Recently, it was announced that politicians in Washington D.C. have reached a debt deal. It is worth noting that if the bill containing the terms of this deal passes, it may not only impact national debt. It could also have an impact on the personal debt of some graduate students.
This is because one of the provisions of the deal reportedly involves the student loans of graduate students. Reportedly, under the deal, a federal government program which allows some graduate students to not have to pay interest on their student loans while attending school would be stopped.
What effects would the stopping of this program have on graduate students? It could lead to some students having to pay interest on their student loans while they are attending graduate school when they previously wouldn’t have had to. This could lead to some graduate students having to pay more, overall, in connection to their student loans.
As we have discussed previously, high student loan debt is becoming an increasingly major issue for students in Florida and the rest of the country. Problems with high student loan debt can have major impacts on individuals. Thus, it is somewhat concerning that the debt deal could lead to some graduate students having to pay more in connection to student loans.
Thus, the change the debt deal proposes regarding graduate student loans brings up some very important questions. How big of an effect would such a change have on the economic situation of graduate students? Would it lead to more graduate students facing debt problems? Would it impact the borrowing habits of graduate students? One wonders what the answers to these questions will ultimately be.
Source: Miami Herald, “Graduate students will pay more for loans under debt deal,” Douglas Hanks and Michael Vasquez, 1 Aug 2011