Debt Ceiling Cuts Worry U Of M Grad Students

MINNEAPOLIS (AP) — Pell Grant funding for undergraduate students was preserved in the law to raise the federal debt ceiling, but it was financed by curbs to student loan subsidies that helped graduate students.

The Minnesota Daily reports that has some professional and graduate students at the University of Minnesota concerned.

Government-subsidized loans for graduate and professional students across the nation will be eliminated in July 2012. Those students will begin paying interest on their loans while still in school, or let it accumulate.

The president of the University’s Graduate and Professional Student Assembly, Abou Amara, says the lack of subsidized loans will deter some students from attending graduate school.

Amara says he supports the Pell Grant program but cuts to programs at the state and federal level mean a “bleak future” for grad students.

(© Copyright 2011 The Associated Press. All Rights Reserved. This material may not be published, broadcast, rewritten or redistributed.)

  • Jim Saporito

    Don’t worry, educated idiots. This will bring the price down so that your kids, or your grand kids, will be able to pay their own way.

    • me

      But what are all those poeple who depend on the Government for EVERYTHING going to do? We can’t expect them to take care of themselves.

      • markH

        I agree! This is just the beginning; the day will come when even those who do not pay ANY taxes will still not be entitled to a tax refund.

  • Susan

    Get a job. Then you’ll learn something worth knowing.

    • Iconoclast

      Yep. To the tune of about $9 per hour. Doesn’t that sound like a great life, Susan?

  • dan

    Maybe this is an opportunity for Private Colleges to offer financing to graduate students. Why rely on the govt for everything!

  • Common Man

    Not even out of college and they are being taught to be dependent on the government. No wonder they go out into the job market and expect the government to provide them with a job or work for some place that is government funded and think that this is how it is for everybody. Wait until they see the burger flippin job or gutter sweeper jobs waiting for them. But this is not really their fault, all the goods jobs moved to China… check out IBM, no jobs here but lots in China and MExico etc…

  • soapboxgod

    Cuts? What is this non-sense about “cuts”?

    Reductions (which, mind you will never happen) to future spending increases are not cuts.

    Any individual who has been educated as opposed to indoctrinated will understand this.

  • Give me liberty

    So now everyone is entitled to graduate school? Since when is graduate degree required to get a job?

    My grandfather had to drop out of school in the 8th grade to support his family because his older brothers were drafted into the war. Through hard work he was able to put my father through college and my father returned the favor and helped me.

    Now these spoiled brats think the government owes them a secondary education and graduate school. Makes me sick. What is happening to America?

    • T

      Exactly! Why do people need graduate degrees! We don’t need any more advances in medicine and technology. What have they done for us?

      • Jim S.

        Made us think we can eat and live anyway we like and expect a cure for everything.

  • get real

    Plain &’s tax increase for grad students. You should be paying a loan while still school. I repeat a loan!!

  • get real

    You should be paying a student loan while still school?

    I repeat a loan!!

  • Give me liberty

    Why do people fell like it is the governments responsibility to provide these loans? If you haven’t noticed were broke.

    You need a loan, go to a bank.

    • Iconoclast

      A bank will not give a loan to a 20 year old for $25,000 for graduate school, sir.

      Open mouth insert keyboard, eh, buddy?

  • Ordinary Guy

    When a good solid work ethic is good enough to solve our nation’s innovation lag or scientific expertise shortfalls, then grad school support won’t be needed. But right now it’s like a science apprenticeship where you actually get to start research projects to try to reclaim our national status.

    The trouble is, fully-funded foreign students have the motivation to achieve for us and we’re lucky to get them here, but technology sharing allows all that work to be put into commercial practice in their home lands instead of here. We have grown useless in doing this for ourselves. We pay for the schools, we pay for the research, and then they get the brains and get all of the jobs and all of the new innovative product advances. How nuts is that?

    • J D IN ALA

      I think these foreign graduate students should be given green cards upon graduation so that they will WANT to stay in the US and apply their newly aquired knowledge.

  • Xman

    In almost every country except USA and a few others, everything is copied. There is no inovation because no one can make money from their idea. The government or others take the idea and give nothing to the person who came up with it. the more government control we have here means the less likley any new ideas will happen. Soon we will be just another 3rd world country trying to copy others. and we can not do that very well.

    • scary

      “Anyone who comes up with a new idea should be killed.” George Soros.

  • Educated Idiots?

    I am almost sick reading these responses and am disgusted at the lack of understanding. Graduate degrees absolutely strengthen both the private and public sectors and the way to balance the mess in Washington is NOT to require STUDENTS to pay higher interest rates. Yes, grad degrees are not for everyone, but are absolutely vital to our country. Here are the facts folks: Subsidized Grad loans come with a 3.8% interest rate and the interest does not inquire while enrolled (SMART!!). Unsubsidized loans for grad students carry an 8% interest rates and the interest is inquired while enrolled. 8%????!!!!! This is damn fraud and the government is now only going to make it much more difficult for anyone to afford grad school…Except of course that 1% of Americans who can afford it. Get real people this is a crisis if you can’t see the long term impact of not having affordable advanced degrees in this country, it is not worth the time to listen to your argument. Sure I am ranting but a lack of understanding about this is nothing less than absurd.

    • sue

      Thank you for speaking up. I too an disgusted reading all these comments. Our kids have student loans they will be repaying until the cows come home, but they are not complaining. They know they have to be repaid BUT they are grateful for the jobs their college education provided for them. Evidently the folks with all the comments/answers to this article, know everything and therefore don’t need a college education and don’t have any student loans!!!!!!!!

    • Jim S.

      Few can afford it because loans raise costs. You end up needing a loan to pay for it. Get it?

      1) I offer a loan.
      2) You can’t say, “no” to a dump truck of money pulling up to your house. No one can.
      3) The loan makes the thing you’re buying more expensive as the years go by.
      4) Eventually it’s so expensive, you gotta come to me to get the money to pay for it.
      5) The gap between haves and have nots becomes absurd
      6) The government sometimes has to bail the banks out, because everything is dependent on them.
      7) The work week gets longer and harder even though technology increases.
      8) You don’t make a fuss about a whole list of absurd things like this because you spent your whole childhood sitting in a chair in age segregated rooms being told what to think and when to think it.


    • StraycatStrut

      Students who voted for Obama gotta thank him for his lack of leadership… and 2 years of Democratic over spending so college loans now will be hard to acquire in the future. Times are tough for everyone……..especially for Socialistic Community Organizers in the White House trying to solve a Capitalist Country economic problem.

  • Leeches R Us

    Who needs research? Especially in medical school -go back to the good old days the Tea Party advocates. Leeches to bleed the poisons in the blood anyone? We wouldn’t want to spend “our money” for something so frivolous as a cure for cancer, would we?

  • Ordinary Guy

    What is really needed, and oh I hate to suggest another program, but in these tough economic times when we need the brains and innovation so badly, is a defined way for graduates to enter the industry of their chosen field and work off the government loans. Widespread default or deferments will collapse the loan system, and working for stipend pay as an intern researcher is better than being drafted, for instance.

    When times are better, they’ll be up and running for our benefit and theirs. Every industry can use the benefit, but the placement agent had better make sure the employer is applying for graduates to do new research and new work, rather than laying off current white-collar workers and hiring on the cheap. A community service stint could do graduates some good too, by giving them a feeling of personal investment in our communities’ well-being.

    • sue

      Well said Ordinary Guy!

  • Grad students are the worst

    Funny how I was able to go all the way through school with unsubsidized, personal loans. Yes it was a lot of money and debt but it was important so I made it happen. Now I make a lot of money to pay those large loans off. It’ll take a long time but again, I was able to accomplish it so why can’t these students? It is all about initiative and I have discovered some of the dumbest folks I know have grad degrees.

    • Iconoclast

      Personal loans?

      Please describe how to be granted “personal loans” to take care of 4-6 years of college or more. I call BS.

  • Give me liberty


    Your rants about value of the program might not ring so hollow if not every government program was a sacred cow for you liberals.

    The republicans can’t even get Democrats to agree that a 40 year old (originally temporary program) subsidizing air traffic to rural airports shoud be cut. Millions of dollars to support less than 20 airports and all they requested was to cut the program for airports within 70 mile radius of another airport. Doesn’t sound very rural to me. I commute that far round trip every day to work. Truly government waste, but sacred to the Dems. Shared sacrifice my a$$.

    Instead the Democrats don’t vote on the bill and take vacation putting thousands out of work and blame the Republicans. The House passed the bill to keep these people working and the DEMOCRATES refused to approve. Funny thing about compromise, it takes two to play that game.

    America is going no where fast. Can’t wait for next election when you pompous liberals find out 2010 is the new direction. You just don’t get it.

    • Iconoclast

      Would the U.S. be better off if there were no liberals, and all people adhered strictly to all of the Republican Party’s platform?

      • Give me liberty

        That is easy. A resounding no. There must be a balance which is why we are fortunate that the founding fathers had the wisdom to create three branches of government.

        On the flip side, if you asked a liberal the opposite question, e.g. if they felt the US would be better off if there were no conservatives and all people adhered strictly to all of the Democratic Party’s platform, they would answer a resounding yes.

        That’s the hypocrisy of the altruistic left.

  • Headlines | The Daily Slog

    […] Ceiling Cuts Worry U of M Grad Students”–headline, WCCO-TV/AM website (Minneapolis), […]

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