AMSA National Policy Coordinator
Medical students are a part of the 20.4 million students affected by the rising cost of education in our country - 7.4 million of whom take out Stafford loans. Tuition rates are increasing by $1,000 a year and more students are being forced to take out loans in order to pay for education. Students have options to take Stafford loans, Grad PLUS loans with a rate of 7.9%, and private loans. However eliminating subsidized loans for graduate and professional students in need will greatly impact the financial solvency of students after graduation.
Why do we care?
Currently all graduate students with financial need can take out Stafford loans with federal subsidies. However, the Budget Control Act of 2011 states that as of July 1st 2012, there will no longer be a subsidy for student loans and the only new federal loans available for graduate students will be unsubsidized with rates of 6.8%. The Act was created to maintain the Pell Grant program allowing college funding to millions of student with financial need.
In addition to the Budget Control Act of 2012, Congress is currently debating the Student Loan Forgiveness Act, which plans to fund ...