Graduate Degrees and Student Loans: A Shift in the Game

The Department of Education (ED) recently updated its list of "professional" graduate degrees eligible for higher student loan limits. This change has sparked debate. Only eleven degrees made the cut, leaving many others, like nursing and accounting, out in the cold. Some people are upset. They think this will make it harder for students to afford these programs. Others believe it's a good thing. They argue that lower loan limits will force students to think more carefully about their budgets. This could lead to less student debt in the long run. The idea behind this change is called the Bennett hypothesis. It suggests that when students have access to lots of federal aid, colleges can raise tuition because the government will cover the cost. So, the thinking goes, if students can't borrow as much, schools might have to lower their prices to stay competitive.But not everyone agrees that this will work. Some experts point out that many students in the excluded fields don't even borrow up to the current limits. So, the new caps might not stop them from pursuing their degrees. The proposed changes could also have other effects. For example, schools might shift costs between programs to make up for lost revenue. Or, they might focus more on teaching and less on fancy facilities. Overall, the impact of these changes is still unclear. But one thing is for sure: the debate over student loans and the cost of education is far from over.