State fact sheets show how ending Grad PLUS loans will widen funding gaps, increase private borrowing, and strain graduate education and workforce pipelines
July 23, 2026 by Noppakan Sirikul, Tionna Ellis, Tihirah Ruffin, Brianna Huynh 
The elimination of Grad PLUS loans, effective July 1, 2026, will disproportionately impact certain states, increasing pressure to address financial gaps in graduate and professional education. These fact sheets focus on Ed Trust priority states — California, Louisiana, Michigan, Tennessee, Texas, Massachusetts, and New York — to better understand how changes in federal graduate borrowing policy may affect students, institutions, and state higher education systems. Each state snapshot highlights where the reduction in federal support will have the greatest impact and which institutions will need to depend more on state-level support. Funding gaps may increase dependence on private loans, alter enrollment patterns, and threaten workforce development in fields that require advanced credentials. This specific state-level analysis highlights how consequences at the national level will manifest at the local level.
For additional context, read our blog on “How Federal Graduate Loan Limits Will Impact Borrowers and Shift Pressures to States Blog” and our brief on how “New Loan Limits Threaten Graduate Education Access and Affordability.”
You can also explore our interactive Tableau dashboard on the Graduate Borrowing Landscape to see how Grad PLUS borrowing patterns vary across states and institutions nationwide.
The authors are higher education research interns.
June 23, 2026 by Victoria Jackson The elimination of Grad PLUS loans will limit access to advanced degrees and drive many students toward riskier private loans
April 02, 2026 by EdTrust Given the impending threats to the future of higher education, there are opportunities for states to make policy and resource decisions that can reduce the potential impact and scope of cuts
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