Appearing in The New York Times on July 17, 2026, Ann Carnns talks to Abby Shafroth, managing director of advocacy at the National Consumer Law Center, about how states are stepping in to help graduate students finance their studies now that federal Graduate PLUS loans have been eliminated for new borrowers.
Borrowers should carefully review the details of the state loans, including the interest rate. “Research and compare terms with the same sort of critical eye as you would with a private loan,” she said. If a loan advertises rates “as low as” a certain number, she said, make sure that rate applies to you.
Abby Shafroth, managing director of advocacy at the National Consumer Law Center.
Also consider what happens if you fail to make your payments, she said. “Very few people think about that when they take out their loans,” she said, because they typically expect all will go well.
Some states “can and will,” for instance, seize tax refunds to cover payments if borrowers fall behind on their state loans, she said. “It depends on the state.” That’s similar to federal loans, in which a default can lead to seizure of tax refunds or garnishing wages to repay the debt.
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