Julea Thomas
Julea Thomas
From Birth to Emerging Adulthood: How the Changes of Federal Direct PLUS Loans are Another Hardship Greatly Affecting Gen Z
From Birth to Emerging Adulthood: How the Changes of Federal Direct PLUS Loans are Another Hardship Greatly Affecting Gen Z
Generation Z has experienced multiple major social, environmental and political events that have shaped their lives. They have seen the killing of George Floyd and the resurgence of the Black Lives Matter (BLM) movement with occurrences of police brutality. They have been traumatized by a multitude of school shootings. They have witnessed the attempted cessation of Deferred Action for Childhood Arrivals (DACA). They were greatly affected by the COVID-19 pandemic.
Now, they face a new hurdle in attaining higher education.
Starting July 1, 2026, due to the One Big Beautiful Bill Act (OBBA), the Graduate PLUS Loan program will be eliminated for new borrowers. Graduate students will have the option to utilize the Direct Unsubsidized Loan program, but are limited to $20,500 annually and a lifetime cap of $100,000. For professional students, the cap is $50,000 per year and $200,000 for a lifetime. Parent PLUS will also be affected. While the program will not be eliminated, a cap was enacted. The new cap will be $20,000 a year and $65,000 a lifetime, both per child, for borrowers after July 1, 2026.
Senior Nyanna Saunders, an aspiring psychology-based master’s candidate, feels this may limit her options for graduate schools due to her parents’ inability to pay out-of-pocket.
“Because I don’t get to choose a program that may be a better fit for me than another, due to the financial factor, I may not get the proper training that is needed to go into the field I want to pursue,” Saunders said.
These changes will make it far more challenging for individuals to pursue higher education and compete with the current job market. While many fields allow students to work directly after high school or undergraduate studies, advanced degrees are required for individuals aspiring to pursue fields such as medicine, law, therapy, social services and research.
Psychology Department Vice Chair, Dr. Natalie Watson-Singelton advised Saunders that going to a master’s program is the true foundation to being a therapist.
Along with the rise in housing prices and everyday expenses, this new financial pressure adds to Gen Z’s prevailing stress and trouble of achieving adulthood milestones. As many members of older generations critique Gen Z for struggling to hit adult milestones in contemporary social and political systems, a disconnect between the generations continues to broaden. Saunders predicts the changes to Federal Direct PLUS Loans may create a lack of empathy from elder generations, and that resentment from Gen Z may fester.
Given that members of Gen Z have experienced and continue to grow in the midst of tragedies, political challenges, and hardships, the world is looking for a change in American society to occur as the majority of Gen Z emerges into adulthood.
Generation Z has experienced multiple major social, environmental and political events that have shaped their lives. They have seen the killing of George Floyd and the resurgence of the Black Lives Matter (BLM) movement with occurrences of police brutality. They have been traumatized by a multitude of school shootings. They have witnessed the attempted cessation of Deferred Action for Childhood Arrivals (DACA). They were greatly affected by the COVID-19 pandemic.
Now, they face a new hurdle in attaining higher education.
Starting July 1, 2026, due to the One Big Beautiful Bill Act (OBBA), the Graduate PLUS Loan program will be eliminated for new borrowers. Graduate students will have the option to utilize the Direct Unsubsidized Loan program, but are limited to $20,500 annually and a lifetime cap of $100,000. For professional students, the cap is $50,000 per year and $200,000 for a lifetime. Parent PLUS will also be affected. While the program will not be eliminated, a cap was enacted. The new cap will be $20,000 a year and $65,000 a lifetime, both per child, for borrowers after July 1, 2026.
Senior Nyanna Saunders, an aspiring psychology-based master’s candidate, feels this may limit her options for graduate schools due to her parents’ inability to pay out-of-pocket.
“Because I don’t get to choose a program that may be a better fit for me than another, due to the financial factor, I may not get the proper training that is needed to go into the field I want to pursue,” Saunders said.
These changes will make it far more challenging for individuals to pursue higher education and compete with the current job market. While many fields allow students to work directly after high school or undergraduate studies, advanced degrees are required for individuals aspiring to pursue fields such as medicine, law, therapy, social services and research.
Psychology Department Vice Chair, Dr. Natalie Watson-Singelton advised Saunders that going to a master’s program is the true foundation to being a therapist.
Along with the rise in housing prices and everyday expenses, this new financial pressure adds to Gen Z’s prevailing stress and trouble of achieving adulthood milestones. As many members of older generations critique Gen Z for struggling to hit adult milestones in contemporary social and political systems, a disconnect between the generations continues to broaden. Saunders predicts the changes to Federal Direct PLUS Loans may create a lack of empathy from elder generations, and that resentment from Gen Z may fester.
Given that members of Gen Z have experienced and continue to grow in the midst of tragedies, political challenges, and hardships, the world is looking for a change in American society to occur as the majority of Gen Z emerges into adulthood.