The One Big Beautiful Bill Act (known as “Big Beautiful Bill” or BBB), set to take effect in July 2026, introduces significant challenges for future law students. The legislation brings higher financial pressures, stricter student loan borrowing limits, and greater uncertainties surrounding the law school journey. Here’s an in-depth look at the critical issues students and parents need to be aware of.
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- The Current Student Loan Playing Field
- New Student Loan Caps and Offerings
- Income-Driven Repayment and Student Loan Forgiveness Overhaul
- Is Law School Still Feasible?
- What Future Law Students and Families Can Do Now
The Current Student Loan Playing Field
According to the Education Data Initiative, the average total cost of law school is $217,480. Most law students rely heavily on federal loans and loan repayment programs to finance the cost of law school—this includes tuition, fees, books, housing, and general living expenses.
- Undergraduate federal loans:
- Total borrower limit of $31,000-$57,500 (including subsidized and unsubsidized loans) for a 4‑year degree, depending on student financial dependency status
- Graduate/Professional loans:
- Direct Unsubsidized Loans: Schools determine the amount you can borrow based on your cost of attendance and other financial aid you receive.
- $20,500 annual loan limit
- Grad PLUS: Covers full cost of attendance. No real cap.
- Income-driven repayment (IDR) Plans: PAYE, IBR, SAVE
- Direct Unsubsidized Loans: Schools determine the amount you can borrow based on your cost of attendance and other financial aid you receive.
- Public Service Loan Forgiveness (PSLF): Forgives debt after 10 years of qualifying service and payments.
- Parent PLUS: Parents can cover undergrad student COA via federal support.
New Student Loan Caps and Offerings
Remember: All changes apply to new loans disbursed for the 2026‑27 academic year onward.
Undergraduate Borrowing
- Pell Grant: Students will not be eligible for a Federal Pell Grant if they receive grant aid from non-federal sources that equals or exceeds the cost of attendance.
Graduate Student Loans
Graduate (non‑professional):
- Annual cap: $20,500
- Total cap: Lifetime maximum of $100,000
Professional (e.g. law school):
- Annual cap: $50,000
- Total cap: $200,000
Total Student Loan Lifetime Cap: $257,500 (doesn’t include Parent PLUS loans)
PLUS Loans
Parent PLUS loans are capped at $20,000 per year, with a lifetime max of $65,000 per student. Graduate PLUS loans are eliminated for new borrowers starting July 2026.
However, if you’ve already taken out a Grad PLUS loan, you can continue borrowing under the old program terms. This grandfathered access extends for the remainder of your current program for up to three academic years past July 2026. So, if you’re in the class of 2029, that grandfathering applies.
💡 Impact
Undergraduate students may graduate with more debt, adding pressure on families already struggling or relying on scholarships. Additionally, assuming that the average cost of law school is $217,480, the loan ceilings still leave ~$117,480 that law students must cover through other means.
The elimination of Graduate PLUS loans might force students to turn to private loans to fund their law school education with higher interest, limited consumer protections, and no federal repayment benefits.
Income-Driven Repayment and Student Loan Forgiveness Overhaul
The BBB sunsets all current IDR plans (IBR, PAYE, SAVE) by July 2026. Borrowers must choose between:
- Standard Plan: Fixed payments over a set time. Payments are determined by the loan amount and will span 10-25 years.
- Repayment Assistance Plan (RAP): A new IDR-style plan with a $10 minimum monthly payment and 30-year forgiveness.
Is Law School Still Feasible?
The change in student loan borrowing presents future law students with new challenges starting in undergrad. Capped borrowing of Parent PLUS loans might not cover undergrad expenses, especially for families with multiple college students. Students without significant family support or scholarships may need to incur private debt sooner.
Even the lifetime cap on professional lending for law school may not cover the full cost of attendance, leaving students with large gaps, especially at private schools. For eligible students who could’ve relied on Grad PLUS loan support, that option is also no longer there. Additionally, private loans often require co-signers, have higher fixed or variable interest rates, and exclude students with poor credit.
What Future Law Students and Families Can Do Now
Although the BBB introduces new student loan caps and eliminates major federal aid pathways, there are still powerful tools students can leverage, including scholarships, choosing lower-cost schools, and building a strong application that attracts merit awards.
Focus on Your LSAT Score and GPA
LSAT score and GPA have always been two of the most significant factors in law school admissions. However, now it’s even more important to ensure your stats are competitive. You are undoubtedly more than your numbers, but they are often an admissions committee’s first impression of you. A strong GPA signals consistency, discipline, and your ability to succeed in an academic environment. Meanwhile, a high LSAT score demonstrates that you can handle the rigor of law school and thrive under pressure, skills that directly translate to success on the bar exam and in legal practice.
Together, they can help you:
- Earn merit-based scholarships. Some law schools automatically award financial aid to top applicants based on academic and LSAT performance—no extra application required.
- Stand out in a competitive cycle. GPA and LSAT scores remain among the strongest predictors of academic success in law school. Although admissions committees consider your entire application, your stats play a significant role in law school admissions.
- Unlock financial flexibility. With the new loan caps, reducing your financial burden from the start is critical. A competitive application can translate into offers with tuition discounts or full rides. It’s not just about getting in—it’s about getting through with fewer financial burdens holding you back.
Maximize Law School Scholarships
Many law schools offer scholarships or grants to accepted students, with some even covering full tuition. However, law school admissions has become increasingly competitive cycle after cycle, and obtaining these limited scholarships increases the pressure.
Law Schools With Full Scholarships
| Law School | Median LSAT Score | Median GPA |
| UCLA School of Law | 170 | 3.95 |
| New York University School of Law | 172 | 3.91 |
| University of Pennsylvania Law School | 172 | 3.93 |
| Arizona State University Law School | 165 | 3.9 |
| University of Texas at Austin School of Law | 171 | 3.89 |
| Duke Law School | 170 | 3.89 |
| University of Michigan Law School | 171 | 3.86 |
Further Reading
💰 Law Schools That Offer Full-Ride Scholarships
Apply Broadly
Law school is an investment, but it doesn’t have to come with an overwhelming price tag. By focusing on lower-cost public institutions, students can make their financial aid go further. Additionally, many law schools provide more affordable tuition rates for in-state residents.
Final Takeaways
The new budget bill has reshaped the student loan landscape for law school in a major way. With federal loan caps and the end of Grad PLUS loans, funding your legal education may look different than it did even a year ago. However, that doesn’t mean law school is out of reach. It just means the strategy has to change.
Now more than ever, your LSAT score, GPA, and scholarship planning will play a key role in how you approach this next chapter. Your law school list might look different and applying will be far more intentional. However, staying informed, proactive, and realistic about cost and funding options will put you in a much stronger position to apply, get accepted, and graduate with more control over your financial future.
And remember, you’re not alone. You have families, advisors, peers, and the Blueprint LSAT community ready to support your journey. There’s always someone ready to guide you, urge you forward, and remind you of the incredible impact your future self will have.
No matter where you are in the pre-law process, Blueprint LSAT can help you reach your full potential! Blueprint has helped thousands of students increase their LSAT scores by 15 points on average. Whether it’s in a Live course led by expert Blueprint LSAT instructors, in a Self-Paced Course that gives you total control over your schedule and studying, or one-on-one with a tutor, we have the LSAT prep that fits your learning style.
