Planet Money · Wednesday, July 1, 2026
The Trump administration is implementing a new plan, effective July 1st, to curb the rising cost of higher education by capping federal student loans. Education Secretary Linda McMahon announced that graduate students in most fields will be limited to $21,000 per year in federal loans.
“We want to bring down the cost of education.”
“We've put in caps on programs for graduate students and undergraduates to make sure that we can help reduce the cost and the burden of college.”
“So that plan, basically, is starting July 1st, if you want to get a graduate degree in most fields, the Department of Education, the biggest lender for student loans, is saying that they're only going to give you about $21,000 a year. That is the cap.”