Loan Changes Brewing: What’s Cooking in NYC?

Looks like snagging a grad degree might soon become trickier, folks. If you haven’t been paying attention, Trump’s Department of Education kicked off talks last week to seriously shake up the way we pay off student loans.

The Grad Loan Tango

What’s the big headline? The Department’s scheme to scrap the Grad PLUS loan program. It currently lets grad students borrow enough cash to actually pay for school. But wait, it gets messier. They’re also throwing caps on borrowing. Graduate students are looking at $20,500 a year max, and a lifetime max of $100,000. For the pros? $50,000 annually, up to $200,000 total. Check out more on this here.

Who’s in and Who’s Out?

Let’s talk caps—only ten programs make the cut for that higher limit: pharmacy, dentistry, vet medicine, chiropractic, law, medicine, optometry, osteopathic medicine, podiatry, and theology. But wait, what about engineering, business, or education? Bennett Boggs from Missouri’s education department isn’t buying it. He says it could cripple crucial fields.

Meanwhile, Andy Vaughn from Alliant International University worries that mental health careers, which need a good five years of study, are getting the short end of the stick. They’ve been left out in the cold for that higher cap. This ain’t just talk; it could go down as one big oversight.

What’s the Big Deal?

These adjustments are supposed to curb borrowing, but experts caution that it’s going to mean fewer financing choices for folks going after advanced degrees. Some might bail on enrollment. Others will be pushed toward the private lending route. Dive deeper here.

The Department’s Stance

During the chat about these reforms, Tamy Abernathy held firm. “The list’s fixed,” she said. But she left the door ajar for future tweaks. Nicholas Kent, the Undersecretary of Education, said the goal is a simpler, more responsible loan setup.

“A system that fits today’s learners,” Kent declared. His optimism’s infectious, but can it weather the storm ahead?

Future Sessions and a Crunchy Timeline

More negotiation sessions are set for November before the big rollout in July 2026. Timing’s key here. Colleges won’t know the final deal until right before financial aid decisions kick in. That’s a squeeze for prospective students.

Clare McCann says colleges might have to bring down tuition. Students could find private debt not worth the hassle. Keep an eye on developments here.

An Interim Band-Aid?

In response to concerns, there’s an “interim definition” trick. This allows students in programs awarding professional degrees before 2027 to be considered professional students. A bit of a patch-up, if you ask me.

Got an opinion on these changes? Drop a line to the reporter here.

In the city’s hustle, these changes impact a hefty chunk of us chasing those big dreams. So, stay sharp and stay vocal, New York.