Colleges and state-affiliated lenders are moving quickly to offset the impact of federal changes that phase out new Grad PLUS borrowing as of July 1. State groups and nonprofits—including Massachusetts Educational Financing Authority (MEFA) and other organizations operating state-backed lending programs—said they are expanding graduate loan products after institutions warned the federal sunsetting could restrict access to graduate education. Reporting on state-led responses, institutions and lenders described offerings that cannot fully replace Grad PLUS but aim to fill funding gaps. At least five state-based nonprofits in Connecticut, Iowa, Massachusetts, Pennsylvania, and Rhode Island, plus a Minnesota state agency, have reportedly expanded graduate lending. Lenders are also adjusting terms such as adding profession-specific loan pathways and revising requirements like co-signer eligibility. The scale of the shift is substantial: the Grad PLUS program produced about $15.5 billion in loans in the 2024–25 academic year. That creates pressure on graduate programs—especially in health-care fields—that depend on student borrowing once standard federal limits are reached. MEFA’s executive director, Thomas Graf, said his organization received direct calls from around two dozen colleges soon after the announcement of the new federal borrowing timeline, indicating that the disruption is already influencing institutional planning and student counseling.