Why Americans Will Get Less Help Paying for College
Summary
Host Rachel Abrams speaks with Ron Lieber about new Trump administration policies capping federal student loans and tying aid to graduate earnings. These measures aim to curb soaring college costs and debt by limiting borrowing for parents and grad students while penalizing programs with low alumni salaries. The discussion explores the history of federal lending, the proliferation of master’s degrees, and potential impacts on university pricing and access.
Topics discussed
Sponsor: Capital One Venture X Card
Introduction: New Trump administration student loan policies
New caps on federal PLUS and graduate student loans
Earnings test for programs to retain federal loan access
Political vs. financial motivations behind the changes
History of student loans from 1980 to the Great Recession
Sponsors: Capital One, American Beverage, Bank of America
Rise of master's degrees and Public Service Loan Forgiveness
Case study: Jed Schaefer's loan forgiveness struggles
University reactions and potential unintended consequences
Conclusion: Need for transparency and consumer awareness
Sponsors: Capital One, American Beverage, Bank of America
Supreme Court rulings on birthright citizenship and campaign spending
Credits and closing sponsor message
Listen ad-free on Castria