Both versions of the bill also include accountability provisions that impact institutions of higher education. The Senate’s accountability provision significantly differs from the House's risk-sharing approach. Under the Senate proposal, a professional program would lose eligibility for federal student loans if its graduates’ average earnings ten years after enrollment fall below the average salary of 25–34-year-old bachelor’s degree holders. In contrast, the House bill proposed a risk-sharing model based on a debt-to-earnings ratio that financially penalizes institutions for unpaid student loans incurred by their graduates.
Osteopathic medical students and colleges of osteopathic medicine will be significantly harmed by these proposals.
Grad PLUS loans help make osteopathic medical education more accessible, and over 80% of last year’s students had Grad PLUS loans. Eliminating Grad PLUS loans would send borrowers to the less-protected, higher-cost private loan market. At a time when there is a physician shortage, it is important that we do not place economic barriers on eligible students who want to participate in the Grad PLUS program.
Please join the osteopathic medical education community in urging your Members of Congress to protect the Grad PLUS Loan Program, oppose federal borrowing caps, maintain PSLF eligibility for medical residency and reject unfair risk-sharing/accountability policies that harm COMs and students.