Reversal on Graduate Lending

The GOP’s proposed update to the law governing higher education would force a U-turn for long-standing federal policies on graduate student lending.

Students who pursue graduate degrees have been allowed to take out an unlimited amount in federal student loans since Congress authorized the Grad PLUS program in 2005. But the legislation proposed last week by Representative Virginia Foxx, the North Carolina Republican who chairs the House education committee, would cap annual borrowing amounts for grad students at $28,500 annually. The bill also would change benefits for borrowers by altering income-driven repayment options and eliminating Public Service Loan Forgiveness.

Republicans said the proposed changes would put pressure on institutions to keep costs down and fits with their broader vision to simplify the federal student aid system.

But advocates for graduate education warned that the bill would limit less-well-off students’ access to advanced degrees. And they said public service-oriented fields in particular would be hurt by limits in federal loans and the end of PSLF.

Read more at Inside Higher Ed: https://www.insidehighered.com/news/2017/12/11/house-gop-higher-education-overhaul-would-cap-graduate-lending-and-end-loan