[amscott@cgs.nche.edu]

In my opinion the graduate education community should be prepared for either an executive order eliminating the Grad PLUS program or legislative text in the House Budget Resolution that calls for the elimination of the loan program. The House Budget Resolution framework includes the College Cost Reduction Act (CCRA) which calls for the elimination of the Grad and Parent PLUS Loans. House and Senate Budget Committee staff are currently in the process of drafting their respective budget proposals. So, time will tell if the House and Senate will come to an agreement in the months to come.

Below is an excerpt from Chapter 11 of the Project 2025 Plan. As you will see it calls for the elimination of Grad PLUS loans.
Excerpt: The federal government does not have the proper incentives to make sound lending decisions. The new Administration should consider:
• Privatizing all lending programs, including subsidized, unsubsidized, and PLUS loans (both Grad and Parent). This would allow for market prices and signals to influence educational borrowing, introducing consumer-driven accountability into higher education. Pell grants should retain their current voucher-like structure.

If privatizing student lending is not feasible, then the next Administration should consider the following reforms:
• Switch to fair-value accounting from FCRA accounting.
• Consolidate all federal loan programs into one new program that a) utilizes income-driven repayment, b) includes no interest rate subsidies or loan forgiveness, c) includes annual and aggregate limits on borrowing, and d) includes skin in the game to hold colleges accountable.
• Eliminate Grad PLUS loans (for graduate students) and Parent PLUS loans (for parents of undergraduates).
• Graduate students are already eligible for unsubsidized Stafford student loans; Grad PLUS loans are redundant. They also lack some of the safeguards of Stafford loans, such as annual and aggregate borrowing limits. Parent PLUS loans are also redundant because there are many privately provided alternatives available.

Advocating for the Grad PLUS Loan program is a top priority for CGS and will be a topic of discussion during Advocacy Day in April.

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