ADA supports bill restoring need-based eligibility for student loans

POST GRAD benefit eliminated in 2012

The ADA supports legislation that would restore need-based eligibility for graduate and professional students to receive Federal Direct Subsidized Stafford Loans, eligibility that was eliminated in 2012. 

The Protecting Our Students by Terminating Graduate Rates that Add Debt Act, known as the POST GRAD Act, does not create a new program but restores a previously available benefit under the Higher Education Act. 

In a June 23 letter the ADA thanked Sen. Alex Padilla, D-Calif., and Rep. Judy Chu, D-Calif., for introducing the bill, S. 1948 and H.R. 3711. The letter notes that dental students rely heavily on Direct Unsubsidized loans and Grad PLUS loans, which can carry interest rates between 9.08-10.08%. 

ADA President Brett Kessler, D.D.S., and Interim Executive Director Elizabeth Shapiro, D.D.S., J.D., highlighted in the letter that the average educational debt for graduating dental students exceeds $312,000. They said the bill serves as a practical, targeted step toward reducing borrowing costs and could help incentivize service in underserved areas. 

“Reinstating eligibility for Direct Subsidized Stafford Loans would provide graduate and professional students with access to lower interest rates and the benefit of having interest covered by the federal government while the borrower is in school, in a grace period, or in deferment. While this legislation alone will not resolve the broader student debt crisis, it is an important step toward alleviating the financial strain on students pursuing advanced professional degrees,” Drs. Kessler and Shapiro wrote.