According to CoinMeta, states are expanding student loan options in response to the implementation of new federal borrowing limits. However, consumer advocates warn that state student loans are more akin to private loans, and borrowers should approach them with caution. With the increase in federal borrowing restrictions, some states such as Connecticut, Massachusetts, Minnesota, Pennsylvania, and Rhode Island have begun to expand their loan offerings. Under the new regulations, the federal loan limit for graduate students is $20,500 per year, and students pursuing certain professional degrees can borrow up to $50,000. The interest rates on state loans vary by state and can exceed 10%. In some states, the interest rates on these loans are even lower than those of the federal government’s Parent Plus loans. Consumer advocates suggest that students should first seek out free funding such as scholarships and grants before considering state loans.