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Federally Subsidized Loans For Graduate Students to Be Taken Away

No More Federally Subsidized Loans For Grad Students

Bad news for 82 percent of Sugar readers who are considering grad school: there will be no more federally subsidized loans for graduate or professional students as a result of the latest debt deal.

Right now, grad students are allowed to take out  a maximum of $20,500 in federal loans, and up to $8,500 can be subsidized. Subsidized loans, which are only for those who qualify for this extra financial help, basically means the government will be paying interest on it while you are enrolled in school, so you don't have to. This will all change for loans taken out after July 1, 2012.

The move is estimated to cost students $18.1 billion over the next 10 years and financial experts say it will add thousands of dollars in interest to an already costly graduate student loan. Those who would be harder hit would naturally be students who are in degrees that take longer to complete.

The good news is the federally subsidized loans for undergraduate students will be left untouched. What do you think about this?

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Join The Conversation
Haydn2665585 Haydn2665585 5 years
usefulthings   Right.... its about time someone realized that while students are in school they are freeloaders, moochers, do nothing leeches trying to suck the very life out of this country by trying to increase their salary by education.  Plus they NEVER EVER pay taxes while in school.  They never pay sales tax, property tax, income tax, nothing.  And how dare they try to make more money, don't they know that with higher incomes come more taxes they have to pay.  Much better to stay uneducated and ignorant so that they really can avoid paying taxes their whole lives.  And I'm guessing you are not capable of realizing that this post is DRIPPING with sarcasm so I feel the need to point that out.
usefulthings usefulthings 5 years
The move is estimated to cost students $18.1 billion over the next 10 years ***and save taxpayers the $18.1 billion over the same period.*** (FTFY)
gingrlj gingrlj 5 years
such bad news as I'm hoping to apply to grad school in the next year. Booo-hooo.
karen7782 karen7782 5 years
So long as the super rich don't have to pay higher taxes, who cares about huge debt burdens for people trying to get an education...
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