[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[S. 308 Introduced in Senate (IS)]

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119th CONGRESS
  1st Session
                                 S. 308

   To modify the annual and aggregate limits of Federal Unsubsidized 
Stafford Loans for graduate and professional students, and to terminate 
 Federal Direct PLUS Loans for graduate and professional students, and 
                          for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                            January 29, 2025

 Mr. Tuberville (for himself and Mr. Cassidy) introduced the following 
  bill; which was read twice and referred to the Committee on Health, 
                     Education, Labor, and Pensions

_______________________________________________________________________

                                 A BILL


 
   To modify the annual and aggregate limits of Federal Unsubsidized 
Stafford Loans for graduate and professional students, and to terminate 
 Federal Direct PLUS Loans for graduate and professional students, and 
                          for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Graduate Opportunity and Affordable 
Loans Act''.

SEC. 2. LOAN REFORMS.

    Section 455 of the Higher Education Act of 1965 (20 U.S.C.1087e) is 
amended--
            (1) in subsection (a)--
                    (A) in paragraph (3)(A)--
                            (i) in the matter preceding clause (i), by 
                        striking ``part B'' and inserting ``part B--''
                            (ii) beginning in the matter preceding 
                        clause (i), by striking ``for any period'' and 
                        all that follows through ``professional 
                        student'' and inserting the following:
                            ``(i) for any period of instruction 
                        beginning on or after July 1, 2012, a graduate 
                        or professional student''; and
                            (iii) in clause (ii), by inserting ``for 
                        any period of instruction beginning on July 1, 
                        2012 and ending on June 30, 2025 (subject to 
                        paragraph (4)(C)),'' before ``the maximum 
                        annual''; and
                    (B) by adding at the end the following:
            ``(4) Graduate and professional annual and aggregate limits 
        for unsubsidized stafford loans beginning july 1, 2025.--
                    ``(A) Annual limits beginning july 1, 2025.--
                Subject to subparagraph (C), beginning on July 1, 2025, 
                the maximum annual amount of Federal Direct 
                Unsubsidized Stafford loans--
                            ``(i) a graduate student, who is not a 
                        professional student, may borrow in any 
                        academic year (as defined in section 481(a)(2)) 
                        or its equivalent shall be $20,500; and
                            ``(ii) a professional student may borrow in 
                        any academic year (as defined in section 
                        481(a)(2)) or its equivalent shall be $40,500.
                    ``(B) Aggregate limits beginning july 1, 2025.--
                Subject to subparagraph (C), beginning on July 1, 2025, 
                the maximum aggregate amount of Federal Direct 
                Unsubsidized Stafford loans--
                            ``(i) a graduate student, who is not a 
                        professional student, may borrow is $65,000, in 
                        addition to the amount borrowed for 
                        undergraduate education; and
                            ``(ii) a professional student may borrow is 
                        $130,000, in addition to the amount borrowed 
                        for undergraduate education.
                    ``(C) Phase out provisions.--Notwithstanding the 
                date of the applicability of the limits set forth in 
                this paragraph, an eligible graduate student, including 
                a professional student, who received a disbursement of 
                a Federal Direct Unsubsidized Stafford loan after June 
                30, 2024, and before July 1, 2025, for the 2024-2025 
                award year, may receive a Federal Direct Unsubsidized 
                Stafford loan for the 2025-2026 award year in amounts 
                that are subject to the annual and aggregate loan 
                limits applicable prior to July 1, 2025, if the 
                borrower did not graduate prior to the 2025-2026 award 
                year.
                    ``(D) Definitions.--In this paragraph:
                            ``(i) Graduate student.--The term `graduate 
                        student' means a student enrolled in a program 
                        at the postbaccalaureate level, such as a 
                        postbaccalaureate certificate, a master's 
                        degree, or a doctor's degree.
                            ``(ii) Professional student.--The term 
                        `professional student' means a student enrolled 
                        in a doctor's degree-professional practice 
                        program.
                            ``(iii) Postbaccalaureate certificate; 
                        master's degree; doctor's degree; doctor's 
                        degree professional-practice.--The terms 
                        `postbaccalaureate certificate', `master's 
                        degree', `doctor's degree', and `doctor's 
                        degree professional-practice' shall have the 
                        meaning provided in the 2022-2023 glossary of 
                        the Integrated Postsecondary Education Data 
                        System (OMB NO. 1859-0582 v. 30).
            ``(5) Termination of authority to make federal direct plus 
        loans to graduate and professional students.--
                    ``(A) In general.--Notwithstanding any other 
                provision of law, for any period of instruction 
                beginning on or after July 1, 2025, a graduate student 
                (including a professional student) shall not be 
                eligible to receive a Federal Direct PLUS Loan under 
                this part for enrollment in a program of graduate or 
                doctor's degree professional-practice education.
                    ``(B) Phase out provisions.--Not later than 30 days 
                after the date of enactment of the Graduate Opportunity 
                and Affordable Loans Act, each institution of higher 
                education that enrolls graduate students or 
                professional students shall notify prospective and 
                enrolled graduate students and professional students 
                that the Federal Direct PLUS Loan program will end for 
                graduate students and professional students on June 30, 
                2025.
                    ``(C) Definitions.--The definitions in paragraph 
                (4)(D) shall apply to this paragraph.
            ``(6) Institutionally-determined limits.--Notwithstanding 
        any other provision of this part, an eligible institution (at 
        the discretion of a financial aid administrator at the 
        institution) may prorate or limit the amount of a loan a 
        student who is enrolled in a program of study at that 
        institution for a period of instruction beginning on or after 
        July 1, 2025, may borrow under this part for an academic year, 
        as long as any proration or limit is applied consistently to 
        all borrowers entering such program of study.''.
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