"At least a quarter of students across a broad range of graduate and professional programs could need private loans, which tend to come with higher interest rates, in order to pay for their education once new caps on federal loans take effect next summer, multiple studies show. For some, the loans could become so costly as to make earning a master's or doctoral degree unattainable."
"Currently, this group can borrow federal loans up to the total cost of attendance thanks to a program known as Grad PLUS. But starting July 1, students will max out at either $20,500 or $50,000 per year depending on whether they enroll in a graduate or professional program, respectively. And those in graduate programs will only be able to take out $100,000 over all, while students in professional programs will be limited to $200,000."
"The caps mean that the median borrower in four of the nine largest professional programs likely will need to find other financing to pay tuition bills, according to a recent analysis from the Postsecondary Education and Economics Research Center at American University. And it's not just the most costly doctoral programs such as medicine and dentistry."
Starting July 1, federal limits will cap graduate borrowing at $20,500 or $50,000 per year and lifetime totals of $100,000 for graduate programs and $200,000 for professional programs. At least a quarter of students across many graduate and professional programs will likely need private loans to cover costs, and some borrowers could find degrees unattainable due to higher private rates. Analyses show median borrowers in several major professional fields and many master's programs exceed the new caps. Many students may struggle to find private lenders, face steep interest rates, and risk dropping out or forgoing enrollment.
Read at Inside Higher Ed | Higher Education News, Events and Jobs
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