Graduate students across the country, including many at Seton Hall, may soon lose access to the federal loan program that has long made advanced degrees attainable.
A new Trump administration proposal, part of the One Big Beautiful Bill Act (OBBBA), would cap federal borrowing for graduate programs and eliminate Grad PLUS loans, which have historically allowed students to borrow up to the full cost of attendance. The change has left many students uncertain about whether they can afford to continue their education.
The legislation introduces a distinction between “professional” and “nonprofessional” graduate degrees, determining annual borrowing limits based on program classification. Effective July 2026, students in designated professional programs, such as law, medicine, dentistry, theology and more, will qualify for a borrowing limit of $50,000 annually, with a $200,000 aggregate limit. For students enrolled in “non-professional” programs, the federal cap will be limited to $20,500 per year, with a lifetime maximum of $100,000. These programs include nursing, social work, accounting, education and more.
Kristin Miller, an adjunct professor in SHU’s social work department, expressed concerns about the potential impact that loan limits may have on current and future social work students.
“When you restrict how much federal aid students can access, it immediately becomes a barrier—especially since many graduate programs cost far more than the new limits,” she said. “That would push students toward private loans, which require strong credit and don’t qualify for public loan forgiveness. For first-generation, low-income, and students of color, that combination makes graduate education much harder to access.”
Miller explained that most social work careers require an advanced degree.
“There is value within obtaining a bachelor’s degree in social work. There are careers where a bachelor’s degree is sufficient and leads to a successful and fulfilling career,” she said. “At the same time, there are many social work jobs that require an advanced degree; for people who want to work as supervisors, school social workers, or even as therapists— master’s degrees are required.”
SHU students echoed these concerns.
Haylee Peguero, a junior biology major planning to pursue a doctorate in physical therapy—classified as ‘nonprofessional’ under the OBBBA framework—said the proposal has disrupted her plans.
“My plan has always been to finish my undergraduate degree and immediately move on to pursuing my graduate degree afterwards,” Peguero said. “The new loan plan has made me feel more hesitant.”
As a member of the Educational Opportunity Program (EOP) at SHU and a first-generation student from a single-parent household, Peguero said she “always knew” she’d rely on federal loans to attend graduate school.
“Now knowing that there’s a possibility that I won’t be able to get what I need just adds more to my plate,” she said.
Peguero’s experience is far from unique. Across campus, SHU students are reassessing their futures.
Nia Brathwaite, a sophomore accounting major, said that instead of entering a master’s program immediately, she’s considering a CPA pathway program “where the company covers my exam prep and fees, which can save me close to thousands.”
“I’m only currently pursuing a bachelor’s degree because loans and grants have made it possible for me,” she said. “These restrictions when it comes to student loans feel like a double-edged sword; they worry me and encourage me to work harder at the same time.”
Current graduate students are already feeling the impact as well.
Matthew Schoner, a first-year student in SHU’s occupational therapy master’s program, said he believes the loan limits will discourage students from public health careers.
“Occupational therapists work with individuals who have social, mental, and physical disabilities that can make performing daily tasks more challenging,” Schoner said. “If fewer people are likely to pursue a career in OT, then we will most likely see more limitations to the services that the general public can access.”
Beyond limiting who enters the field, Schoner said the policy could create additional pressures on those already working in public health.
“I think that there’s also the possibility for this to produce a trickle effect where people currently working in public health will be more overwhelmed,” he said. “There will always be a demand for these services, but now there may be less people able to help.”
Alexis Nutile, a first-year master’s student in the education and speech-language pathology dual-degree program, shared similar concerns about public service careers.
“Fewer people may decide to go into education even though it’s an important field,” she said, adding that the new classifications feel biased against women. “A lot of the fields that are now considered non-professional are women dominated professions and it feels very targeted and discouraging.”
Nutile also noted that many of the affected fields, such as education, are not financially sustainable for students taking on significant debt.
“Teachers are already underpaid,” Nutile said. “We have to invest a lot of money into our undergrad careers without receiving a lot back, financially."
Together, these students and faculty express a shared reality: the OBBBA’s loan caps not only limit borrowing but reshape who can pursue graduate education and which fields remain accessible.
Angela Alvarez is a writer for The Setonian’s News section. She can be reached at angela.alvarez@student.shu.edu.
