"The Department of Education has taken its penultimate step in finalizing a new rule that will put a limit on how much graduate students can borrow from the government to fund their education. The plan has seen significant public pushback in recent months, and now concerned constituents will get the chance to have their say. A committee of higher ed experts cautiously signed off on the department's plans in November. On Thursday, the department's more thorough formal proposal was published to the Federal Register for comment."
""For years, American families have rightfully been concerned about the escalating cost of higher education, the long-term-and often negative-effects of student loan debt, and how their postsecondary education translates into real-world jobs and higher wages," Under Secretary of Education Nicholas Kent said in a news release. "[The regulation] offers a once-in-a-generation opportunity to lower tuition costs and improve the student loan system to better support borrowers." The regulations, written in response to the higher ed section of Congress's One Big Beautiful Bill Act, end Grad PLUS loans and limit Parent PLUS loans, which allowed postbaccalaureate students and the parents of undergrads to borrow up to the full cost of attendance. They also eliminate multiple loan-repayment options for borrowers."
The Department of Education published a formal proposal to the Federal Register that closely mirrors previously agreed regulatory text and adds further explanations. A committee of higher education experts had cautiously signed off in November. The public can submit comments through March 2, after which department officials will review and respond before finalizing the rule. The policy is scheduled to take effect July 1. The regulations respond to the higher education section of Congress's One Big Beautiful Bill Act, end Grad PLUS loans, limit Parent PLUS borrowing, and eliminate multiple loan-repayment options. The most contentious change is a new cap on graduate and professional student loans that could prompt universities to reevaluate graduate program funding and push students toward private loans.
Read at Inside Higher Ed | Higher Education News, Events and Jobs
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