Going to Grad School After July 1st, 2012? It Just Got More Expensive.

Thanks to the recently passed debt ceiling legislation, it just became more expensive to attend graduate school if you'll be taking out loans. Graduate students applying for a loan after July 1, 2012 will no longer be eligible to receive subsidized Stafford loans. The $8,500 subsidized loan will instead be converted to unsubsidized funding.

What does this mean for graduate students? For anyone who gets a loan after July 1, 2012- interest will accrue on those loans while they are still in school. Before, the government had paid the interest on the loan for the length of time a student was in school. The legislation also eliminates a rebate students get when they make loan repayments on time for 12 consecutive months.

The change will save the federal government an estimated $26 billion over 10 years. To put that in perspective: consider three months of operation in Afghanistan costs roughly that.

Is there any upside for students? For those pursuing their undergraduate degree, yes. Part of the savings from the student loan cuts will help keep funding for federal Pell Grants. These grants are traditionally awarded to the most financially needy students. Republicans slashed summer Pell grants earlier in the year and many have been attempting to eliminate the Pell grant program altogether.

For a more in depth reading on the Stafford student loan issue, check out CNN Money.