The law also introduces borrowing caps for graduate and professional degree students ($20,500 annually, $100,000 lifetime) and parents taking out loans to assist with a child’s education ($20,000 per year, $65,000 per child).
Student loan experts worry these caps will push more borrowers toward private lenders, which charge higher interest rates, offer less favorable terms and don’t qualify for any income-driven repayment or forgiveness programs.
“You’re pushing people into the private student loan market and away from safe federal student loans with good consumer protections,” said Pierce.
According to Jonathan Glater, H.R.1 does nothing to address why student debt became a crisis in the first place: skyrocketing college…