Loan Equity for Advanced Professionals Act
Sponsors
Legislative Progress
In CommitteeMr. Kennedy of New York (for himself, Ms. Tokuda, and …
Summary
What This Bill Does
The Loan Equity for Advanced Professionals Act increases the amount of federal student loans that graduate and professional students can borrow. Starting July 1, 2026, these students can borrow up to $50,000 per year and $200,000 total (in addition to any undergraduate loans) through the Federal Direct Unsubsidized Stafford Loan program.
Who Benefits and How
Graduate and professional students benefit by gaining access to more federal loan funding, which typically has lower interest rates and better repayment terms than private loans. Law, medical, business, and other professional schools also benefit, as students will be able to cover more of their tuition through federal loans rather than needing to seek private financing or reduce enrollment.
Who Bears the Burden and How
The federal government and taxpayers face increased exposure through larger loan volumes and potential defaults. Private student loan lenders like Sallie Mae and SoFi will likely see reduced demand as more students can meet their borrowing needs through federal loans. Future graduates may graduate with larger debt loads, though this is offset by the generally more favorable terms of federal loans compared to private alternatives.
Key Provisions
- Sets annual borrowing limit at $50,000 for Federal Direct Unsubsidized Stafford loans for graduate/professional students
- Sets aggregate borrowing limit at $200,000 (on top of undergraduate borrowing)
- Takes effect on July 1, 2026
- Amends Section 455(a)(4) of the Higher Education Act of 1965
Evidence Chain:
This summary is derived from the structured analysis below. See "Detailed Analysis" for per-title beneficiaries/burden bearers with clause-level evidence links.
Primary Purpose
Establishes new annual and aggregate loan limits for Federal Direct Unsubsidized Stafford loans for graduate and professional students, increasing borrowing capacity effective July 1, 2026.
Policy Domains
Legislative Strategy
"Increase federal loan borrowing capacity for graduate and professional students to help cover rising education costs while maintaining debt limits"
Likely Beneficiaries
- Graduate and professional students who need to borrow more for education costs
- Graduate schools and professional schools (law, medicine, business) that charge high tuition
- Private student loan industry (reduced market share as federal loans expand)
Likely Burden Bearers
- Federal government (increased loan volume and potential default exposure)
- Taxpayers (bear risk of loan defaults and forgiveness programs)
- Future graduates (higher debt loads upon graduation)
Bill Structure & Actor Mappings
Who is "The Secretary" in each section?
- "the_secretary"
- → Secretary of Education
Key Definitions
Terms defined in this bill
Federal student loans available to graduate and professional students without income-based interest subsidies, governed by Section 455 of the Higher Education Act of 1965
We use a combination of our own taxonomy and classification in addition to large language models to assess meaning and potential beneficiaries. High confidence means strong textual evidence. Always verify with the original bill text.
Learn more about our methodology