Others have also floated this controversial proposal.
The Trump administration is proposing capping the amount graduate students and parents can borrow through the federal student-loan program as part of a suite of suggestions to Congress that could expand the role of the private sector in higher education and the student-loan system.
“At the White House, we’ll continue to push for inclusive growth in this booming economy and look for ways that the private sector and bipartisan legislation can empower American workers,” Ivanka Trump, President Donald Trump’s adviser and daughter said on a conference call with reporters, announcing the proposals. “We think these are absolutely critical reforms and, really, the most comprehensive approach to higher ed reform in over a decade.
On the other hand, borrower advocates, law schools, medical schools and others worry that capping the amount parents and graduate students can borrow would force students and families on the private market, which has fewer protections than the federal government. It could also put low-income families or graduate students with limited earning potential at risk of not securing funding at all.
Rachel Fishman, the deputy director for research with the Education Policy program at New America, a think tank, said that while she worries about parents, particularly low-income parents, taking on such high debt loads as they near retirement, capping Parent PLUS alone likely isn’t a sustainable solution.
Still, the law and medical school community have raised concerns about curtailing loans to graduate students, arguing it could make it more difficult for groups that have historically struggled to get access to credit and are under-represented in these schools to attend graduate school. What’s more, they worry their graduates would lose access to flexible repayment programs available through the federal government that are rarely found on the private market.
The White House suggests reforming higher education in other ways The White House has proposed on multiple occasions streamlining the student-loan repayment system in such a way that would make many of the flexible repayment options available through the student loan program more expensive for graduate students and extend the time they need to repay on their loans before being eligible for forgiveness.
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