Federal lending changes set to take effect in July are prompting state-level action and fresh analysis of who will be hurt. A Federal Reserve Bank of Philadelphia study found roughly 28% of recent graduate borrowers exceeded the new federal caps, signaling a large cohort now facing tighter financing options. In response, Connecticut Democrats proposed a state graduate loan program using public funds to fill the gap left by the end of Grad PLUS. The federal reform replaces Grad PLUS with annual and lifetime borrowing limits—$20,500 annually and $100,000 total for many graduate students—upending financing for doctoral, medical, and other professional programs. The Fed analysis found many of those who borrowed above the caps would struggle to obtain private credit without cosigners. State proposals like Connecticut’s, which would deploy up to $30 million in initial funds, aim to preserve access for healthcare, research, and other high-cost graduate paths. Colleges must now reassess tuition strategy, recruitment of professional students, and contingency advising for cohorts likely to face tightened borrowing windows.