KC Counts talks with NMSU Graduate School Dean Dr. Ranjit Koodali about new federal restrictions on borrowing. Here's a transcript of their conversation:
KC Counts:
Tell me what the financial value transparency framework is.
Dr. Ranjit Koodali:
Sure. So, in theprevious administration, in the Biden administration, the FVT is currently in effect, and it essentially provides information for prospective students about the debt-to-earnings ratios for every program. This is mandated by the Department of Education, and the alumni earnings are measured after three years of their post-graduation.
KC Counts:
Okay, so this is kind of to say, what is your ROI?
Dr. Ranjit Koodali:
Absolutely, but it's mostly to provide information and give agency and independence to an individual upfront, because they might know, they will know, what the lifetime earnings of a particular program will be. And this is the transparency up ahead before a student applies for and is admitted to a program.
KC Counts:
Do you know whatthe lifetimeearnings for radiois?
Dr. Ranjit Koodali:
Not at the top of my head.
KC Counts:
$7,000.
Dr. Ranjit Koodali:
Ohmy goodness.
KC Counts:
I kid. So, getting a look at this information helps students obviously make really important decisions.
Dr. Ranjit Koodali:
Absolutely. So, it, for example, we know, for example, a mental health counselor, a social worker, their lifetime earnings, KC, is going to be significantly lower than that of, for example, a student earning a Master of Science in computer science. Yet, these professions provide very critical, important societal contributions. And there are individuals driven to this profession, but it is to let them know this is the cost of education for two years, typically for a master's program. And in your lifetime, you will be making this median salary.
KC Counts:
Okay. Now, as with so many other things under the Trump administration, this framework is changing. Tell us how.
Dr. Ranjit Koodali:
Absolutely. So now the onus is on programs to provide a public disclosure and allow students to make a choice. So now the Trump administration is going one step ahead. And their intent is they realize that student loan debt has crossed a trillion dollars. And their intent is good. They do not want students to be saddled with huge debts. However, a number of us in the graduate education space feel that it might be too punitive. So what is proposed is what is called a student tuition and transparency system. And alumni are going to be looked at in terms of their earnings after four years. And the biggest challenge is the requirement that graduates must outearn bachelor degree programs, or those programs will lose the ability to offer federal financial loan. That seems to be a little punitive from a number of experts in this area.
KC Counts:
Tell me what your efforts are right now in terms of educating or advocacy.
Dr. Ranjit Koodali:
Absolutely. So there have been significant changes in the federal financial aid through the One Big Beautiful Bill Act that poses lifetime limits on students securing graduate federal financial aid. The Grad PLUS loan is eliminated. And there are also changes to the designation of what constitutes a professional degree.
KC Counts:
We've heard that in terms of nursing, for example.
Dr. Ranjit Koodali:
Absolutely. And there are efforts now to bring back nursing by Congressto bea professional degree.Soa number ofhigher education advocacy groups like the Council of Graduate Schools, American Council on Education,they'reconcerned by posing limitations on graduate students to make use of federal financial aid. So that is happening at the national level through these organizations. From the institutional perspective, very soon the Office of Financial Aid will be providing information about the new federal financial aid guidelines to newly admitted graduate students so they can come to an informed decision as to the loan that they can apply for and receive from federal financial aid, and if required, if they have to go to private lenders.
KC Counts:
I guess that's, oh my gosh, I can't even imagine. So, this obviously has an outsized impact on a graduate student who's got some education under their belt - halfway there, say. What advice do you have for them at this point?
Dr. Ranjit Koodali:
So fortunately, KC, the state of New Mexico is really at the forefront in trying to address these workforce development shortages, especially in critical areas, teaching, nursing, public health professionals, et cetera. And the state, through the New Mexico Higher Education Department, NMHED, has a lot of loan repayment programs. So, the College of Health Education and Social Transformation is advising prospective students and admitted students about opportunities to make use of these loan repayment programs. There are eligibility criteria and service requirements so that, one, we provide opportunities for students to get financial aid through a loan, and also serve this great state of New Mexico where there are critical shortages.
KC Counts:
All right. What else is important for graduate students or folks on the outside looking in to know?
Dr. Ranjit Koodali:
Absolutely. So the intent of the federal government is really good, but we think it is a little punitive. Unfortunately, states like New Mexico are attuned to these big changes happening at the federal level and are offering opportunities for graduate students through this loan repayment program. So better outreach of these loan repayment programs, graduate assistant available at New Mexico State University are opportunities for graduate students to look into to pay their cost of education for their graduate studies.
KC Counts:
And that's something that we've actually heard a lot about in recent years is those graduate students who are looking for better wages and whatnot, anything on the horizon that you can tell us about along those lines?
Dr. Ranjit Koodali:
Absolutely. So, we just had the collective bargaining agreement with the Graduate Workers Union. And very soon we expect the NMSU Board of Regents to ratify. We are providing full tuition of up to nine credits starting in fall. And that is commensurate with the university with an R1 status. So, we are moving the needle in terms of compensation and tuition remission. So since I started here, KC, we have gone from two credits of support to 4.6 credits to six credits now to full tuition support of nine credits, and we have increased the wages as well during the past three and a half years. So as immense pressure is put on graduate education at the university level, we are trying to provide incentives to recruit the best and talented students to our fine high-quality graduate programs.
KC Counts:
What is your greatest concern with these changes coming in?
Dr. Ranjit Koodali:
The greatest concern is if people are looking at social media and newspapers, they might be alarmed by the sweeping changes. And I think better outreach from entities like NMHED and institutions, public institutions, that value graduate programs and graduate education is a critical need, and Itruly appreciatethe opportunity to have KRWG spread the word around opportunities available.
KC Counts:
What places do you recommend are the best for folks to visit to get more information?
Dr. Ranjit Koodali:
So, I think our websites have information about the New Mexico HED Loan Repayment Program. My colleagues in the College of Health Education and Social Transformation are providing guidance to prospective and admitted students. And likewise, the Office of Financial Aid is providing accurate and timely information about federal financial aid. So collectively, I think our outreach efforts will help students make an informed decision.
KC Counts:
All right. Well, Dr. Ranjit Koodali, thank you so much for sharing that information with us. We appreciate it.
Dr. Ranjit Koodali:
Thank you. It's a pleasure, KC.
You can learn more about the new federal requirements taking effect July 1st, right here.
