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VSAC warns federal loan caps and new accountability rules could squeeze graduate programs and workforce training
Summary
Vermont Student Assistance Corporation told the House Education Committee that caps in the federal reconciliation bill—limits on parent, graduate and professional borrowing plus program-level earnings tests—could reduce access to graduate and workforce-critical programs; VSAC urged state measures and outlined mitigation steps.
Scott Giles, president and CEO of the Vermont Student Assistance Corporation, told the House Education Committee on Jan. 9 that changes in a recent federal reconciliation bill will materially change who can borrow and which programs remain eligible for federal student aid.
Giles said the bill caps parent borrowing at $20,000 per year with a $65,000 lifetime limit per student, and creates new annual and lifetime caps for graduate borrowing: $20,500 per year and a $100,000 lifetime cap for most graduate programs, and $50,000 per year with a $200,000 lifetime cap for programs defined under a decades-old list of so-called "professional programs." He warned those limits could push some families toward state loan programs or commercial credit markets if additional funds are…
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