BUFFALO, N.Y. — For many who go to college, taking out loans is just part of the process. For some, those loans can hit hundreds of thousands of dollars.

“People are basically coming out of school with mortgages,” said Nancy Nierman, the assistant director of the Education Debt Consumer Assistance Program. “There's a little under 43 million people that have federal student loans.”

Come July 1, 2026, under President Donald Trump’s so-called “Big Beautiful Bill,” some students might not be able to borrow all the money they need.

“We've already seen some evidence of people that were preparing for this, that have kind of had their dreams shattered as a result of these borrowing changes,” said Nierman.

What are those changes?

  • Caps for direct unsubsidized loans for graduate school: $100,000 for master’s degrees, $200,000 for professional degrees.
  • Caps for Parent PLUS loans for undergrad or graduate school: $20,000 grand per year, per student, with a $65,000 cap per child.
  • The elimination of Graduate PLUS loans, which allowed grad students to borrow up to the cost of attendance with better protections, and repayment or forgiveness options.

“Everybody acknowledges that there's a problem with student lending the cost of college, but there's a mismatch in the way this bill kind of only addresses the student borrowing side of it and not the college cost side of it,” said Nierman.

It could have people turning away from pricier schools or professional programs.

Which, especially for medicine and dentistry, usually come with an average debt between $250,000 and $300,000, according to the Education Data Initiative.

“That's not great for the people that would have pursued these careers, and it's not great for society overall to not have access to the best and the brightest,” said Nierman.

Spectrum News 1 reached out to the University at Buffalo about these changes.

Graham Hammill, the dean of the Graduate School and vice provost for academic affairs, said:

"The university is deeply concerned about the proposed elimination of Grad PLUS loans and changes to federal borrowing caps that will negatively impact students pursuing a professional education at UB—especially in fields like law, medicine, and dental medicine. The university is committed to doing everything possible to continue to keep the cost of attendance low across our graduate and professional programs, however there is no direct substitute for the accessibility and consumer protections built into federal programs like Grad PLUS. If these changes are included in final legislation, the university will work with impacted students to review alternative funding options and opportunities, such as private loans, to ensure their education remains attainable and affordable." 

Nierman and EDCAP work with those struggling with student debt.

She says people will have to search more for scholarships and grants, or turn to private loans, which usually have higher interest rates that are variable, not fixed rates like federal loans.

They’re also easier to default on, which could impact your ability to rent an apartment, buy a car or house or more, assuming you can get one in the first place.

“They're going to require a co-signer, which in most cases is going to be the parent," said Nierman. "If you just come from a low economic or an economically disadvantaged environment, you're going to see people are just not going to be able to get private loans.”

Nierman says there is one potential bright side to all of this.

“Maybe this longer term will have the effect of maybe bringing college costs down a little bit,” she said.

Until that happens, it’s just about being prepared.

“I think that you have to just be practical about it, make it your job to understand the new rules,” said Nierman.

One other big note is for parents currently taking out Parent PLUS loans.

If any more money is taken out after July 1, 2026, all that loan money would be lumped under new regulations, which don’t have income-driven repayment plans or forgiveness programs as they do now.

Private loans might then be a better option to keep that eligibility.

Any New Yorker with questions can reach out to EDCAP for more information or call their hotline at (888) 614-5004.