October 22, 2026

Caps on federal student loans and the elimination of Graduate Plus loans will make it harder to afford college and will impact enrollment and programs at SUNY schools, UUP President Fred Kowal said in testimony Oct. 20 before a joint hearing of the New York Assembly Standing Committees on Higher Education and Banks.

The committees convened the hearing to hear testimony from representatives of SUNY, UUP, CUNY, the Associated Medical Schools of New York, the Institute for College Access and Success, the NYU Silver School of Social Work, Legal Services NYC and others. Speakers included students and financial aid experts.

New caps on Parent Plus loans, caps on unsubsidized federal loans for graduate and professional programs and the elimination of Graduate Plus loans—which took effect July 1— will make it even more difficult for students and families to pay for a SUNY education and will impact enrollment, campus revenue and programs at SUNY colleges and universities across the system, Kowal testified.

“Taken together, the federal lending changes hinder people’s ability to seek higher education,” Kowal said. “This is counterproductive as these changes will likely mean more students opting not to attend college at all or to drop out because they cannot afford to complete their degree.”

The changes also include the removal of dozens of graduate-level programs from the Department of Education’s list of professional degrees, a change that limits federal loans to $20,500 per year and $100,000 total for all but 11 core professional programs. Those degrees, which include medicine, dentistry and law, have higher limits ($50,000 yearly, $200,000 total). In June, a federal judge issued a preliminary injunction blocking DOE’s reclassification; the federal changes were set to take effect July 1.

Beyond the impact on students, the changes will mean fewer people entering high-needs fields in health care, teaching and technology. Fewer students enrolling in these programs also threatens the financial stability of SUNY campuses, Kowal said.

“New York needs to stand up for higher education and help fill the gaps left by the changes to federal student loans by the Trump administration,” said Kowal. “Otherwise, our students, staff and communities will be irreparably harmed by these irresponsible, shortsighted changes.”

The hearing was led by Assemblymember Alicia Hyndman, D-Queens, the chairperson of the Committee on Higher Education; and Assemblymember Clyde Vanel, D-Queens, chairperson of the Committee on Banks.

Kowal testified at the hearing alongside Lola Brabham, president of the Commission on Independent Colleges and Universities; Benjamin Wade, vice-chair for legislative affairs in the CUNY University Student Senate; and Donna Stelling Gurnett, president of the Association of Private Colleges.

Vanel asked the speakers what they were seeing and hearing on campuses as the borrowing changes take effect

Kowal said UUP members at colleges where finances are already tight are worried lower enrollment might hurt their institutions. The university centers face a “marked fall-off” in graduate programs already seeing fewer students because fewer international students are coming to study.

“These are programs that had been bringing in money and providing needed and important research,” Kowal said.

Kowal offered several recommendations as to how the state can aid SUNY students and campuses, including increasing direct state aid appropriations—which the governor and Legislature have supported over the last four years.

UUP also supports the creation of a new, state-administered loan program for graduate students; Kowal thanked Hyndman for introducing legislation—along with state Sen. Toby Ann Stavisky—to create the program. Kowal also called for the state to increase funding for its successful Educational Opportunity Program.

“The federal government’s move to place caps on student loans and end Graduate Plus loans will assuredly impact SUNY students and institutions in a negative way,” Kowal said. “Making a true investment in SUNY by increasing direct aid to campuses, supporting EOP and establishing a new graduate loan program will go far in ensuring SUNY’s financial stability and making a SUNY education more affordable and accessible.”