Obama will try and come out as a hero by proposing a new budget tomorrow on Valentine’s Day 14 Feb 2011, but will consequently give more businesses to private banks giving out private student loans. The budget reaches trillion plus but proposes a deficit cut of .1 trillion over the next decade. He will be cutting down deficits on military spending and limiting tax for the wealthy. However, there is always a catch and always somebody else who will become the victim to pay the burden of the spending cuts. Other areas will be paying for the consequences of the budget plan and one of them is education.

Graduate students will be facing more debt as Obama decides to save on Pell Grants and other higher education financial aid programs. Currently students pursuing in graduate schools are able to take out two grants in one year. This will no longer be possible with the new budget. As graduate students are getting less and less opportunities to take out “free money” that they do not ever have to repay, such as schollarships and government grants, they will turn to federal loans as well as private student loans.

» Read more: Obamas New Budget Plan Encourages Business to Private Student Loans