Over 76,000 people applied to law school in 2025, nearly 20% more than the previous year, according to the Law School Admissions Council (LASC). But many prospective J.D. students are worried about how the new federal budget (the “One Big Beautiful Bill Act”) will affect their ability to pay for law school.
This article explains the federal financial aid changes that will go into effect on July 1, 2026 and it links to resources for students looking for other scholarship opportunities.
We’re also excited to announce that we’re opening admissions for a Spring 2026 cohort for students who want to start their legal education at Stetson before the new bill takes effect. Admitted applicants will lock in tuition at the 2025-26 academic year rate.
The application period opens on Oct 1, 2025!
How the “One Big Beautiful Bill” Affects Law School Students
You’ve probably heard a lot about the new federal budget law and you’re wondering what it means for your future in higher education. Headlines about federal borrowing limits, loan repayment changes, and public service loan forgiveness can sound overwhelming when you’re trying to map out how to afford your degree.
While the rules of student borrowing are changing, every good lawyer knows the first step is to learn the rules, then figure out how to work with them (or even around them). Understanding the changes will help you make the smartest choices for your legal education.
New Limits on Graduate Student Loans Starting July 1, 2026
For graduate school students in general, the most significant change is the elimination of the Graduate PLUS loan, which has traditionally allowed students to borrow up to the full cost of attendance. That option disappears as of July 1, 2026.
For professional degree seekers—such as students attending law school or medical school—borrowing will be capped at $50,000 annually, with a lifetime maximum of $200,000, an amount that falls short of the total cost of many law and medical programs.
General graduate borrowing will also be capped at a lower amount: $20,500 per year, with a lifetime limit of $100,000.
The budget bill also establishes a new combined undergraduate and graduate lifetime borrowing maximum of $257,500 per person. For a student graduating college with the national average amount of student loan debt ($39,075), that would leave only $218,425 total available in federal student loans for all future graduate education. This could easily affect students seeking an LLM or a PhD after law school.
Fewer Repayment Options
Traditionally, one of the biggest advantages of federal student loans has been access to income-driven repayment (IDR) plans, which can ease the burden of monthly payments. For new lawyers just starting out, these plans often meant more manageable payments during early years of practice.
The “One Big Beautiful Bill Act” changes that landscape. Beginning July 1, 2026, new borrowers will have only two repayment choices: a standard repayment plan with a new timeline or the new Repayment Assistance Plan (RAP).
For the standard repayment plan, students get:
- 10 years for debt amounts less than $25,000
- 15 years for $25,000-$49,999
- 20 years for $50,000-$99,999
- 25 years for $100,000 or more
For law school graduates, the loss of multiple IDR options could result in significantly higher monthly payments compared to what earlier cohorts of lawyers faced.
Changes to Public Service Loan Forgiveness (PSLF)
Since 2007, many government and nonprofit employees working for causes in the public interest have been able to get their federal student loans canceled after 10 years of payments. However, in March, the President signed an Executive Order that limits access to Public Service Loan Forgiveness (PSLF) for people employed by certain “activist organizations.” The wording of the order suggests it could be used to deny PSLF for attorneys working with immigrants; with issues of diversity, equity, and inclusion; and with LGBTQ youth.
Scholarships to Pay for Law School
At Stetson, we’re committed to making your legal education attainable. Every student admitted to our J.D. program is automatically considered for multi-year merit-based scholarships and need-based aid without the need for a separate financial aid application.
The Faculty Committee on Admissions and Entering Awards reviews each applicant holistically, looking at academic excellence, personal achievements, and the potential to further the mission of the College of Law. Scholarships can range from partial to full tuition, and applicants are encouraged to share their unique backgrounds or circumstances within the application so the committee can fully understand their story.
That commitment continues once you’re here. Additional scholarships are available for students who excel after their first academic year, with opportunities for both full-time and part-time JD Flex candidates. These awards, often partial tuition, are renewable through graduation for students who meet the outlined conditions. Combined with other financial planning resources, they reflect Stetson’s ongoing investment in your future.
Learn more about our scholarship opportunities.
Announcing Stetson's Spring 2026 Cohort
For students eager to launch their law school education before the new student loan rules take effect, we’re excited to announce that we’re accepting applications for a Spring cohort in 2026!
Why apply for the spring instead of the fall? In addition to getting in before the new bill’s requirements take effect, you’ll get the chance to be part of a smaller, more tight-knit cohort and you’ll lock in your tuition at this year’s 2025-26 rate.
For more information, see the link below. The application period opens on Oct. 1 and ends on Nov. 15, and enrollment for admitted students begins in January.
Interested in learning more? Sign up below to be notified as soon as the application period opens.
Topics: Applying to Law School
