To Lower Cost of Graduate Education, Rep. Chu, Sen. Padilla Reintroduce POST GRAD Act

Introduction comes as Congressional Republicans push to make higher education more unaffordable through their Big Ugly Bill

WASHINGTON, D.C. — Today, Rep. Judy Chu (CA-28) and Sen. Alex Padilla (CA) reintroduced the Protecting Our Students by Terminating Graduate Rates that Add to Debt (POST GRAD) Act, a bill that would once again make graduate students eligible to receive Federal Direct Subsidized Loans. 

For over a decade, unlike their undergraduate counterparts, graduate students have only been eligible to receive Federal Direct Unsubsidized Loans which accrue interest even while they are still in school. This is because the Budget Control Act of 2011 stripped graduate students of eligibility for the Federal Direct Subsidized Loan. This can cost a student thousands of additional dollars over the life of the loan, particularly as interest rates on graduate loans are now at their highest since 2006. The POST GRAD Act would reverse the provision of the Budget Control Act and restore the eligibility of graduate students to receive Federal Direct Subsidized Loans.

Many professions like mental health clinicians, school administrators, nurse practitioners, and physical therapists often require a graduate degree, but the high cost of borrowing can dissuade potential students from seeking these advanced degrees or discourage students from entering lower-paying public service jobs after graduation. 

Instead of addressing this higher education affordability crisis, Congressional Republicans are pushing to make the problem even worse. Recently, House Republicans passed a reconciliation bill that, among other harmful provisions, would eliminate the Grad PLUS loan program, a vital source of federal support for graduate students. Nationally, over 1.6 million student borrowers have Grad PLUS loans, amounting to $91 billion in debt. California has nearly 57,000 Grad PLUS borrowers, according to the National Association of Independent Colleges and Universities.

“Many of the most rewarding and in-demand jobs in the U.S. require advanced degrees, but do not always come with high earning potential. A lifetime of debt should never be the cost for obtaining a graduate degree,” said Rep. Chu. “At a time when our country is facing a shortage of specialized workers in critical fields, we should be doing everything we can to encourage students to enter these fields, rather than creating additional barriers to higher education. Democrats in Congress are committed to lowering costs and reducing debt, and that’s why I’m proud to be joined by Senator Padilla in introducing the POST GRAD Act as one important step in making higher education more attainable to everyone in America.”

“Graduate students help fuel our economy, filling workforce shortages in critical sectors like health care, education, and STEM that often require advanced degrees. Yet, too many talented students in California and nationally cannot afford to pursue advanced degrees due to the rising cost of higher education,” said Senator Padilla. “As Republicans threaten to slash the Grad PLUS program entirely, we are taking a stand to make graduate school more affordable by reinstating subsidized federal student loans for graduate students so they don’t accrue interest while they are in school. We did this for decades, and now is the time to support our 21st century graduate workforce and expand educational opportunities for low-income communities.”

“The cost of graduate education often serves as a barrier to pursuing advanced degrees, including in psychology, where shortages of qualified, culturally competent providers persist. By reinstating subsidized federal student loans for graduate students, the POST GRAD Act would relieve a portion of the financial burden associated with financing a graduate degree. APA applauds Congresswoman Chu and Senator Padilla for their leadership on this important legislation, which would make graduate study more affordable and help build a workforce ready to meet the growing needs of our population,” said Arthur C. Evans Jr., PhD, CEO of the American Psychological Association.

The bill is endorsed by: American Psychological Association, National Association of School Psychologists, National Education Association, AccessLex, Association of Public and Land-grant Universities, National Association of Student Financial Aid Administrators, American Physical Therapy Association, American Association of Veterinary Medical Colleges, American Occupational Therapy Association, Association of Schools Advancing Health Professions, Association of Schools and Colleges of Optometry, Physician Assistant Education Association, American Association of Colleges of Osteopathic Medicine, Council on Social Work Education, American Dental Education Association, American Association of Colleges of Nursing, American Association of the Colleges of Podiatric Medicine, University of California System.

Click HERE for bill text