Graduate Opportunity and Affordable Loans Act

This bill, titled the Graduate Opportunity and Affordable Loans Act, would overhaul federal student loan options for graduate and professional students. Key changes include: (1) a new set of annual and aggregate limits for Federal Direct Unsubsidized Stafford Loans beginning July 1, 2025—$20,500 per year for graduate students and $40,500 per year for professional students, with aggregate limits of $65,000 (graduate) or $130,000 (professional) beyond undergraduate debt; (2) an explicit end to the Federal Direct PLUS Loan program for graduate and professional students, effective July 1, 2025, with institutions required to notify students of the termination by July 2025; and (3) transitional provisions and institutional discretion allowing prorating or limiting loan amounts within a framework that applies consistently across borrowers. In short, the bill increases unsubsidized loan limits for professional students, imposes an end to Grad PLUS loans for graduate/professional students, and provides transitional rules and lender/aid-office flexibility. The policy aims to recalibrate federal financing for graduate education, shifting away from Grad PLUS as a source of graduate funding while enabling higher per-year borrowing limits for certain graduate programs. The overall effect could be to increase debt capacity for professional-degree students while reducing alternative federal loan options, with transitional protections for students who had disbursements in 2024-2025.