Graduate Degrees and Student Loans: A Shift in the Game

The Department of Education (ED) has recently updated its list of "professional" graduate degrees eligible for higher student loan limits. This change has sparked significant debate.

Only Eleven Degrees Make the Cut

Out of many, only eleven degrees were deemed eligible, leaving fields like nursing and accounting without the higher loan limits.

Diverging Opinions

• Critics argue that this will make it harder for students to afford these programs.
• Supporters believe that lower loan limits will encourage students to budget more carefully, potentially reducing long-term student debt.

The Bennett Hypothesis

The change is rooted in the Bennett hypothesis, which suggests that when students have access to substantial federal aid, colleges may raise tuition, knowing the government will cover the cost. The idea is that if students can't borrow as much, schools might have to lower their prices to stay competitive.

Skepticism and Uncertainty

• Some experts argue that many students in excluded fields don't even borrow up to the current limits, so the new caps might not deter them.
• Schools might shift costs between programs or focus more on teaching and less on facilities to adapt.

The Debate Continues

The impact of these changes remains unclear, but one thing is certain: the debate over student loans and the cost of education is far from over.