Just like an earlier proposal that was going to tax grad tuition scholarships, or eliminate teacher supplies deductions this likely will either not happen or be changed.
Maybe grad plus won’t be available for just any grad degree, because too many of those are in default or in severe Income Based Repayment. But I really doubt that grad plus won’t be available for MD, PA, Dental, and NP programs. Law school may be in jeopardy likely because too many graduate with very high debt yet aren’t earning much for a very long time.
For the other degrees (ones that don’t pay well), they may have to turn to Discover, Wells Fargo, etc, which offer Student Loans at competitive rates. The difference is that those don’t have IBR…which will make people pause before taking out those loans…something that is NOT happening to people who rack up fed grad plus loans knowing that they can IBR later…which costs all of us. The current system encourages irresponsible debt.
Parent Plus also encourages irresponsible debt because it does not look at income and the “credit check” is extremely minimal…does not look at credit score…and leads to parents feeling pressure to take on hundreds of thousands of dollars in loans that there is no way for them to repay.