All articles tagged with #student loans
At the Wilson College of Textiles commencement, donor Anil Kochhar announced his family would cover all final-year education loans incurred by graduates during the 2025–26 academic year, a gift in honor of his father Prakash Chand Kochhar, sparking a standing ovation as students gained financial freedom to pursue their goals.
Patrick Ball, star of HBO Max’s The Pitt, tearfully revealed to Cultured magazine that the series helped wipe out about $80,000 in student loan debt within three months of joining, a transformative moment after years of financial hardship and juggling multiple jobs.
Patrick Ball says his The Pitt paycheck helped him pay off about $80,000 in student loans, lifting a heavy burden that had strained his relationships and aligning with the show's critical success.
A Tampa woman, Rachel Jordan, juggles two jobs and up to 70 hours a week to manage roughly $75,000 in student debt while her loans are in forbearance; she budgets tightly, aims to pay $1,600–$2,000 monthly, and documents her debt-paydown journey on YouTube and TikTok as she tries to pay off $25,000 by October, save $100,000 for retirement, and navigate the uncertainty of forgiveness decisions for her two undergraduate loans.
Education Department will transfer the $1.7 trillion federal student-loan portfolio to the Treasury in phases, starting with about 9 million defaulted accounts; Treasury will handle default-collections and advise borrowers on returning to repayment, while borrowers should keep paying through their current servicer and watch for new repayment options. Advocates warn the move could worsen hardship and that Treasury lacks borrower-rights expertise; the shift follows a January pause on collections and comes as Biden’s SAVE plan is eliminated and Trump’s repayment overhaul pushes millions into new plans. The exact timeline for the pause and full rollout remains unclear.
The Trump administration will shift the collection of defaulted federal student loans from the Education Department to the Treasury, with Treasury eventually providing operational support for current loans as part of a broader effort to overhaul a $1.7 trillion federal student debt portfolio.
Education officials unveiled a three-phase plan to gradually transfer the roughly $1.7 trillion federal student loan portfolio from the Education Department to the Treasury, starting with defaulted loans, then non-defaulted loans, and finally program enforcement, aiming for a seamless transition but drawing questions from critics about oversight and potential red tape.
The Education Department says the Treasury Department will take over collecting on defaulted student loans as the first phase of a three-step plan to spin off key functions from the department; supporters say Treasury is better equipped to manage debt collection, but critics worry the change will confuse borrowers and signal broader dismantling of Education Department.
Proposed caps from the One Big Beautiful Bill Act would limit graduate loan borrowing to $100,000 and professional-degree borrowing to $200,000, a change Education Department officials say would curb tuition growth but critics warn it favors established medical schools over nontraditional programs like naturopathic, herbal, and other alternative therapies, potentially worsening healthcare workforce shortages; lawmakers and trade groups across health fields are lobbying to adjust the rules, while Kennedy’s health agenda faces opposition from conventional medical groups and some nursing advocates.
A UK doctor says his student loan debt has grown from £55,000 to about £80,000 due to roughly £25,000 in interest, with around £3,000 added this tax year and only half of that paid off. Interest accrues immediately and can reach up to 6.2%, delaying plans like buying a home. Loans are written off after 25–40 years depending on the region, and while the government defends the system as fair, graduates and policymakers are pushing for reform.
BBC analysis shows voluntary repayments on Plan 2 student loans in England rose from £141.7m to £491.1m between 2017 and 2025 as graduates try to clear debt. Martin Lewis warns that only higher earners typically benefit from extra payments and most borrowers shouldn’t panic into overpaying, since small extra sums rarely shorten the 30-year term. The trend is driven by high earners and family considerations, while policy moves like freezing the repayment threshold complicate incentives. The Student Loans Company does not publish individual breakdowns, and campaigns call for reform to the loan system.
Chancellor Rachel Reeves argues the three‑year freeze of the Plan 2 student‑loan repayment threshold to £29,385 from April 2027 is fair and aligns repayment systems, despite critics who say it treats loans like a tax. The current threshold is £28,470; the freeze would push higher earners into larger repayments and, with Plan 2 interest at RPI plus up to 3%, could raise the overall cost for borrowers. Reeves also extends the freeze on income tax and National Insurance thresholds, noting Plan 2 loans were introduced with higher university fees between 2012 and 2023. The debate centers on fairness and the impact of inflation on borrowers.
Millions of borrowers with defaulted federal student loans could have their income tax refunds seized under resumed government collection efforts; taxpayers can call a Treasury Department number to check if they’re on the offset list before filing, with the tax season opening Jan. 26.
Business Insider gathered responses from more than 400 student-loan borrowers about repayment and relief experiences amid sweeping changes to federal programs, including the elimination of the SAVE plan, new repayment rules, and PSLF uncertainty. Many fear higher monthly bills, potential wage garnishments for defaults, and difficulty getting help from servicers, even as a subset reported forgiveness or progress toward forgiveness.
Falling behind on student loans can hinder rental applications, but borrowers can improve their chances by resolving delinquencies, being transparent about credit issues, highlighting strengths, using guarantors, and advocating for themselves with landlords.