Impending Elimination of Grad PLUS Program Raises Concerns for Local Colleges

Strategic Insights -

The impending elimination of the federal Grad PLUS program, which helps cover the cost of attending graduate and professional schools, has left local colleges waiting to see what the impact will be. According to Sarah Austin, a policy analyst with the National Association of Student Financial Aid Administrators, direct loans have lower interest rates but come with annual and total limits. Current borrowers will be eligible to continue borrowing from the Grad PLUS program for an additional three years or until their current graduate or professional program is completed.

Key Takeaways:

  • The Grad PLUS program, which helps cover the cost of attending graduate and professional schools, is set to be eliminated, leaving local colleges with concerns about the impact on student attendance.
  • Direct loans have lower interest rates but come with annual and total limits, making them less suitable for students who need to borrow more than the limits allow.
  • Current borrowers are eligible to continue borrowing from the Grad PLUS program for an additional three years or until their current graduate or professional program is completed.
  • Federal loans offer borrower protections, including income-driven repayment plans, forbearance and deferment options, and loan forgiveness options, which may not be available through private loan programs.
  • The elimination of the Grad PLUS program may reduce students' willingness to attend high-cost programs like law school or medical school, as private loans may not offer the same level of loan forgiveness options.
  • If students are unable to fully fund their education through direct loans or private loans, they may be deterred from attending graduate or professional programs altogether.
  • Sarah Austin, a policy analyst with the National Association of Student Financial Aid Administrators, has expressed concerns about students being able to attend graduate or professional programs without the anticipated loan forgiveness options.

Statistics:

  • There are annual and total limits on direct loans that may make them less suitable for students who need to borrow more than the limits allow.
  • The Grad PLUS program has helped students cover the cost of attending graduate and professional schools, but its elimination may leave a gap in funding.
  • According to Sarah Austin, there are concerns about students being able to attend graduate or professional programs without the anticipated loan forgiveness options.
  • Private loans may not offer the same level of loan forgiveness options as federal loans, which could deter students from attending high-cost programs.

Sources:

  • The Akron Beacon Journal
  • National Association of Student Financial Aid Administrators (policy analyst, Sarah Austin)