WASHINGTON - U.S. students enrolled in eleven specific degree programs will gain access to increased federal student loan limits, possibly borrowing up to $200,000, under revised guidelines announced November 27, 2023. Teh Department of Education finalized changes to loan limits for programs leading to professions experiencing critical shortages, aiming to address workforce gaps in essential fields.
The adjustments,effective for the 2024-2025 academic year,respond to longstanding concerns about the adequacy of federal loan amounts for students pursuing lengthy and costly educations in high-demand areas. the increased borrowing capacity is designed to make these career paths more accessible,especially for students from lower-income backgrounds. Affected programs include medicine,dentistry,veterinary medicine,and various specialized health professions,as well as fields like speech-language pathology and occupational therapy.
The eleven degree programs eligible for the higher loan limits are:
* Allopathic Medicine
* Osteopathic Medicine
* Dentistry
* Veterinary Medicine
* Optometry
* Pharmacy
* Podiatric Medicine
* Speech-Language Pathology
* Occupational therapy
* Physical Therapy
* Registered Nursing (for students pursuing a master’s or doctoral degree)
Currently, most undergraduate students are limited to borrowing $5,500 in their first year, rising to $7,500 in their second year, and $7,500 or $8,500 in subsequent years, depending on their status. Graduate students can typically borrow up to $20,500 annually.The new rule allows students in the designated programs to borrow up to the total cost of attendance, capped at $200,000.
The Department of Education estimates that approximately 1.4 million students will be impacted by these changes. Further details regarding implementation and eligibility requirements are available on the Federal Student Aid website.