A new survey reveals a troubling mismatch between graduate students' financial expectations and the realities of shrinking federal aid, threatening enrollment at US graduate programs already strained by declining international student numbers and tightening budgets.
File photo
Cost has become the dominant factor in graduate school decisions, with 60% of survey respondents ranking it as most important—surpassing program accreditation, last year's top concern. The shift signals a fundamental change in how adult learners are evaluating their educational options in an uncertain economic environment.
Price sensitivity has intensified dramatically, with nearly 40% of respondents considering annual costs above $10,000 "too expensive," while almost two-thirds are unwilling to spend more than $20,000 yearly. The findings suggest many programs may be pricing themselves out of reach for large segments of potential students.
The financial expectations clash with both rising costs and reduced aid availability. Average annual graduate school costs now exceed $20,000, according to the National Center for Education Statistics. Meanwhile, the One Big Beautiful Bill Act signed in July will eliminate the Grad PLUS loan program in July 2026 and impose stricter borrowing limits on Federal Direct loans for new borrowers.
The policy changes represent the most significant restructuring of graduate student financial aid in decades. Under the new rules, graduate students will face borrowing caps of $100,000 for most programs and $200,000 for professional degrees such as medicine and law.
"The hopes and expectations of today's adult learners are colliding with a financial aid system in a period of significant transition," said Val Fox, senior director at EAB's Adult Learner Recruitment division. "Federal aid sources are shrinking, and students with low credit scores may not qualify for private loans. This mismatch will make it even harder to sustain enrollment at a time when institutions need domestic adult learners more than ever."
