We’ve been covering the decent-size financial hit that graduate students will be suffering, now that the government is eliminating the subsidy on federal loans for grad students.
Here’s another, albeit much smaller smack to those young scribes, as reported by CNN:
The other big cut that Congress is targeting is a credit that all students get on the origination fee they pay the federal government to process their loans. Students pay 1% of a Stafford loan as an origination fee, but all students get half of that back unless they miss one of their first 12 payments.
The loss of that credit would cost a student who borrows $5,000 from the federal government $25. This would cost students $3.6 billion over the next decade, according to the budget office.