Washington, D.C., September 2, 2025
News Summary
The elimination of Grad PLUS loans threatens diversity in law schools by limiting financial access for low-income and marginalized students. Starting July 2026, new borrowers will no longer be eligible for these critical federally guaranteed loans. With rising tuition costs and restricted loan options, many potential students of color may be deterred from pursuing legal education, exacerbating existing disparities within the legal profession and impacting the necessary representation to address discrimination effectively.
Washington, D.C. – Financial barriers are set to significantly impact diversity in law schools as the elimination of Grad PLUS loans threatens the ability of low-income and marginalized students to access legal education. Starting July 1, 2026, new borrowers will lose eligibility for these federally guaranteed loans, which have played a crucial role in financing graduate education. The incoming law students for that year will be the last cohort able to utilize Grad PLUS loans, a change that has raised alarms among education advocates and law school administrators alike.
Law school tuition is already a substantial hurdle. Georgetown Law, for example, charges $83,576 per year, marking a nearly 5% increase from the previous year. Nationwide, the average cost of law school hovers around $50,000 annually, with top-tier institutions demanding between $70,000 and $90,000. To further complicate matters, students must also budget for additional living expenses, putting even more strain on their finances.
Graduate students currently borrow an average of $30,000 to $40,000 each academic year. With Grad PLUS loans no longer an option post-2026, students will be restricted to Stafford loans, which are capped at $20,500 annually. This funding is often insufficient to cover tuition and living expenses, forcing many low-income students to consider other financing options, which may include high-interest private loans or even the prospect of forgoing graduate education altogether.
As the costs escalate and options diminish, the demographic makeup of law school cohorts is at risk of becoming even less diverse. The legal education landscape is already predominantly White and affluent, with Black students making up only 8% of the student body, while Hispanic students account for 14%. Eliminating access to Grad PLUS loans may deter prospective students of color, thereby reducing diversity in legal professions and impacting the representation needed to tackle legal discrimination effectively.
Furthermore, without Grad PLUS loans, low-income students may gravitate toward lucrative “Big Law” positions as a means to repay larger debts, potentially undermining their interest in public service roles. These decisions are not just personal; they will impact the legal community for years to come, limiting the diversity of legal perspectives necessary for equitably addressing issues faced by underserved communities.
In light of these changes, law schools are urged to reevaluate their financial aid structures. Administrators should explore avenues to adjust scholarship funding, potentially shifting from merit-based systems to need-based support frameworks that better serve a diverse student population. Schools must prepare for the incoming restrictions on federal loans and consider how they can maintain diverse admissions while supporting their students financially.
While current law students will not be immediately affected—until their programs exceed the standard three years—the future landscape of law school financing is on a precarious path. Changes arising from new policies could limit loan eligibility based on post-graduation earnings, adversely affecting institutions specializing in public interest law.
FAQs
What are Grad PLUS loans?
Grad PLUS loans are federally guaranteed loans designed to help graduate students cover educational expenses, providing additional funding beyond other federal loans.
Why are Grad PLUS loans being eliminated?
As part of President Trump’s “Big Beautiful Bill,” Grad PLUS loans will no longer be available for new borrowers beginning July 1, 2026.
How does the elimination of Grad PLUS loans affect diversity in law schools?
The removal of these loans may discourage low-income and marginalized students from pursuing law degrees, thus reducing diversity within the legal profession and undermining the representation of varied perspectives.
What alternatives do law students have for financing their education?
Students may turn to Stafford loans, which are capped at $20,500 annually, or higher-interest private loans, both of which may not sufficiently cover total educational costs.
What can law schools do to adapt to these changes?
Law schools are encouraged to reassess their financial aid structures and potentially shift from merit-based scholarships to need-based support to better serve a diverse student body.
| Feature | Current Situation | Post-Elimination |
|---|---|---|
| Tuition Average | $50,000 per year (up to $90,000 for top schools) | Same, without sufficient loan options |
| Grad PLUS Loan Eligibility | Available to all graduate students | No longer available for new borrowers after July 2026 |
| Stafford Loan Cap | $20,500 per year | Same |
| Affected Student Demographics | 8% Black, 14% Hispanic | Potential decrease in diversity |
| Funding Alternatives | Mix of federal and private loans | Increased reliance on private loans |
Deeper Dive: News & Info About This Topic
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Additional Resources
- U.S. News: Law Schools Offering Tuition Help
- Above the Law: Intel Drops Funding HBCU Legal Pipeline
- Business Journal Daily: Mahoning County Bar Foundation Awards Scholarships
- ABA Journal: Law Schools React to Financial Aid Changes
- St. Louis Post-Dispatch: Tuition and Financial Aid News
- Wikipedia: Legal Education in the United States
- Google Search: Grad PLUS Loans
- Google Scholar: Diversity in Law Schools
- Encyclopedia Britannica: Law School
- Google News: Law School Financial Aid
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