New federal limits on graduate borrowing are set to affect a substantial share of advanced-degree students, and state policymakers are moving to fill the gap. A Consumer Finance Institute analysis found about 28% of recent graduate borrowers borrowed above the new caps that take effect in July, raising questions about who will finance expensive professional and doctoral programs. Connecticut legislators proposed a state-level graduate loan program using CHESLA funds and $10 million in state seed money to support more than 2,000 students initially. State leaders framed the plan as a direct response to federal changes that will end the Grad PLUS program and impose annual and lifetime borrowing caps. Researchers warn many graduate students would struggle to replace federal aid with private credit: nearly 40% of those who borrow above the caps may not qualify for private loans without cosigners under current underwriting standards. Colleges and states now face urgency to design targeted aid or risk enrollment and workforce pipeline disruptions in fields that traditionally rely on graduate funding.