Capping Student Loans, Capping Potential

By Editor-In-Chief  Padma Balaji and Staff Writers Eleanor Chen and Alex Duan

 

How often do you think about how to pay for college? Whether you’re a senior applying to college or an underclassmen thinking ahead, the answer is probably very often. Tuition prices costs are at an all time high — rising almost 150% over the last 20 years — and student loan debt is increasing as well. When President Donald Trump signed the “One Big Beautiful Bill” on July 4, he passed drastic student loan cuts, causing the overhaul of the entire financial aid system for millions of current and future borrowers. 

“It definitely feels like a big weight has been put back on my shoulders,” Senior Kate Gerasimova said about the student loan cuts. “I felt like [the government would be able to provide] at least a little bit of [support], but now that net is gone, and I have to fend for myself.” Gerasimova is one of millions of students who are impacted by the loan cuts. She hopes to go to dental school, which is one of the most expensive graduate programs — one that she likely won’t be able to cover through loans anymore, forcing her to reconsider her dreams of becoming a dentist. The bill’s cuts cap loans for graduate schools at $100,000 and loans for professional programs, such as medical and dental school, at $200,000. However, the average tuition alone for dental school in 2025 costs anywhere from $230,000 to $400,000. 

In 2020, about 30% of medical students and 60% of dentistry students graduated with more debt than the new limits will allow, according to calculations by financial aid expert Mark Kantrowitz. This is especially detrimental for low-income students, 95% of whom couldn’t reasonably afford college without federal aid, according to the National Association of Student Financial Aid Administrators. The student loan cuts eliminate most of the measures in place to help low-income students pay for college, such as Grad PLUS loans, which have helped cover shortfalls in university scholarships and aid. For low-income students looking at beyond a bachelor’s degree, it was one of the only ways a postsecondary education could be afforded. They also end the Biden administration’s SAVE Plan, which features low monthly payments and expedited loan forgiveness, as Republicans argue it’s too generous.

The student loan cuts come at a time when college tuition and the cost of living is already at an all-time high, exacerbating the unaffordability of higher education. These cuts, many of them ambiguous and confusing amidst an already complicated student loan system, will only add additional barriers to affordable higher education and cause students to accumulate debt. “This is another pressure [Trump] will to [put on] to students who not only have to face challenges about getting their work done [but] also have to worry about not [being] able to get a loan to continue [to follow] their dreams, and they may have to start to look for the alternate solution to fulfill their dreams with a better cost saving,” MSJ’s college counselor Yvonne Ng said. Some students are considering abandoning career paths they’re passionate about; others who are still pursuing their dreams for graduate studies have lost the stable interest rates, safety rates, and forgiveness programs that federal loans guarantee. Low-income students are therefore forced to wade into uncharted territory with historically low amounts of support. 

As federal student loans are now far too low to cover graduate programs like medicine or dentistry, many students are reevaluating their priorities, debating whether they should pursue that path at all. “The cuts have kind of made me … wonder if I should pursue a … field other than medicine.,” said Gerasimova.

The student loan cuts are likely to push other students like Gerasimova away from fields they’re passionate about if they’re unable to afford the cost of college. A US News survey found that 35% of college students are looking into reducing postsecondary education and 32% are considering a different degree from the one they’re pursuing. This is especially true for fields like liberal arts, which are typically low earning and have already seen enrollment decline in previous years. In spite of the lower earning potential, humanities are an integral part of academia. These degrees offer insight to the human psyche that sciences could not offer. However, the National Student Clearinghouse reports a combined loss of student enrollment in English, liberal arts, social sciences, communications, and journalism-related majors of more than 230,000 students. If students are eligible for fewer loans and grants, the already declining interest for humanities may further plummet, negatively impacting critical workforces and devaluing the importance of ethical and philosophical understandings of the world. 

Additionally, experts worry the cuts will push students away from low-paying, high-demand careers such as healthcare and teaching, which require substantial education but often don’t pay well. The US is currently facing a medical professional shortage, according to the The Association of American Medical Colleges, as the demand for healthcare has increased while the workforce has continued to age. Although there’s a shortage of healthcare professionals, fields with low compensation and high rigor are facing the biggest shortfalls, including primary care doctors and pediatricians. As the cap on loans increases and debt relief options decrease, many students are incentivized to pursue degrees that have a high return on investment, exacerbating shortages for low-paying degrees in and outside of healthcare. 

  For many MSJ students going to attend college for their bachelors’ and beyond, the damage is done. The “One Big Beautiful Bill” axes many of the aid programs that post-secondary students have long relied on. However, local leaders, charitable foundations, and schools could offset the damage to higher education by changing their budget priorities. California’s DREAM does still act to uniquely give undocumented immigrants a chance at college when they weren’t eligible for federal programs like FAFSA. Schools like New York University and Harvard University waive tuition fees for undergraduate students whose families earn under $100,000, and Harvard even provides a living stipend. The UC system has its own scholarships that exceptional students in need can apply for, and many private universities offer need-based scholarships for their disadvantaged students. The Gates foundation, the Michael & Susan Dell Foundation, and Questbridge are all application-based scholarships that serve thousands of low-income high school seniors every year. In early February, MSJ’s College and Career Center will hold a financial workshop about paying for college for parents and students alike. 

Furthermore, students can pressure politicians by involving themselves in the legislative process. Student backlash over loans that are drowning students in debt made loan forgiveness a core issue for the Democratic platform. In 2022, UC graduate students led a walkout that resulted in minimum pay increases and better working conditions. We cannot stand by and let the administration put education under lock and key, only accessible to those who can afford exorbitant tuition.