S. 308 — Graduate Opportunity and Affordable Loans Act

This section revises Federal Direct Loan limits and authorities for graduate and professional students by— (1) limiting the post-July 1, 2012, termination of subsidized Federal Direct Stafford Loans for such students and the corresponding increase in annual unsubsidized Stafford loan amounts to periods of instruction ending June 30, 2025 (previously, beginning July 1, 2012, with no end date); (2) establishing, for periods of instruction beginning July 1, 2025, annual Federal Direct Unsubsidized Stafford Loan limits of $20,500 for graduate students (i.e., postbaccalaureate certificate, master's degree, or doctor's degree students) and $40,500 for professional students (i.e., doctor's degree-professional practice students such as medicine or law), and aggregate limits of $65,000 and $130,000 respectively (in addition to undergraduate amounts), from $20,500 annual for most graduate students ($40,500 for certain health professions programs) and $138,500 aggregate (including undergraduate amounts); (thus, lowering aggregate limits for non-professional graduate students while raising annual limits for non-health professional students and aggregate limits for professional students), with a phase-out allowing certain 2024–2025 award year borrowers to use prior limits for 2025–2026 if not graduated; (3) terminating Federal Direct PLUS Loans for graduate and professional students for periods of instruction beginning July 1, 2025 (previously available with no annual or aggregate limit); (4) requiring institutions of higher education to notify prospective and enrolled graduate and professional students within 30 days of enactment that Federal Direct PLUS Loans end for such students after June 30, 2025; and (5) authorizing an eligible institution's financial aid administrator to prorate or limit Direct Loan amounts for students in programs with periods of instruction beginning July 1, 2025, if applied consistently to all students entering that program.