The Pennsylvania Higher Education Assistance Agency has introduced new loan programs to help graduate students in Pennsylvania cover tuition gaps following the federal elimination of Graduate PLUS Loans. These programs offer flexible, career-focused lending with low fixed interest rates and repayment options tailored to students’ future earning potential.

Summary:

PHEAA expands PA Forward and Keystone Medical loan programs
Graduate PLUS Loans eliminated by One Big Beautiful Bill Act
New loans offer low fixed rates and flexible repayment options

The average cost of a master’s degree in the U.S. (PA) is around $62,820 and depends on the major and length of program. A graduate student can borrow $20,500 (law and medical professional students can borrow $50,000) in Direct student loans through the federal government—and they are encouraged to take this loan first if they must borrow. But what happens if that isn’t enough to cover the cost of the program and living expenses, and the student does not have access to scholarships or out-of-pocket funding? 

Graduate students used to be able to borrow Graduate PLUS loans, a federal program available to borrowers with “no adverse credit,” solidifying access and opportunity to program completion and higher wages. But with the elimination of Graduate PLUS loans in the One Big Beautiful Bill Act (OBBBA), many of those looking to pursue advanced degrees are now going to be scrambling to find a way to pay tuition bills. 

As a representative of the Pennsylvania Higher Education Assistance Agency (PHEAA), I will always tell students and families to seek out free money first and plan, plan, plan! Track down those graduate assistantships, search for graduate scholarships, find programs with a master’s degree baked into the bachelor’s degree (aka 3+2 programs), or even get a job that offers tuition assistance benefits and get someone else to pay for further education. While working and going to school is difficult, it can certainly be accomplished. 

But, once they’ve exhausted free-money options, graduate students are probably looking to private education loans. Financing is not a one-size-fits-all approach to paying for education, and students are encouraged to shop around to find the loans that offer the best rates, fees, and repayment terms to fit their needs. Non-profit lenders should be considered first and, in some cases, even at the graduate level, a creditworthy co-signer may be required; however, borrowers should pay attention to the results of the OBBBA changes—an opportunity for lenders to compete for your business and offer rates and benefits that will increasingly become more competitive.   

To help students affected by the elimination of the Graduate PLUS Program, PHEAA recently expanded our loan programs to include the PA Forward and Keystone Medical and Health Professional Loans. Built to fill tuition gaps — these loans offer flexible, career-focused lending based on future earning potential rather than current income alone. Both programs provide low, fixed interest rates, no fees, and flexible repayment options, including extended deferment during residency. 

 At a time when federal changes are creating real barriers, these loans ensure students aren’t forced to abandon their path. Without a doubt, there is a lot of noise in the higher education funding space and it is easy to become overwhelmed. Students and families should talk to their financial aid counselors regarding all options to pay for education and use PHEAA as a trusted resource to help navigate this ever-changing landscape. Students can learn more or apply online at pheaa.org. 

Access to higher education opportunities is key to economic stability and mobility. Lifelong learning and creating a career tapestry are the pillars of building and sustaining what success means for everyone. While changes in how we pay for education may be inevitable in the near term, let’s get creative to ensure that no one is left behind.  

Kimberly McCurdy, Ph.D. is Private Student Loan Account Executive at PHEAA

The Pennsylvania Higher Education Assistance Agency (PHEAA) was created by the Pennsylvania General Assembly in 1963 to provide affordable access to higher education for PA students and families.

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