New federal loan caps have been established in President Donald Trump's One Big Beautiful Bill Act, which resulted in the elimination of the Grad PLUS federal loan program, which allowed graduate students to borrow up to the entire cost of their degree. Starting July 1, graduate students will be limited to $20,500 per year and up to $50,000 per year for professional degrees, according to rules finalized by the Education Department. Consumer advocates and financial experts warn that private lenders may reject many student applicants due to their credit scores or income, and those approved may face more expensive borrowing terms. The cost of the private loans could increase, with high interest rates that can make repayment more difficult. Students currently borrow roughly $10 billion a year in private student loans. Some lenders, including Navient and SoFi, have stated they are preparing for a greater demand for private student loan loans.