The Other Big Test: Why Congress Should Allow College Students to Borrow More Through Federal Aid Programs

65 Pages Posted: 23 Jul 2011 Last revised: 2 Jun 2012

Jonathan Glater

University of California - Irvine School of Law

Date Written: June 23, 2011

Abstract

Student loan borrowing has increased dramatically in recent years as the cost of pursuing higher education has risen. Because family incomes and the amount that students can borrow through federal loan programs have not kept pace, more students take out private education loans, which carry worse terms and fewer repayment options, from banks and other lenders. Graduates’ debts affect their life and career decisions in socially undesirable ways, and existing loan repayment assistance and forgiveness programs intended to ameliorate the burden do not address private loans. This article proposes significant increases in the amount students can borrow through federal loan programs, reducing or eliminating the need for private loans. Properly designed, the proposal also addresses the negative effects of debt on graduates’ life and career choices.

Suggested Citation

Glater, Jonathan, The Other Big Test: Why Congress Should Allow College Students to Borrow More Through Federal Aid Programs (June 23, 2011). New York University Journal of Legislation and Public Policy, Vol. 14, 2011; UC Irvine School of Law Research Paper No. 2011-26. Available at SSRN: https://ssrn.com/abstract=1871305 or http://dx.doi.org/10.2139/ssrn.1871305

Jonathan Glater (Contact Author)

University of California - Irvine School of Law ( email )

401 E. Peltason Dr.
Ste. 1000
Irvine, CA 92697-1000
United States

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