How Trump’s “One Big Beautiful Bill” Could Reshape Law School Debt

If you’re thinking about law school—or already enrolled—you need to understand what’s coming down the pipeline. Trump’s “One Big Beautiful Bill” (OBBB) has made it through Congress and could become law as early as this month. And if it does, the entire student loan landscape is about to change—dramatically.

We’re talking borrowing caps. The end of income-based forgiveness. A repayment system that could lock new grads into decades of financial pressure.

Let’s break down what this means for law students in plain English:

🚫 Federal Loan Limits: Say Goodbye to “Borrow What You Need”

Under the OBBB, law students will be capped at:

• $50,000 per year
• $200,000 total lifetime federal borrowing

Sounds like a lot? It’s not. Many law schools charge $70k+ per year in tuition alone—and that’s before rent, food, books, health insurance, bar prep, etc. So if your total cost of attendance runs over $200k (which it almost certainly will at private or T14 schools), you’re on the hook to fund the rest out-of-pocket or through private loans—which means higher interest rates, fewer repayment protections, and zero forgiveness pathways.

But even if your total borrowing stays under $200k, the $50k annual cap can still trap you. Example: if your first year costs $65k, you’re $15k short despite being well within the total limit. You’d be forced to either:

• Come up with that shortfall out-of-pocket,
• Take out a private loan (with worse terms), or
• Delay or disrupt your education.

It’s not just about how much you borrow overall—when you need it matters, too.

🔁 New Repayment Plans: Less Flexible, Less Forgiving

The current SAVE plan (income-driven, capped monthly payments, potential forgiveness after 20–25 years) gets tossed out. OBBB replaces it with just two options:

1. Repayment Assistance Plan (RAP): 1–10% of discretionary income, with no cap on monthly payments.
2. Fixed term repayment: Standard 10–25 year plans.

But here’s the kicker: no forgiveness after 25 years. That means every dollar you borrow, you pay back—plus interest. Public Service Loan Forgiveness (PSLF)? Still exists on paper, but will be far harder to access in practice, especially if you don’t qualify for the new narrow repayment plans.

⚖️ Public Interest Law Just Got Less Attainable

This bill hits public interest-bound students the hardest. If you’re planning to become a public defender, legal aid attorney, or policy advocate, here’s what to expect:

• High debt + low salary = dangerous math
• Loss of affordable income-based payment options
• Monthly payments that may not match your paycheck

Translation? Fewer law grads will feel financially able to pursue mission-driven legal work—at a time when we need them more than ever.

💡 What Future Law Students Should Do Right Now

If OBBB becomes law, the old financial playbook goes out the window. Here’s what you need to be thinking about instead:

• Stick to lower-cost schools or chase merit-based scholarships early and aggressively.
• Make a financial game plan now—can you realistically stay under the $200k cap and avoid getting caught by the $50k/year limit?
• Avoid private loans unless absolutely necessary. If you must, shop around and understand your rights.
• Track the bill. As of now, it’s passed the Senate and awaits a House vote. Changes are still possible, but you don’t want to be caught off guard.
• If you haven’t read it yet, check out this guide on negotiating law school scholarships—your financial future might depend on it.

Final Thoughts

Having passed Congress today, the “One Big Beautiful Bill” will reshape how law school is financed in the U.S.—with major downstream effects on who applies, who finishes, and what kind of work they pursue after graduation. Law school has always been a high-stakes investment. But if this bill becomes law, it’ll also become a much riskier one.

If you’re a future applicant and need help navigating school selection, scholarship strategy, or building a debt-conscious application that still hits hard—I’m here.

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