Law Students
Planning to attend law school? New student loan restrictions may affect the decision
Financing law school will become more difficult for many students as a result of federal loan restrictions in the budget megabill signed by President Donald Trump on July 4.
Law.com has the story on the changes, which begin July 1, 2026.
The bill caps unsubsidized federal loans to law students and other professional students at $50,000 a year and $200,000 in a lifetime, the article explains. With caps on undergraduate borrowing, the lifetime limit is $257,500 for professional students, according to CNBC.
Currently the annual cap on professional loans is $20,500 a year, but students can take out Direct PLUS loans to make up the difference.
Under the new bill, the Direct PLUS loans are available only to parents borrowing for undergraduate students. Law students who have Direct PLUS loans before July 2026, however, can continue to access them for three years or the time remaining in the program.
Annual tuition is above $50,000 at 33 of 50 law schools on Law.com’s list of 2025 Go-To Law Schools. The list ranks schools based on the percentage of graduates who join the largest 500 law firms as associates.
The changes may force some law students to apply for private loans with more stringent requirements and higher interest rates and fees.
The Law School Admission Council is holding webinars on the restrictions for students and admissions professionals.
“Our initial impression is that those students who rely most heavily on federal financial aid will be particularly impacted in their choice of schools and perhaps whether to attend law school at all,” an LSAC spokesperson told Law.com.
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