In response to recent federal legislation capping student loans, law schools across the United States are implementing new financial aid strategies to bridge the resulting funding gaps for their students.
The One Big Beautiful Bill Act (OBBBA), enacted on July 4, 2025, introduced significant changes to federal student loan programs, effective July 1, 2026. Notably, the Grad PLUS loan program was eliminated, and annual borrowing limits for professional students, including those in Juris Doctor (JD) programs, were set at $50,000, with a lifetime cap of $200,000. This shift has left many law students facing shortfalls, as the cost of attendance at numerous institutions exceeds these new limits.
To address these challenges, several law schools have initiated programs to provide additional financial support:
- University of Kansas School of Law: The Jayhawk Endowment Law Program for Students (J-HELPS) offers loans at a fixed 5% interest rate. This program is designed to assist students who have exhausted federal loan options and may not qualify for private loans due to credit requirements. ([insidehighered.com](https://www.insidehighered.com/news/students/financial-aid/2026/03/26/law-schools-become-lenders-response-obbba-loan-limits?utm_source=openai))
- Washington University in St. Louis School of Law: The WashU Law Supplemental Loan provides institutionally funded loans with a 7.5% interest rate, aiming to support students unable to secure private financing. ([insidehighered.com](https://www.insidehighered.com/news/students/financial-aid/2026/03/26/law-schools-become-lenders-response-obbba-loan-limits?utm_source=openai))
- Santa Clara University School of Law: The PLEDGE Scholarship guarantees an annual $16,000 scholarship to each full-time JD student, effectively reducing tuition costs and mitigating the impact of federal loan caps. ([jdjournal.com](https://www.jdjournal.com/2025/09/22/law-school-responds-to-loan-limits-with-16000-tuition-offset-for-students/?utm_source=openai))
These initiatives reflect a broader trend of law schools proactively seeking solutions to ensure that financial constraints do not impede access to legal education. By offering institutionally funded loans and scholarships, these schools aim to provide more accessible financing options, particularly for students who may face challenges in the private lending market.
As the financial aid landscape continues to evolve, law schools are likely to explore additional measures to support their students. Prospective and current law students are encouraged to consult their institutions’ financial aid offices to understand the resources available to them in light of these changes.