It’s a sad truism that if you are a graduate student, you are probably in debt. While rumors of Obama forgiving all student loans floated around during his campaign, realistically it was unlikely to happen. Still, it was with eager anticipation that I read all of the news sources I could find about the overhaul of the student lending laws.
The Christian Science Monitor helpfully offered a run-down of key components of the legislation:
* Improved repayment options! New borrowers can cap their repayments at 10%, down from 15%. Sadly, this is only for new borrowers, so it doesn’t apply to my old debts.
* A streamlined federal loan system! So, all loans now originate from the same source. No real change here.
* Competitive loan servicing! Wait, this means we get better customer service? So they will be nicer to me when they tell me to pay up?
* Support to stay in school and manage debt! $750 million for classes on financial literacy for low-income students. This is probably a good thing, but I’m wondering how much time cash-strapped low-income students will divert from their classwork and jobs to attend supplementary classes. Will this be mandatory?
* More Pell grant money! Sadly, the amount of money does not match the enormous fee hikes that many colleges are imposing this year.
There is also an additional $4 billion dollars to go to community colleges and historically black institutions. As a former community college attendee, I wholeheartedly support this part of the bill. I was a transfer student and some of my best students at Berkeley are transfer students; I hope that this money will help our valuable, cash-strapped community colleges. Still, the financial impact on my student loans–nada.
So, Derek Thompson from The Atlantic is accurate in his assessment of what the student lending law means for borrowing students: not a whole lot.

























