Congress raises graduate student loan limits—but doesn't address rising costs
H.R. 6574 — Loan Equity for Advanced Professionals Act · Filed by Timothy Kennedy (D-NY) · 76 cosponsors · Introduced Dec 10, 2025 · Referred to committee
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What it does
This bill raises the annual and aggregate borrowing limits for Federal Direct Unsubsidized Loans available to graduate and professional students. Starting July 1, 2026, graduate and professional students may borrow up to $50,000 per year (previously lower) and up to $200,000 in total across their graduate studies (previously lower), matching or exceeding current limits for some borrower categories.
Why we flagged it
The bill's sole operative mechanism is to increase the annual and aggregate borrowing caps for graduate/professional students under the Federal Direct Unsubsidized Loan program. It is a straightforward amendment to existing loan-limit statute with no riders or hidden provisions.
What the text implies
- Increased federal loan availability may reduce pressure on Congress to address underlying tuition cost inflation, as students can borrow more rather than programs becoming more affordable.
- Higher aggregate limits may increase default risk for borrowers in lower-earning fields (humanities, social services) who borrow the full $200,000 but face limited income-based repayment relief.
The full analysis lists 3 implications of this text.
Who stands to gain
graduate and professional students (direct beneficiaries of higher borrowing capacity); federal student loan servicers (may service larger loan portfolios)