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Federal loan-rule changes cited as risk to graduate and part-time students at Assembly hearing
Summary
The LAO and UC/CSU officials told the Assembly subcommittee that HR1 changes (sunsetting Grad PLUS, capping Parent PLUS, prorating direct loans by enrollment intensity) could push some graduate and part-time students to private credit, with segments estimating millions in lost loan eligibility for certain groups.
Legislators heard testimony that recent and proposed federal changes to student lending could reduce borrowing options for graduate and part-time students and could have downstream effects on workforce pipelines.
Natalie Gonzalez of the Legislative Analyst's Office summarized the federal actions included in HR1: annual and lifetime caps on Parent PLUS loans, elimination of Grad PLUS loans, and changes to Pell eligibility plus a new "workforce Pell" for short-term programs. "Some borrowers will now have to turn to the private market," she said, warning…
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