To Lower Cost of Higher Education, Rep. Chu Reintroduces POST GRAD Act
Introduction comes as pandemic-era student loan payment pause ends this month
WASHINGTON, D.C. — Today, Rep. Judy Chu (CA-28) reintroduced the Protecting Our Students by Terminating Graduate Rates that Add to Debt (POST GRAD) Act. The bill would once again make graduate students eligible to receive Federal Direct Subsidized Loans. That eligibility was ended by the Budget Control Act of 2011.
For over a decade, unlike their undergraduate counterparts, graduate students have only been able to obtain Federal Direct Unsubsidized Loans that accrue interest even while they are still in school. This can cost the student thousands of additional dollars over the life of the loan, particularly as interest rates increase as they did on July 1, 2023. As a result of this recent increase, interest rates on graduate loans are now at their highest since 2006. This also comes as the pandemic-era pause on student loans was lifted and interest on all federal student loans once again began accruing on September 1, with the first payments due the month of October.
“Many of the most rewarding and in-demand jobs in the U.S. require advanced degrees, like mental health clinicians, school administrators, nurse practitioners, and physical therapists. But they do not always come with high earning potential, meaning our best and brightest students may face insurmountable barriers to these degrees because of the high cost,” said Rep. Chu. “A lifetime of debt shouldn’t be the cost for obtaining a graduate degree, so I’m reintroducing the POST GRAD Act to restore the availability of Federal Direct Subsidized Loans for graduate students and make higher education more attainable to everyone in America.”
“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 for her longstanding leadership of this important legislation, which would make graduate study more affordable and help build a workforce ready to meet the growing needs of a diverse population,” said Arthur C. Evans Jr., PhD, CEO of the American Psychological Association.
The bill is endorsed by: American Psychological Association, American Association of Veterinary Medical Colleges, American Physical Therapy Association, Physician Assistant Education Association, Association of Schools Advancing Health Professions, Association of Schools and Programs of Public Health, American Association of Colleges of Nursing, American Occupational Therapy Association, American Association of Colleges of Osteopathic Medicine, Association of Public and Land-Grant Universities, Council on Social Work Education, California State University, Association of Accredited Naturopathic Medical Colleges, National Education Association, National Association of School Psychologists, American Federation of Teachers, National Association of Student Financial Aid Administrators, AccessLex, Association of American Medical Colleges, and University of California System.
Click here for bill text.