The debt deal means more than $2 trillion in savings, but some of those savings are coming at the expense of higher education.
Congress is scrapping subsidized loans for graduate students. What that means is the federal government will no longer help grad students cover the interest on some loans while they’re still in school.
Education is expensive, and many graduate students will be shouldering some major debts by the time they get their degrees.
Many students at ISU are already expecting to be tens of thousands of dollars in debt when they graduate.
Soon those students will be facing higher costs.
“They will be responsible for the interest while they’re going to school, beginning in the 2012/2013 academic year,? ISU Associate Director of Financial Aid James Martin said.
student loans totaling $65,000 would mean $207 in interest each month. The federal government would have covered that interest for subsidized loans while the student is still in school, but not anymore.
Some students said it could really make a difference on what potential grad students now decide to do.
“If we don’t have the ability to pay for it, we’ll go for not the top notch schools, we’ll go for cheaper schools, cheaper programs,? grad student Sheila Mitchell said.
“So I think taking away the subsidized, which most of my loans are, I don’t think I would have attended this program if they had done that,? grad student Chris Thurston said.
While others said it’s just another obstacle to get through, and graduate programs will still be as full as ever.
“You know, I know they have to make cuts somewhere, but unfortunately it’s the one that will affect me. But you just gotta do what you gotta do,? grad student Zach Migel said.
Most of the money saved by cutting subsidized loans for graduate students will go toward funding Pell Grants.
The budget deal will also get rid of a credit for students who make 12 months of on-time payments.