Federal student aid changes set to take effect July 1 are introducing new loan limits, prompting some Nevada students to rethink their college and career plans.
The One Big Beautiful Bill Act introduces sweeping updates to federal student aid, including reduced loan limits for parents and graduate students, the elimination of Grad PLUS loans, and the rollout of a new Repayment Assistance Plan to replace existing income-driven repayment options. The changes also tighten Pell Grant eligibility by factoring in family size.
Alejandro Quevedo, a student at Clark High School and a United Way Southern Nevada Democracy Fellow, said these changes are influencing his college decision.
“I did get a full ride, but one of the things I’ve been looking at is I need to stay here to support my family,” Quevedo said. “But also with financial institutions changing, I mean, tuition rates can spike up rapidly out of nowhere.”
Quevedo, who comes from a first-generation family and plans to major in political science, said he applied to schools in Oregon and Indianapolis but is now considering staying in-state to help support his immigrant parents.
Impact on graduate students
Grad PLUS loans will now carry new caps of around $20,000. For professional students—including teachers, attorneys, doctors, and dentists—annual loan limits will be set at $50,000, with a maximum total of about $200,000 over the course of their studies.
Henry Rosas, external affairs manager at United Way of Southern Nevada, said these changes will impact the state’s ability to train and recruit professionals.
“When we think about the price of tuition and the cost of living, that for many of these key professions that we have a shortage of here in Southern Nevada, it’s definitely going to both hurt our ability to train and recruit many of the professions that we need,” Rosas said.
Rosas said students will have to cover the remaining costs through predatory private loans, family support, taking on additional jobs, or by choosing not to pursue higher education or professional degrees altogether.
Rosas, who plans to attend law school in the fall, said his yearly tuition is about $125,000. With federal loan caps at $50,000 and some institutional aid, he still faces about $40,000 per year that he must cover.
“These policies that are being implemented are affecting people now, and really having to make people face the hard choices of, you know, how do I spend my time in school,” he said.
Students weighing options
Quevedo said he received a Max Pell Grant and scholarships through the Nevada Prepaid Education Fund and external sources like Scholarship 360, but he will still pay around $5,000 out of pocket.
“The loan amounts have exceeded, and there’s only a cap limit of 50,000 now,” Quevedo said. “So it’s now making me decide where they’re, do I stay undergrad and save up money so I can further, when I do go into my graduate school, will they have these savings to be able to pay off these loans.”
Quevedo said he will likely take on another job or work longer hours to balance school and income.
“College should be accessible no matter what financial aid or what finances you have,” Quevedo said. “And unfortunately, that’s not the case right now because college is more of a risk rather than an opportunity.”
Rosas said he is passionate about labor and employment and ensuring immigrant communities are respected and supported.
“What these new loan caps represent is really restricting that American dream for myself,” Rosas said. “I have to now think critically about how I spend my summers, what opportunities can I pursue.”
United Way of Southern Nevada partners with several nonprofits across the valley to provide mentoring, scholarships, and one-on-one support for families preparing for college. The organization also runs its own scholarship program through its Women United group.
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