Grad loan cap: ~$21,000/year
Starting July 1, 2026, the Department of Education caps federal loans for most graduate programs at roughly $21,000 per year.
Snapshot · Planet Money
Can the Trump administration make college cheaper?
Explore episode
Jul 1, 2026
Where this was said
The Confusing Plan: Less Money to Lower the Burden
At 2:19 · chapter starts 0:19
Kenny Malone opens with a striking number — nearly $1.7 trillion in federal student loan debt — and quickly zeroes in on the Department of Education's plan to address it [1] — Kenny Malone "$1.7 trillion federal student loan portfolio: The total federal student loan debt in the United States, a figure that includes a disproport…" 00:19 . The approach, championed by Education Secretary Linda McMahon, is to cap how much students can borrow rather than expand aid. Starting July 1, most grad students will be limited to about $21,000 per year in federal loans. The administration's logic is that easy federal money gives colleges no incentive to lower prices — so limiting it should force their hand. Cory Turner, NPR's education correspondent, has been tracking this and explains why the logic sounds plausible even if it's far from settled. The chapter closes on the key question the rest of the episode sets out to answer: is this idea actually true?
$1.7 trillion federal student loan portfolio
The total federal student loan debt in the United States, a figure that includes a disproportionately large share of graduate school debt.
The Plan: Give Less Money to Lower Tuition
The Department of Education's plan to reduce the burden of college is to lend students less money. Starting July 1, 2026, federal graduate loans are capped at roughly $21,000 per year for most programs. The bet: if students can't borrow more, schools will have no choice but to charge less.
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