiful Bill Act” impact your academic or career plans?
Amongst the respondents, nearly half (48%) said the legislation will have significant impact on their grad school plans, stating it is unlikely they would be able to afford grad school, and that they may need to change their plans. More than one-third (36%) said that the legislation may impact them, but they aren’t sure if they plan to go to grad school. Less than one-fifth (12%) said that the legislation is unlikely to impact them, as they expect their grad school costs will fall under the loan cap. Less than one-fifth said that the legislation won’t impact them because they either aren’t planning to pursue education beyond a bachelor’s degree (9%) or that they are currently enrolled in a graduate education program (2%) so the legislation won’t apply to them.
Question 2: Are you considering one day obtaining a master’s degree OR a doctoral degree in any of the following fields? Select all that apply.
The listed fields of study are currently expected to fall under the “standard” loan caps, as the Trump Administration deems them to not be considered a “professional program” that would enable students to borrow larger amounts for their education.
Nearly three-quarters (71%) of respondents said that they are considering pursuing graduate education in one or more of the listed fields. More than one-third (37%) are considering earning a graduate degree in a healthcare field, and nearly one-fifth (19%) are interested in a graduate degree in a business / finance field. The remaining respondents are interested in a graduate degree in engineering (13%), education (9%) or architecture (3%). Here is the full breakdown:
Healthcare Fields
- Nursing: 15%
- Counseling: 7%
- Public Health: 7%
- Social Work: 6%
- Physical Therapy: 5%
- Physician Assistant: 4%
- Occupational Therapy: 3%
- Speech Pathology: 1%
- Audiology: Less than 1%
Business / Finance Fields
- Business Administration: 17%
- Accounting: 5%
Other
- Architecture: 3%
- Education: 9%
- Engineering: 13
- Not interested in grad school in the listed fields: 29%
Question 3: Which of the following outcomes do you think are most likely for the above programs deemed as “non-professional,” with federal loans capped at an aggregate maximum of $100,000?
Most respondents expressed multiple concerns for what might happen to these programs, as well as the students interested in pursuing them.
More than two-thirds (68%) predicted that fewer people will enter the listed professions.
Nearly half (45%) said that students will prioritize scholarships to help pay for grad school, while an even greater number (48%) said that students interested in these careers will turn to private loans to cover costs beyond the federal student loan cap. More than half (52%) said that students will delay attending grad school to work and save to help cover costs.
Respondents also were concerned about the impact on colleges, with nearly half (43%) saying that colleges may cut these programs due to low enrollment caused by the loan caps, and nearly one-fifth (18%) said that they think that some colleges will close entirely as a result.
About one-quarter of students (28%) are hoping for some positive outcomes, with 18% saying that some colleges may lower the cost of these programs to attract students, and 10% saying that employers may help pick up the slack and contribute to paying for their employees’ education to help them obtain an advanced degree.
The Looming Talent Gap
The survey results highlight a disconnect between federal policy and student reality. With 71% of respondents considering degrees in fields now subject to the lower “standard” cap, the “One Big Beautiful Bill Act” could inadvertently create a national workforce crisis.
Key Takeaways & Outcomes
Healthcare in Jeopardy
37% of students surveyed are eyeing graduate healthcare roles. If federal loans cover only a fraction of their tuition, we risk a “brain drain” in nursing and therapy—fields already reeling from historic shortages.
The Shift to Private Debt
48% of students expect to turn to private loans. Unlike federal loans, private lending lacks income-driven repayment safety nets and often requires a co-signer, potentially shutting out first-generation and low-income students.
Scholarships as a “Must-Have” Strategy
Nearly half (45%) of respondents stated they will now prioritize scholarships as their primary method to bridge the funding gap. With federal limits effectively “starving” high-cost programs, students are shifting their focus away from loans and toward merit- and need-based aid to ensure they can finish their degrees without insurmountable debt.
Institutional Instability
With 43% of students predicting program cuts, smaller colleges that rely on graduate enrollment may face a “death spiral” as students flee to more affordable or better-funded institutions.
A New “Gap Year” Culture
52% of students plan to delay grad school to save money. While fiscally responsible, this delay slows the entry of new professionals into the economy at a time when the “Silver Tsunami” of retiring Baby Boomers requires an immediate influx of skilled labor.
Additionally, it is anticipated that students that initially plan on taking a “gap year” might end up not pursuing their graduate studies at all due to work and family responsibilities that pull them further away from their education and career aspirations.
A Call for Strategic Planning
The “One Big Beautiful Bill Act” was designed to bring fiscal discipline to higher education, but our survey shows it may be bringing a “freeze” to student ambitions. As the July 2026 deadline approaches, the burden of funding is shifting from the government back to the individual and the private sector.
For students, the message is clear: the era of “borrowing whatever it takes” is over. Success in the OBBBA era will require a multi-pronged strategy: aggressive scholarship hunting, employer tuition assistance, and a careful evaluation of the ROI for every credit hour.
At ScholarshipOwl, we remain committed to helping students bridge this new funding gap. The rules of the game have changed, but the goal remains the same: an education that empowers your future without shackling your finances. Whether you are a high school student, college undergrad or graduate school student, we have plenty of scholarships available for you on the ScholarshipOwl platform! Start your free 7 day trial at www.ScholarshipOwl.com!
