Nationwide, institutions of higher learning are still assessing the potential fallout of the One Big Beautiful Bill Act following its passage in early July. Some advocates believe it will be years before we have a full understanding of the legislation’s impact in relation to postsecondary education.

The original version of the bill that passed the House of Representatives contained several tough measures affecting colleges and universities – along with the students they serve – including provisions targeting financial aid programs. These included a plan to eliminate subsidized federal undergraduate loans, a rule tying Pell Grant payouts to student credit-hour enrollment, and restrictions on student-aid eligibility for immigrant students.

The version signed into law is nowhere near that draconian, but families and the postsecondary education institutions that serve them hardly came away unscathed.

Perhaps most troubling is the elimination of the 19-year-old Grad PLUS program, which enables graduate and professional students to borrow unlimited funds toward their degrees. Starting in July 2026, graduate student borrowing will be capped at $20,500 per year, with a lifetime maximum of $100,000. Professional students in law and medical programs will be able to borrow up to $50,000 per year, not to exceed a total of $200,000.

Another worrisome development: Restrictions on the Parent PLUS loan program capping the amount parents can borrow to fund their children’s education at $20,000 per year, with a lifetime maximum of $65,000. Currently, there are no limits on Parent PLUS loans.

Policy experts warn that these changes are all but certain to drive students and parents to the private student-loan market, which typically offers fewer borrower protections and where predatory lending is a real concern.

While supporters of the legislation argue that the borrowing caps are largely in line with the average cost of earning a degree, data from the Education Data Initiative shows that tuition costs vary widely. A master’s degree typically costs between $44,640 and $71,140, but law and medical degrees average $217,480 and $238,420, respectively – well above the new caps – and many institutions cost more.

I understand the case for reform and the need to guard the public purse. My first impulse, however, is to be wary of any restriction that could potentially limit educational attainment, as this would have far-reaching implications.

In fact, administrators at some medical schools are warning that the cap on Grad PLUS loans could discourage students from pursuing careers in medicine at a time when the country is already producing too few doctors. According to the Association of American Medical Colleges, the United States is on track to have a shortage of as many as 86,000 physicians by 2036.

Grad PLUS and Parent PLUS loans are clearly popular with students and parents. Each year, Americans receive billions of dollars in funding from these programs.

This suggests a need for borrowing options without hard limits.

As students and parents know all too well, tuition is but one expense when pursuing a college degree. Associated costs include housing, food, transportation, and insurance. I doubt I need to explain to anyone that the cost of living is high and in recent years has outpaced the growth of many people’s paychecks.

I believe the goal of our community and nation should be maximizing access to postsecondary education. I hope this is the focus of any future reform efforts. In any case, scholarships and financial aid advisory services of the sort the Scholarship Foundation of Santa Barbara provides are certain to remain in high demand for the foreseeable future.

A version of this commentary appeared in the Lompoc Record.