Under the debt deal that President Obama signed TODAY (August 2), student loan subsidies took a hit, forcing some students to owe more on their loans while in school.

According to USA Today, Congress eliminated subsidies on loans for graduate students in order to preserve the maximum Pell Grant of $5,550. Though good news for low-income undergraduates, the bill puts greater financial burden on grad students who, starting July 1, 2012, will begin accruing interest on their loans while in school. Currently, the government pays the monthly interest on a loan while the student is still in school as well as the six months after graduation. Doctoral students, medical school students, law students and other long-term graduate program students benefit greatly from the subsidy.

As reported by CNN Money, the Congressional Budget Office reported that eliminating subsidized loans will save taxpayers a total of $21.6 billion over the next ten years. For graduate students who qualify for the maximum amount of subsidized loans, however, the change will add several thousand dollars to the cost of going to school. Interest would start accruing while attending school, but students could choose to pay the interest while in school or wait to start payments until after graduating.

So, the questions are:
- What is your opinion of the debt deal President Obama signed today?
- Are you in agreement? Why or Why not?
- What suggestions do you have for current & future students regarding their massive debt load?
- How is this bill going to affect you, your classmates, family and future veterinarians?
- What are you going to do to overcome the [possible] hardships this bill may cause for you?
- I have seen people making jewelry, selling crafts and baked goods, etc. while in vet school in an attempt to earn money. What creative, original things have you seen vet students doing to earn money?
- How do you think the debt deal bill is going to affect the future of veterinary medicine (new grads., etc.)?

I'm looking forward to hearing from everyone!

Kelly McDaniel-Johnson
Mississippi State University College of Veterinary Medicine Class of 2013
VBMA South Region Regional Leader