Press Release

NEW LEGISLATION MAKES KEY REFORMS TO STUDENT LOAN SYSTEM

Kelley KarnesIssued: 03-09-23

CGS supports the reintroduction of the LOAN Act; key provision includes expansion

of the Pell grant program for graduate education.

 

Washington, D.C. — The Council of Graduate Schools (CGS) applauds the reintroduction of the Lowering Obstacles to Achievement Act Now (LOAN) Act by Democratic ranking members of the Education and the Workforce Committee, Representatives Robert C. “Bobby” Scott (D-VA) and Frederica Wilson (D-FL).

Key provisions include increasing Pell Grant eligibility from 12 semesters to 18 semesters and allows students completing a graduate or professional degree to use any remaining Pell eligibility from their undergraduate studies.

Other key provisions include:

  • Provides graduate and professional students with access to subsidized loans at the same interest rate available to these students for unsubsidized loans.
  • Repeals origination fees on all loans subject to collection of such fees – Direct Subsidized and Unsubsidized Loans and Direct PLUS Loans.
  • Extends Title IV eligibility to DREAMer students.
  • Increases the maximum award to $10,000 for the 2024-2025 award year, doubling the maximum Pell Grant over a period of five years thereafter to $14,000.

“This legislation highlights a commitment to making graduate education more accessible by expanding the Pell Grant program and reforming student loans,” Suzanne T. Ortega, CGS President, said. “These changes ensure that individuals with exceptional financial need can meet changing workforce demands and pursue degrees essential to their career goals.”

CGS commends Representatives Scott and Wilson for introducing this important piece of legislation that will have a big impact on all students pursuing postsecondary education, especially a graduate degree.

 

About CGS

The Council of Graduate Schools (CGS) is an organization of approximately 500 institutions of higher education in the United States and Canada engaged in graduate education, research, and the preparation of candidates for advanced degrees. The organization’s mission is to improve and advance graduate education, which it accomplishes through advocacy in the federal policy arena, research, and the development and dissemination of best practices.