Student Loan Planner Will 50% of All Grad Programs Close?
Sep 9, 2025
A seismic shift in graduate education financing is on the horizon as strict loan caps are set to impact students starting in 2026. With limits on federal borrowing, many programs, particularly in fields like medicine and pharmacy, could face closure. The conversation dives into the economic consequences for schools and students alike, and what this means for future careers. Listeners will learn how to prepare for these upcoming changes and navigate their financial options amidst uncertainty.
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New Federal Loan Caps Take Effect
- The One Big Beautiful Bill (OBBBB) cuts grad/professional federal borrowing to ~$50k/year and $200k lifetime for programs starting July 2026. This will drastically reshape how many programs are financed and who can attend them.
Pharmacy Schools Grew After Grad PLUS
- Travis uses pharmacy schools as a microcosm to show how Grad PLUS expanded program growth and enrollment after 2006. Pharmacy programs ballooned from ~45 to 130+ schools after Grad PLUS enabled unlimited borrowing.
Loan Availability Distorted Program Economics
- Unlimited federal borrowing removed price discipline and let schools charge high tuition because students could shift risk to income-driven repayment. That enlarged program supply, lowered negotiating power for graduates, and pressured salaries via oversupply.