USA Today: A federal subsidy that aids graduate students would be eliminated to boost funding for Pell grants that help low-income undergraduates, under the compromise debt-ceiling bill moving through Congress. That trade-off is one of the few program changes specified in the bill.
The maximum Pell grant of $5,550 would be preserved for an estimated 9 million undergraduates, according to the White House.
To pay for that, graduate students who get federally subsidized loans would see the interest on those loans begin to accrue while they’re still in school, beginning July 1 next year. Currently, that interest doesn’t begin accruing until the students graduate. That saves lots of money for doctoral candidates, medical school students, law students and others in long-term graduate programs.