Consequence of Debt Deal on Grad School Loans

[HandsomeNerd]

Basically, the govt will no longer pay interest on student loans for the duration of grad school. Discuss.

http://www.wbur.org/2011/08/02/debt-ceiling-loans

[runonsentence]

My thoughts are adequately summed up by the following headline: "Debt deal would end subsidized loans to grad students, produce savings equal to only three months in Afghanistan."

http://thinkprogress.org/education/2011/08/01/284804/subsidized-loans-afghanistan/

[long_time_lurker]

According to the text, it doesn't start until July 1, 2012, and it seems like this only applies to the loans people take out on or after that date. So it seems like many of us, at least, will be spared or not get it as bad as future students.

On the one hand, I don't mind that they shifted the funding towards Pell Grants; I know I wouldn't be in a position to even care about this if it weren't for Pell Grants to start with. However the fact that this is still a drop in the bucket compared to the money spent fighting wars overseas is indeed infuriating.

[Eigen]

Or, to put it in other terms, the cost per year of the program is less than the amount we have spent on bombing runs in Libya- we really needed that additional conflict. But it's OK, since we're not running the operations, just pumping money into them.

Edited August 2, 2011 by Eigen

[Mal83]

I just got my stafford loans approved for Fall 2011/Sring 2012 and it's the same standard mix of subsidized and unsubsidized, hoping to get my two years done before that awfulness goes into effect. It is just a drop in the bucket, but could you imagine how nice it would be if the government just stopped operations in Afghanistan for 3 months so that getting an advanced degree wouldn't be even more financially difficult. I feel like it would be worth it to stop the flow of cash and resources into that country for 3 months, years ago I probably never would have said such a thing, but I find it very disheartening when students at any level are made to bare the burden of a debt crisis that could be alleviated by at least decreasing the astronomical amount of money being eaten up by one operation in one country. Again, it is just a drop in the bucket and it might not amount to a major financial burden for the future grad student, but this is an example of a weak attempt at shifting that burden rather than making any real policy change for the better.