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UCLA Data Brief Finds New Federal Loan Caps Could Further Narrow the Path to Law School for Latino Students
New analysis shows Latino law students relied more heavily on federal loans, received less grant aid, and were more likely to turn to credit cards to finance legal education.

LOS ANGELES (April 30, 2026) — New federal limits on student borrowing could make law school less accessible for Latinos and further weaken representation in the legal profession, according to a new brief from the UCLA Latino Policy and Politics Institute (LPPI). Drawing on data from the 2019–2020 National Postsecondary Student Aid Survey, the analysis finds that Latino law students were more likely than non-Latino students to rely on federal loans to pay for school, received less grant aid, and were more likely to use credit cards to cover educational costs. 

Under the new policy set to take effect on July 1, 2026, students in professional degree programs, including law, will face a $50,000 annual federal loan cap and a $200,000 total borrowing limit. The law also eliminates the Graduate PLUS loans, which have long helped students cover costs not met through other financial aid. 

With Latinos making up 19% of the U.S. population in 2025, but only 6% of lawyers nationwide, the new borrowing restrictions could make the path to becoming a lawyer even harder for students who already depend more heavily on debt to get there. The average cost of attendance for law school in 2023–2024 was $217,000, already above the new $200,000 total federal borrowing cap for professional degree programs.

 Among the data brief’s findings:

• Latino law students attended lower-cost law schools but still faced substantial expenses. During the 2019–2020 academic year, Latino students attended law schools with a median cost of attendance of $42,000, compared with $59,000 for non-Latino students. 
• Latino law students were more likely to rely on federal loans. Eighty-four percent of Latino law students used federal loans to finance their education, compared with 65% of non-Latino students. 
• Latino students borrowed more in federal loans overall. The median amount borrowed by Latino law students was $38,000, compared with $31,000 for non-Latino students. 
• Latino students were more likely to rely on Graduate PLUS loans. Half of Latino law students used Graduate PLUS loans, compared with 41% of non-Latino students, even as that program is now being eliminated under the new law. 
• Latino students were less likely to receive grants. Less than half of Latino law students, 48%, received grants, compared with 72% of non-Latino students. 
• When Latino students did receive grants, they received smaller amounts. Latino law students received a median of $15,000 in grants, compared with $19,000 for non-Latino students. 
• Latino students were more likely to rely on credit cards to cover law school costs. One-third of Latino law students used credit cards to pay for tuition and fees, compared with 16% of non-Latino students. 
• Latino students were less likely to receive support from family or friends. Forty-four percent of Latino law students reported receiving financial help from family, friends, or spouses, compared with 53% of non-Latino students. 

“Federal student aid has long been one of the few pathways that allows students to pursue professional degrees without coming from generational wealth,” said Rosario Majano, research analyst at LPPI and co-author of the data brief. “Our findings show that Latino law students were already more likely to rely on federal borrowing to finance law school. As those options narrow, the concern is not only that legal education becomes less affordable, but that the pipeline into the legal profession becomes less accessible for students whose experiences and perspectives are badly needed.”

“Access to legal education helps shape who will be able to serve communities in the years ahead,” said Arturo Vargas Bustamante, faculty research director at LPPI and co-author of the brief. “When financial barriers rise for Latino students, the consequences extend beyond the classroom. They affect the future of the legal workforce and the availability of culturally and linguistically responsive legal support in the institutions and communities that need it most.”

The data brief emphasizes that Latino lawyers are more likely to work in nonprofit and government settings, where they often serve lower-income communities, and that reducing barriers to legal education matters not only for students themselves, but for the communities that depend on accessible representation. 

Read the full data brief here.

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About UCLA Latino Policy and Politics Institute:

The UCLA Latino Policy and Politics Institute is a non-partisan research institute that seeks to inform, engage, and empower Latinos through innovative research and policy analysis. LPPI aims to promote equitable and inclusive policies that address the needs of the Latino community and advance social justice. latino.ucla.edu.