Loan limits and other “commonsense” measures for financing higher education and protecting families and taxpayers should be in place within two months, Education Undersecretary Nicholas Kent said Thursday.
The new regulations, which the department will publish on May 1, eliminate the Grad PLUS program, which allowed unlimited borrowing amounts for advanced degrees.
Additionally, colleges and universities can establish their own loan caps based on the income potential of academic majors. This prevents students from over-borrowing in programs with lower earnings or higher default rates, according to the Department of Education.
The new income-driven repayment plans, which are included in the Working Families Tax Cuts Act, were previously approved by Congress….