New Federal Loan Caps Prompt Bankruptcy Warning for Graduate Borrowers
Photo: TokenPost
New federal borrowing limits for graduate and professional students are drawing a bankruptcy warning from former U.S. Bankruptcy Court Judge Sarah Sharer Curley, who expects filings to increase as some students turn to private loans. Curley served on the U.S. Bankruptcy Court for the District of Arizona from 1986 to 2014. “The rate of bankruptcy filings will most likely increase,” she said. Her concern is that students facing narrower federal borrowing options may seek private credit. Public Law 119-21, signed July 4, 2025, began limiting federal graduate and professional borrowing on July 1, 2026.
Source: TokenPost
