Debt Deal Slaps 1.2 Million Grad Students with New Loan Costs

Thursday, August 04, 2011

This week’s debt ceiling deal may have pulled the U.S. back from default, but 1.2 million graduate students just got slapped with another bill. About one third of all graduate students have a partial federal subsidy on their loan, so they don’t get charged interest while they’re studying. That willll be abolished from July next year, as part of an agreement to reduce deficits by at least $2.1 trillion over a decade. But it could mean thousands of dollars more in loan costs for about a third of the country’s 3.6 million graduate students.

Pauline Abernathy is the vice president for the Institute for College Access and Success, a non profit that attempts to make higher education more available and affordable.


Pauline Abernathy

Produced by:

Duncan Wilson

Comments [1]

Jonpaul Barrabee from Detroit

I am waiting for the Education Debt Bubble to burst. The costs of getting a higher education keeps going up and the value keeps going down. I thought I heard that people have more education debt then Credit Card debt in the US. Declaring bankruptcy does not erase education debt.

Actually not freezing interest while students go back to school may have the effect of discouraging students from going back to school. This might actually be good because going back to school I believe seldom pays for itself.

Aug. 04 2011 08:45 AM

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