POST GRAD Act Protecting Our Students by Terminating Graduate Rates that Add to Debt Act
Impact
If passed, the POST GRAD Act could have significant implications for the financing of graduate education. By reinstating access to federal loans for graduate students, the bill would provide necessary financial resources that may allow more individuals to pursue advanced degrees. This move is particularly pertinent in an era where rising tuition fees and economic pressures discourage potential graduate students from furthering their education due to financial constraints. It will also impact student debt levels, providing a means to manage expenses through federal loans rather than private lending options.
Summary
House Bill 6077, referred to as the Protecting Our Students by Terminating Graduate Rates that Add to Debt Act (POST GRAD Act), aims to amend the Higher Education Act of 1965. This legislation seeks to reinstate the authority of the Secretary of Education to offer Federal Direct Stafford Loans specifically to graduate and professional students. The bill outlines the conditions under which this authority can be exercised, detailiing the termination point of certain loan rates that were previously suspended.
Contention
Discussions surrounding the POST GRAD Act may revolve around its financial implications for both the federal budget and student debt dynamics. Supporters argue that the reintroduction of these loans will foster accessibility to higher education, thereby benefitting the economy in the long term by creating a better-educated workforce. However, critics could voice concerns regarding the potential increase in national student debt, warning that easier access to loans might encourage additional borrowing without addressing underlying issues such as tuition inflation or the overall cost of higher education. These tension points reflect broader debates over student loan policy and educational funding strategies in the U.S.
Graduate Opportunity and Affordable Loans ActThis bill limits federal student loan borrowing for graduate and professional students.Specifically, the bill terminates the ability of a graduate or professional student to receive a Direct PLUS Loan. Institutions of higher education (IHEs) must notify their prospective and enrolled graduate and professional students that Direct PLUS Loans terminate on June 30, 2025.Additionally, the bill establishes the aggregate loan limit for Direct Unsubsidized Loans as $65,000 for a graduate student (in addition to the amount borrowed for undergraduate education) and $130,000 for a professional student (in addition to the amount borrowed for undergraduate education).The bill allows IHEs to set lower loan limits.