President Donald Trump on 4 July signed the One Big Beautiful Bill Act, a sweeping tax-and-spending measure that overhauls federal student-loan programs. The law abolishes the Grad PLUS program and imposes strict borrowing ceilings: $20,500 a year and $100,000 in total for most graduate students, and $50,000 a year with a $200,000 lifetime cap for professional programs such as medicine and law. Undergraduate borrowing is limited to $20,000 annually and $75,000 overall. The changes, which begin phasing in during the summer of 2026, come alongside an increase in the tax on large university endowments to 8% from 1.4%. Higher-education groups warn the caps will not cover the full cost of many medical or law degrees, forcing students—particularly those from lower-income backgrounds—to seek pricier private loans or abandon advanced study. The Association of American Medical Colleges said the move could worsen physician shortages, while legal academics forecast similar pressure on law-school enrollment. Separately, the Education Department has circulated draft regulations that would tighten eligibility for the Public Service Loan Forgiveness program, which has already wiped out debt for more than one million public-sector workers. Under the proposal, employers could lose PSLF status if the department determines they engage in activities it classifies as illegal, including certain immigration-related work or medical care for transgender minors. Advocates contend the plan risks turning a bipartisan benefit into a political weapon and could retroactively strand borrowers who have spent years making qualifying payments.