US Senate News:
Source: United States Senator Alex Padilla (D-Calif.)
Padilla, Chu Introduce Bicameral Legislation to Make Graduate Education More Affordable
POST GRAD Act comes as Congressional Republicans push to make higher education more unaffordable through their billionaire-first budget bill
WASHINGTON, D.C. — Today, U.S. Senator Alex Padilla (D-Calif.) and Representative Judy Chu (D-Calif.-28) introduced bicameral legislation to help students afford advanced education by restoring graduate students’ eligibility for receiving subsidized federal loans. The Protecting Our Students by Terminating Graduate Rates that Add to Debt (POST GRAD) Act would prevent graduate students from accruing interest on their subsidized graduate loans while in school, just like their undergraduate counterparts.
Many professions, such as 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. Instead of addressing the higher education affordability crisis, Congressional Republicans recently passed a billionaire-first 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 loan 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.
“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.”
“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 Representative 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.”
“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 Budget Control Act of 2011 stripped graduate students of eligibility for Federal Direct Subsidized Loans, which they had access to from 1994-2012, costing students thousands of dollars, particularly as interest rates on graduate loans are now at their highest rate since 2006. The POST GRAD Act would reverse the harmful provision of the Budget Control Act and restore the eligibility of graduate students to receive Federal Direct Subsidized Loans. Furthermore, it would prevent graduate and professional students who fall into deferment due to economic hardship from accruing interest on their Federal Direct Subsidized Loans.
The POST GRAD Act is cosponsored by Senators Cory Booker (D-N.J.), Tammy Duckworth (D-Ill.), Andy Kim (D-N.J.), Chris Van Hollen (D-Md.), and Ron Wyden (D-Ore.).
The bill is endorsed by the following organizations: 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, and the University of California System.
Senator Padilla has consistently advocated on behalf of students to make higher education more affordable and accessible. Earlier this year, Padilla introduced the bipartisan RESEARCHER Act to bolster U.S. leadership in STEM by requiring federal research agencies to help address the financial insecurity crisis among graduate and postdoctoral researchers. Last year, Padilla and Representative Norma J. Torres (D-Calif.-35) hosted local students and advocates to reintroduce the Basic Assistance for Students in College (BASIC) Act, bicameral legislation to help ensure college students can meet their basic needs while pursuing their education. He also cosponsored the College for All Act to make public colleges and universities tuition free for 95 percent of students.
Senator Padilla continues to support large-scale federal student loan forgiveness and cancellation, and he recognizes that this would be one of the most effective ways to close the racial wealth gap in the United States. During the Biden Administration, Padilla led numerous letters urging the President to provide meaningful student debt cancellation, along with multiple letters urging former U.S. Secretary of Education Miguel Cardona to leverage his authority under the Higher Education Act to provide expanded student debt relief to working and middle-class borrowers. Padilla also led his colleagues in calling on Secretary Cardona to consider additional student debt relief for borrowers experiencing financial hardship.
Full text of the bill is available here.
