The recent passage of the One Big Beautiful Bill, signed into law by President Donald Trump on July 4, has initiated a wave of discussions among higher education experts and university officials about its potential implications for institutions like George Washington University (GW).
While the law introduces changes to federal student loan borrowing rules—including lifetime borrowing caps and a new financial accountability measure—experts caution that it will take time to assess the full impact of the law on enrollment and revenue.
A major focus of the bill is its stringent borrowing caps. For undergraduate students, the lifetime borrowing limit will be set at $257,500, while more specific caps will be applied to graduate and professional programs. Under the revised Parent PLUS program, parents can now borrow a maximum of $20,000 per year, accumulating to $65,000 in total borrowing.
Graduate students will face a yearly borrowing cap of $20,500, resulting in a lifetime borrowing limit of $100,000. For professional programs, such as law and medicine, the yearly cap will increase to $50,000, with a total lifetime borrowing limit of $200,000.
These changes mark a considerable shift from previous loan caps, which ranged from $5,500 to $7,500 annually for undergraduate students, with total borrowing limits previously set at $31,000 for dependent students and $57,500 for independent students.
Kathleen Fackelmann, a university spokesperson, emphasized GW’s commitment to supporting students through various financial aid offerings despite the challenges posed by these legislative changes.
Fackelmann noted that the elimination of Grad PLUS loans and the caps on federal financial aid could complicate the road ahead for students.
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