Under provisions of the One Big Beautiful Bill Act, federal graduate‑loan programs will be restructured with lifetime borrowing caps and the elimination of the Graduate PLUS program beginning July 1, 2026. Critics argue the policy will ration credit, limit access to advanced degrees and shift students toward higher‑cost private borrowing or family financing. Commentators and law‑school and medical‑school advocates warn the policy creates a two‑tier system: certain professional degrees retain higher caps, while many advanced degrees in education, public health, social work and other licensure fields face lower limits despite market shortages. Observers say the change could exacerbate K‑shaped labor market stratification by making graduate education more contingent on household wealth than on ability. University leaders, graduate schools and financial‑aid officers must model the caps’ impacts on enrollment, program affordability and diversity. Institutions may need to expand institutional aid, redesign program lengths, and engage in advocacy or litigation to mitigate disruptions to the graduate talent pipeline.