S.308 - Graduate Opportunity and Affordable Loans Act (119th Congress)
Summary
S.308, the "Graduate Opportunity and Affordable Loans Act," proposes modifications to the Federal Unsubsidized Stafford Loan program for graduate and professional students. The bill aims to adjust annual and aggregate loan limits and terminate Federal Direct PLUS Loans for graduate and professional students, starting July 1, 2025. It differentiates between graduate and professional students in terms of loan limits and includes phase-out provisions for students already receiving loans.
Expected Effects
The bill will likely lead to reduced borrowing capacity for graduate and professional students through the Federal Unsubsidized Stafford Loan program. It will also eliminate the Federal Direct PLUS Loan option for these students. Institutions will be required to notify students about these changes.
Potential Benefits
- Potentially reduces the overall debt burden on graduate and professional students by limiting loan amounts.
- May encourage students to seek alternative funding sources, such as scholarships or grants.
- Could lead to more responsible borrowing habits among graduate students.
- May incentivize institutions to offer more affordable graduate programs.
- Could decrease the risk of loan defaults among graduate and professional students.
Most Benefited Areas:
Potential Disadvantages
- May limit access to higher education for students from low-income backgrounds who rely on federal loans.
- Could force students to take out private loans with potentially higher interest rates and less favorable terms.
- May delay or prevent students from pursuing graduate or professional degrees.
- Could negatively impact enrollment rates in graduate programs.
- May disproportionately affect students in high-cost professional programs (e.g., law, medicine).
Most Disadvantaged Areas:
Constitutional Alignment
The bill's alignment with the Constitution is primarily related to Congress's power to regulate commerce and provide for the general welfare (Article I, Section 8). The bill does not appear to infringe on any specific constitutional rights or freedoms. The setting of loan terms and conditions falls under the purview of congressional authority regarding financial matters.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).