Part of the Budget Control Act of 2011 calls for the end of federally subsidized student loans for graduate and doctorate students. As it is now, the government pays the interest on eligible loans while the student is still attending school. After the reforms take effect on July 1, 2012, all federal student loans made to graduate students will begin accumulating interest as soon as the loans are disbursed. With student debt already on the rise, these changes will add to an already unwieldy cost of education for post-baccalaureate students. Critics of the cuts to the loan subsidies argue that the move serves to place graduate and post-grad degrees that much further out of the reach of middle and lower income families. Also include in the debt deal is the termination of a payment incentive that rewards borrowers who make their first 12 payments on time. Read the rest of this entry »

Tags: Graduate Loans, Pell Grant
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