Education Policy
The value of a shorter forgiveness timeline for low-balance student loan borrowers
The reconciliation package known as the One Big Beautiful Bill Act (OBBBA) signed into law last summer made important changes to the federal student loan program that will affect how millions of students and their families finance their post-secondary education.
The law imposed new limits on how much parents can borrow on behalf of their children through the Parent PLUS program, but Arnav Dharmagadda and Sarah Turner argue that these provisions may miss the mark in addressing serious problems with this program. The law also eliminated the Grad PLUS program for new borrowers, reducing how much graduate and professional students will be able to borrow going forward.
Meanwhile, undergraduate loan limits for student borrowers were unchanged by the new law. These limits have not been adjusted to reflect changes in the cost of attending college since 2008, raising concerns about students’ ability to pay for college with their own loans.
On October 14, the Brookings Center for Economic Security and Opportunity will host a panel to discuss the proper role of loan limits in a well-functioning student loan system, how OBBBA changed loan limits, and how that is likely to affect students and institutions of higher education.
Viewers can pose questions in advance by emailing [email protected].
Agenda
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October 14
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Panel discussion
Justin Draeger Senior Vice President, Affordability - Strada
Jordan Matsudaira Professor of Public Administration and Policy - American University, Co-Director - PEER Center at American University @jdmatsudaira
Sarah Turner University Professor of Economics & Education; Souder Family Chair - University of VirginiaModerator
Sarah Reber Cabot Family Chair - Economic Studies, Senior Fellow - Center for Economic Security and Opportunity @econsarahreber
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