President Donald Trump has signed the Big Beautiful Bill Act, a sweeping Republican spending package that for the first time imposes firm limits on how much graduate and professional students can borrow from the federal government. Beginning in the summer of 2026, graduate students will be restricted to $50,000 in federal loans per academic year, with a lifetime ceiling of $200,000. The law abolishes the Graduate PLUS program, which previously allowed students to finance the full cost of advanced degrees, and sets a $65,000 cap on Parent PLUS loans. It also streamlines repayment options, replacing multiple income-driven plans with a fixed schedule and a single discretionary-income assistance program. Universities that charge tuition well above the new caps—particularly medical and law schools—are expected to see students turn to private lenders or reconsider enrollment, potentially reshaping professional-school demographics. The changes arrive as outstanding U.S. student debt hovers around $1.8 trillion, underscoring the political pressure to curb federal exposure while keeping higher education accessible.