On this page, you'll find proposals relating to loan program reform.

H.R.6862 — Protecting Health Care Workforce Pipelines Act

Sponsor: Rep. Harder [D-CA]
Introduced: 12/18/2025
NASFAA Summary: This bill would delay, until July 1, 2030, both the termination of authority to award Federal Direct PLUS loans to graduate and professional students and the implementation of new loan limits for those students when they are enrolled at certain covered institutions. The delay would apply to graduate and professional programs offered by health professions schools, institutions offering health professions or qualifying nursing programs, provided the institution is located within 100 miles of a designated health professional shortage area or serves a medically underserved community. For eligible students at these covered institutions, the bill extends the current Direct PLUS loan authority and postpones the applicability of the new graduate and professional loan limits by four years, from July 1, 2026, to July 1, 2030.

S.3538 — Student Loan Tax Elimination Act

Sponsor: Sen. Banks [R-IN]
Introduced: 12/17/2025
NASFAA Summary: This bill would eliminate origination fees on all Federal Direct Loans. The repeal would apply to Direct Loans for which the first disbursement is made on or after July 1 following the date of enactment, as well as to Federal Direct Consolidation Loans for which the application is received on or after that date.

H.R.6739 — Clarity in Professional Degree Act

Sponsor: Rep. Dingell [D-MI]
Introduced: 12/16/2025
NASFAA Summary: This bill would broaden the federal definition of a “professional degree” by explicitly adding a range of graduate and health-related fields, including nursing, occupational and physical therapy, social work, accounting, architecture, education, music education, world languages, and public health, to ensure students in those programs remain eligible for increased loan borrowing and loan limit amounts.

H.R.6718 — Professional Student Degree Act

Sponsor: Rep. Lawler [R-NY]
Introduced: 12/15/2025
NASFAA Summary: This bill would revise the Higher Education Act’s definition of “professional degree” by removing the outdated regulatory reference and explicitly defining the term in statute. It establishes that a professional degree prepares a student to begin practice in a licensed profession and requires skills beyond those of a bachelor’s degree, as determined by the Secretary. The bill then codifies a long list of specific degrees [medicine, law, pharmacy, dentistry, nursing, psychology, business, education, social work, and others] as statutory professional degrees, while allowing the Secretary to add additional programs that meet the criteria.

H.R.6677 — Professional Degree Access Restoration Act

Sponsor: Rep. Torres [D-NY]
Introduced: 12/11/2025
NASFAA Summary: This bill would fully reverse the graduate and professional student loan restrictions enacted under the OBBBA. The bill removes the provisions that limited the availability of Federal Direct Unsubsidized Loans for graduate and professional students, effective July 1, 2026, and eliminates related references to discontinued PLUS loan limitations. By striking those caps and conforming amendments, the legislation restores the prior annual and aggregate loan limits for graduate and professional students.

H.R.6574 — Loan Equity for Advanced Professionals Act

Sponsor: Rep. Kennedy [D-NY]
Introduced: 12/10/2025
NASFAA Summary: This bill would set uniform annual and aggregate borrowing limits for graduate and professional students under the Federal Direct Unsubsidized Loan program. Beginning July 1, 2026, the bill would establish a maximum annual borrowing limit of $50,000 for graduate and professional students. It would also set a maximum aggregate borrowing limit of $200,000 in Federal Direct Unsubsidized Loans for graduate and professional study, in addition to any amounts borrowed for undergraduate education. The bill applies these limits across all eligible graduate and professional programs of study.

H.R.4555 — Student Loan Contract Act of 2025

Sponsor: Rep. Underwood [D-IL]
Introduced: 07/21/2025
NASFAA Summary & Analysis: This bill would change the name of master promissory notes for federal student loans to ‘student loan contracts’. 

H.R.3711/S.1948 — POST GRAD Act

Sponsor: Rep. Chu [D-CA] 
Sponsor: Sen. Padilla [D-CA]
Introduced: 06/04/2025
NASFAA Summary & Analysis: This bill would restore subsidized loan eligibility for individuals seeking a graduate degree. Specifically, the bill would once again make graduate students eligible to receive federal Direct Subsidized Loans, which was ended in 2011 by the Budget Control Act.

H.R.3530 — Flight Education Access Act

Sponsor: Rep. Davis [D-NC]
Introduced: 05/21/2025
NASFAA Summary & Analysis: This bill would raise federal student loan limits for students enrolled in accredited commercial pilot training programs.

S.1559/H.R.3298 — Know Before You Owe Federal Student Loan Act of 2025

Sponsor: Sen. Grassley [R-IA]
Sponsor: Rep. Miller-Meeks [R-IA]
Introduced: 05/01/2025
NASFAA Summary & Analysis: This bill would propose changes to federal student loan borrowers' counseling and disclosure requirements. It replaces "entrance counseling" with broader pre-loan counseling, requiring it before each new loan disbursement, not just for first-time borrowers. The counseling must now include detailed information about debt-to-income ratios, estimated costs after graduation, and strategies to reduce borrowing. Institutions would also require students to manually confirm the loan amount they want to borrow before certification. The bill also requires quarterly disclosures to borrowers even during non-payment periods, outlining their loan balances, interest rates, accrued interest, and the benefits of making voluntary payments during these times.

H.R.2028/S.942 — Resident Education Deferred Interest (REDI) Act

Sponsor: Rep. Babin [R-TX] 
Sponsor: Sen.Rosen [D-NV]
Introduced: 03/11/2025
NASFAA Summary & Analysis: This bill would provide interest-free deferment on federal student loans for borrowers serving in a medical or dental internship or residency program. During this deferment, no payments would be required, and interest would not accrue. 

H.R.2003 — Affordable Loans for Students Act

Sponsor: Lawler [R-NY]
Introduced: 03/10/2025
NASFAA Summary & Analysis: This bill would lower interest rates on federal student loans to 2%. The bill mandates automatic interest rate modifications for federal loans held by the Department of Education and allows borrowers with federally backed loans held by private lenders to refinance at 2% without extending their repayment terms. It also ensures no origination fees for refinanced loans and requires the Department of Education to report on implementation. The new 2% rate would apply to all new federal student loans issued after enactment.

H.R.1759 — Affordable PLUS Repayment Options for Parents Act of 2025

Sponsor: Rep. Waters, Maxine [D-CA] 
Introduced: 02/27/2025
NASFAA Summary & Analysis: This bill would allow Parent PLUS loan borrowers to repay their loans under income-contingent repayment (ICR) or income-based repayment (IBR) plans, which were previously unavailable to them. The bill removes restrictions preventing Parent PLUS loans and their consolidation loans from qualifying for these repayment options. The changes take effect immediately upon enactment and apply to both current and future Parent PLUS borrowers.

H.R.1739/S.801 — Higher Education Reform and Opportunity Act

Sponsor: Rep. Roy [R-TX]/Sen. Lee [R-UT] 
Introduced: 02/27/2025
NASFAA Summary & Analysis: This bill would eliminate the current federal student loan program and replace it with “federal direct simplification loans”. This would be one loan given to all eligible borrowers, with varying interest rates based on degree program, with interest that begins to accrue when the loan is disbursed. Dependent undergraduate borrowers can borrow up to $7,500 annually, with an aggregate of $30,000; Independent undergraduate students may borrow up to $15,000 annually, with an aggregate of $60,000; and graduate students may borrow up to $18,500 annually, with an aggregate of $74,000. 

S.308 — Graduate Opportunity and Affordable Loans Act

Sponsor: Sen. Tuberville [R-AL] 
Introduced: 01/29/2025 
NASFAA Summary & Analysis: This bill would set new borrowing limits for graduate ($20,500 annually, $65,000 total) and professional students ($40,500 annually, $130,000 total). A phase-out provision allows certain continuing students to borrow under previous limits for the 2025-2026 award year if they received a loan disbursement in 2024-2025 and have not graduated. The Graduate PLUS Loan program will end for graduate and professional students after June 30, 2025, and institutions must notify students of this change within 30 days of enactment. Institutions may also set institutionally-determined loan limits, allowing financial aid administrators to prorate or cap borrowing amounts for all students in a program, as long as policies are applied consistently.

Legislative Tracker Overview| Archive: Loan Program Reform