Graduate Opportunity and Affordable Loans Act
The legislative changes brought forth by SB1968 will significantly impact current and prospective graduate and professional students seeking financial assistance through federal loans. The termination of the Federal Direct PLUS Loan option for these students will alter the landscape of available funding. This could raise concerns about accessibility to education for those requiring additional funding or support beyond the limits established in the bill. Institutions of higher education will be required to inform their students about these upcoming changes, particularly the discontinuation of PLUS Loans by June 30, 2024.
SB1968, also known as the Graduate Opportunity and Affordable Loans Act, seeks to reform federal student loan offerings for graduate and professional students. The bill proposes modifications to the Federal Unsubsidized Stafford Loans, specifically adjusting annual and aggregate limits starting July 1, 2024. Graduate students will be allowed to borrow up to $20,500 annually, while professional students can borrow up to $40,500 annually. Furthermore, the aggregate borrowing limit will be set at $65,000 for graduate students and $130,000 for professional practice students, inclusive of previously accrued undergraduate loans.
One of the notable points of contention surrounding SB1968 is the potential implications this bill holds for students relying on loans to finance their education. Critics may argue that reducing the availability of loan options, particularly the termination of PLUS Loans, might hinder access to graduate and professional education for some students. On the other hand, proponents assert that these changes are necessary to limit student debt and encourage responsible borrowing behaviors. Ultimately, the bill aims to create a more structured financial aid process for graduate education, though not without sparking debate among legislators and education advocates.