A philosophy graduate student writes:
Many undergraduate students who read your blog may be interested to learn about a significant change in the regulations of the Federal Student Loan Program for Graduate Students. I found the following email in my inbox this afternoon:
"We are writing to advise you of an important change in Federal regulations that affects your ability to obtain a Federal Subsidized Direct Loan. Starting July 1, 2012, the Subsidized Direct Loan will no longer be available to Graduate students. This change was made at the Federal level and will affect all Graduate/Professional students nation-wide not just here at XXXXXX University. .This change in Financial Aid will not effect the Un-Subsidized Direct Loan program. The Budget Control Act (BCA) of 2011 (Pub. L. 112-25) was signed into law on
August 2, 2011"
Many graduate students rely on loans throughout their graduate careers to supplement the generally low (liquid) incomes they receive. Students considering graduate school in philosophy and who are thinking they may need to take out loans to get by, should pay careful attention this, Unsubsidized loans carry higher interest making them more difficult to repay. I have to say i am quite surprised that I have not heard anything about this change in the regulations previously.
I had also not heard about this. Readers, any more information, links, insight into the consequences of the change, etc.?