US Federal 2025-2026 Regular Session

US Federal Senate Bill SB308

Introduced
1/29/25  

Caption

Graduate Opportunity and Affordable Loans ActThis bill limits federal student loan borrowing for graduate and professional students.Specifically, the bill terminates the ability of a graduate or professional student to receive a Direct PLUS Loan. Institutions of higher education (IHEs) must notify their prospective and enrolled graduate and professional students that Direct PLUS Loans terminate on June 30, 2025.Additionally, the bill establishes the aggregate loan limit for Direct Unsubsidized Loans as $65,000 for a graduate student (in addition to the amount borrowed for undergraduate education) and $130,000 for a professional student (in addition to the amount borrowed for undergraduate education).The bill allows IHEs to set lower loan limits.

Impact

In addition to adjusting borrowing limits, SB308 also proposes the termination of Federal Direct PLUS Loans for graduate students commencing June 30, 2025. This marks a significant shift in funding opportunities available to graduate students, as the PLUS loan program has provided an important financial resource. Once this program is phased out, graduates may find themselves with fewer funding options, potentially impacting their ability to finance advanced degrees, especially in fields that often require significant financial investment.

Summary

SB308, known as the Graduate Opportunity and Affordable Loans Act, introduces significant reforms to the federal loan system for graduate and professional students. Key amendments include modifications to the annual and aggregate limits on Federal Direct Unsubsidized Stafford Loans. Under the bill, beginning July 1, 2025, graduate students will be limited to borrowing $20,500 annually, while professional students will be able to borrow up to $40,500 annually. These changes aim to streamline student borrowing and offer clearer expectations to borrowers as they navigate their education financing options.

Contention

Debate surrounding SB308 centers on concerns regarding student debt and support systems for graduate education. Proponents argue that the bill encourages responsible borrowing by limiting debt accumulation for graduates, presumably preventing overwhelming financial burdens post-graduation. Conversely, critics express worry that the elimination of PLUS Loans will disproportionately affect students pursuing degrees in high-cost fields such as medicine or law. The question remains whether the changes proposed will ultimately benefit or hinder students' access to higher education in the long term.

Congress_id

119-S-308

Policy_area

Education

Introduced_date

2025-01-29

Companion Bills

No companion bills found.

Previously Filed As

US H3035

To reduce graduate student loan debt

US HB3027

Relating to the admission of nonresident undergraduate and graduate students to public institutions of higher education.

US HB2003

Affordable Loans for Students Act

US SB00479

An Act Establishing A Student Loan Forgiveness Program For State Medical School Graduates.

US SB1948

POST GRAD Act Protecting Our Students by Terminating Graduate Rates that Add to Debt Act

US HB3711

POST GRAD Act Protecting Our Students by Terminating Graduate Rates that Add to Debt Act

US S1981

Relative to graduate student loan deductions

US HB06489

An Act Requiring Public Institutions Of Higher Education To Repay Student Loans For A Graduate Who Is Granted Bankruptcy Protection.

US A01146

Establishes the student loan borrower bill of rights to protect borrowers and ensure that student loan servicers act more as loan counselors than debt collectors.

US S03772

Establishes the student loan borrower bill of rights to protect borrowers and ensure that student loan servicers act more as loan counselors than debt collectors.

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