US Education Dept. Caps Grad, Pro Student Loans

The U.S. Department of Education announced a final rule on Thursday that imposes new caps on federal student loans for graduate and professional programs, effective July 1. The changes limit annual borrowing to $20,500 and a total of $100,000 for typical graduate students, while professional programs such as law, medicine, pharmacy, dentistry, veterinary medicine, optometry, osteopathic medicine, podiatry, chiropractic care, theology and clinical psychology face annual limits of $50,000 and an aggregate cap of $200,000.

The rule also restricts Parent PLUS loans to $20,000 annually and $65,000 per dependent student, the first such limits on that program. Loans taken out before July 1 remain unaffected, and current borrowers enrolled continuously will be exempt from the caps for up to three years, according to department officials.

Officials described the caps as a measure to curb excessive borrowing, streamline repayment and compel universities to reduce tuition costs. "The Trump Administration is focused on putting students and taxpayers first, which is why we are implementing durable policies to make higher education more affordable," Under Secretary of Education Nicholas Kent...