October 31, 2025
In July 2025, the Trump administration signed the “One Big Beautiful Act,” which eliminated of the Grad PLUS loan and will change how graduate and professional students finance their education.
Applications to business and law schools are increasing among Gen Z graduates who are struggling to find employment. Unemployment is rising across the country, and companies such as Target and Amazon have announced the layoffs of thousands of their employees this week alone.
More layoffs are expected as the shift to AI tools, which automates and reduces the need for certain roles.
Similar to the financial crisis of 2008, the youngest generation in the workforce is now safeguarding themselves against the exhausting job search and technological advancements by obtaining higher degrees.
In a report from Fortune, applications to American Bar Association-accredited law schools are 33% larger than it was this time last year, according to data from the Law School Admission Council.
“Another metric that we watch closely is the number of first-time LSAT test takers, and how that number may be trending compared to previous years,” LSAC writes. “Looking at the 2024 August and September tests, the number of first-time test takers is up 25% compared to the same two tests last year — an increase of nearly 5,000 first-time test takers.”
But it doesn’t stop there. Applications to graduate management education (GME) programs (MBAs and other business master’s degrees) are steadily rising in 2025. In 2024, GMAC’s report found that applications to GME programs were up by 12%. In 2025, the growth increased by an additional 7%. Applications to MBA programs from women surpassed those from men in 2025, according to the report.
Gen Z, Professional Students Face Financial Battle Under Trump Administration
The unemployment rate for Gen Z is approximately 8.2%, which is significantly higher than the national average of around 3.5%, and at its highest point since early 2021, according to Zogo.
One challenge for students seeking to pursue a higher degree is that they will no longer have access to the federal Graduate PLUS Loans for new borrowers, effective July 1, 2026. In July 2025, the Trump administration signed the “One Big Beautiful Act,” which eliminates the Grad PLUS loan and will change how graduate and professional students finance their education.
Federal borrowing for graduate students will be capped at a lower limit. Graduate students can borrow up to $20,500 per year, with a lifetime maximum of $100,000. Professional students, such as those applying to law or medical school, are eligible to borrow up to $50,000 per year, with a lifetime maximum of $200,000.
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