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Student Loans

All articles tagged with #student loans

UK graduates say loan terms were unclear, prompting MPs inquiry
politics1 day ago

UK graduates say loan terms were unclear, prompting MPs inquiry

A Treasury Committee inquiry attracted over 52,000 responses showing widespread confusion and frustration over student loan terms, especially Plan 2. Respondents report that 9% of earnings above the repayment threshold go to repayments while the threshold is frozen for years, narrowing finances and potentially hindering mortgage lending and saving. The committee says reforms are needed and will consider options, noting that poorer and middle‑income borrowers may bear more over a lifetime while terms have repeatedly changed.

via BBC|
#plan-2#politics#repayment-terms
Donor Covers Final-Year Debt for NC State's Wilson College of Textiles Grads
education18 days ago

Donor Covers Final-Year Debt for NC State's Wilson College of Textiles Grads

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.

via Raleigh News & Observer|
#anil-kochhar#debt-forgiveness#education
Two Jobs, One Tampa Woman’s Battle Against $75K in Student Debt
personal-finance2 months ago

Two Jobs, One Tampa Woman’s Battle Against $75K in Student Debt

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.

via NBC News|
#budgeting#debt#dual-income
Treasury to Oversee Federal Student Loans in Phased Takeover
policy2 months ago

Treasury to Oversee Federal Student Loans in Phased Takeover

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.

via Business Insider|
#defaulted-loans#federal-student-aid#policy
policy2 months ago

Treasury to Take Charge of Federal Student Loans in a 3-Phase Plan

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.

via Politico|
#default-loans#education-department#interagency-agreement
Treasury to Handle Defaulted Student Loans in Education Department Restructure
higher-education2 months ago

Treasury to Handle Defaulted Student Loans in Education Department Restructure

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.

via The Washington Post|
#education-policy#higher-education#student-loans
politics3 months ago

Caps on Student Loans Tilt Costs Toward Traditional Medical Programs

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.

via Politico|
#education-policy#naturopathic-medicine#one-big-beautiful-bill-act
UK doctor warns student loan interest could keep him paying for decades
education3 months ago

UK doctor warns student loan interest could keep him paying for decades

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.

via BBC|
#debt#education#interest-rates
Voluntary student-loan repayments rise, but Lewis warns overpaying isn’t wise for most
education3 months ago

Voluntary student-loan repayments rise, but Lewis warns overpaying isn’t wise for most

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.

via BBC|
#education#martin-lewis#plan-2
Reeves Defends Frozen Plan 2 Threshold as Fair and Proportional
politics3 months ago

Reeves Defends Frozen Plan 2 Threshold as Fair and Proportional

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.

via BBC|
#inflation-and-interest#plan-2#politics
Hundreds of Borrowers Grapple with Higher Payments as SAVE Ends and PSLF Uncertainty Looms
education4 months ago

Hundreds of Borrowers Grapple with Higher Payments as SAVE Ends and PSLF Uncertainty Looms

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.

via Business Insider|
#debt-relief#education#pslf