So This Happened Yesterday

With all the news and anticipation about the ACA ruling to come, this seemed to get buried in the news cycle (emphasis mine):
College students are facing a roughly $20 billion increase in the cost of their federal loans, despite a much-heralded deal in Washington to contain the expense of higher education.

Starting Sunday, students hoping to earn the graduate degrees that have become mandatory for many white-collar jobs will become responsible for paying the interest on their federal loans while they are in school and immediately after they graduate. That means they’ll have to pay an extra $18 billion out of pocket over the next decade.

Meanwhile, the government will no longer cover the interest on undergraduate loans during the six months after students finish school. That’s expected to cost them more than $2 billion.

[...]This week, Senate leaders announced that they had finally reached a compromise on how to pay the estimated $6 billion cost of freezing the rate for one year. Congress is expected to approve the deal by Friday.


Lawmakers ended a long-standing program that pays the interest on federally subsidized loans for six months after a student graduates from college. The change applies to new loans issued through July 2014.

Students who take out these loans over the next year will receive the lower interest rate — but that amount will be charged to their bill as soon as they throw their graduation caps in the air. Students who apply for federal loans next year will be hit with a double whammy: a higher interest rate that begins after graduation.
That grace period for undergrads has been a tiny saving grace for many people's finances, as they already struggle in the face of high unemployment after graduation.

Many careers require a graduate degree and now the only people who will be able to get one are those who can afford to pay--or afford to gamble juggling finances to pay--the cost while they're still in school and directly after.

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