New federal limits on graduate student loans are poised to reshape higher education just as a weak job market pushes more young workers back to school, Bloomberg writes.
Beginning in July, most borrowers will face a $100,000 lifetime cap, eliminating a key financial safety valve for graduates struggling to land entry-level roles.
That shift comes amid declining hiring, with entry-level job postings down sharply across industries and competition intensifying. As a result, some graduates are delaying or abandoning advanced degrees altogether, while others are forced into lower-paying work.
The policy change could deepen inequities, particularly for students without access to family support or private loans. At the same time, economists warn that limiting graduate education may worsen long-term workforce shortages in fields like health care. For the class of 2026, the combination of tighter credit and a sluggish labor market creates a rare double bind—fewer opportunities to work and fewer options to wait it out.
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