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Student Loans

All articles tagged with #student loans

education13 days ago•319 min saved

Federal student-loan overhaul takes effect July 1, reshaping repayment and borrowing caps

A sweeping overhaul of the federal student loan program signed by President Trump takes effect July 1, 2026. It introduces a new tiered standard repayment and a Repayment Assistance Plan (RAP) for new loans, caps graduate and Parent PLUS borrowing, and phases out existing repayment plans by 2028. Current borrowers won’t see immediate changes, but they’ll be transitioned to new options later. Auto‑pay discounts rise to 1% through September 2028, and critics warn the new rules could raise costs or reduce borrowing access for some students, even as supporters say the reforms simplify the system and improve loan health.

via CNN|

#education #federal-loans #grad-plus

higher-education14 days ago•19 min saved

Mass. Judge Blocks Trump-Era PSLF Eligibility Rules for Public Servants

A federal judge in Massachusetts (U.S. District Judge Myong J. Joun) struck down the Trump administration’s revised Public Service Loan Forgiveness eligibility rules, ruling they unlawfully allowed disqualification of employers for DEI or other policy positions not enacted into law, and the decision came just before the PSLF rule was to take effect.

via The Washington Post|

#donald-trump #higher-education #lawsuits

education14 days ago•3 min saved

Court Order Expands Higher Grad-Loan Eligibility for Select Professions

A federal judge paused the Education Department’s narrowed definition of 'professional degree,' allowing more graduate programs to qualify for the higher $50,000 annual loan cap (up to $200,000 total) instead of the $20,500 cap for other grads; the updated list now includes more than 20 degrees, such as nursing, physician assistants, and speech-language pathology, though the list could still change and the caps themselves remain in place.

via CNBC|

#courts #education #federal-aid

business15 days ago•22 min saved

Pandemic pause leaves borrowers more indebted as payments restart

A Washington Post analysis finds that while the pandemic pause on federal student loan payments reduced immediate financial strain, many borrowers used the extra time to incur other debts, and delinquencies have risen since payments resumed, with older and lower-income borrowers most affected. Although the pause was extended, new repayment options may still strain household finances.

via The Washington Post|

#business #debt #economic-policy

education-policy18 days ago•37 min saved

Court Rejects ED's Narrow 'Professional' Degree Rule for Student-Loan Caps

A federal judge in the District of Columbia voided the Education Department’s rule that narrowly defined 'professional' degrees for higher loan borrowing caps under the One Big Beautiful Bill Act, saying Congress intended the statutory definition to govern and that ED’s extra eligibility criteria went beyond what law requires. The ED had limited higher loan eligibility to 11 programs (e.g., pharmacy, dentistry, law, medicine, etc.), excluding others from the higher caps. Howell stayed the rule pending further litigation; the ED is reviewing the ruling and has not indicated whether it will appeal. The decision creates uncertainty about which programs qualify as 'professional' and could impact funding for advanced healthcare and other fields.

via Inside Higher Ed|

#court-decision #education-policy #higher-education

politics19 days ago•13 min saved

Court blocks Trump-era caps on graduate student loans

A federal judge blocked enforcement of certain Trump-era caps on federal student loans for graduate programs, delaying parts of the policy while litigation continues and signaling a setback for the administration's borrowing rules.

via AP News|

#court-ruling #education-policy #graduate-loans

politics19 days ago•2 min saved

Senate Keeps Graduate Loan Caps in Place as July 1 Looms

Senate Republicans blocked a Democratic bid to repeal Trump-era regulations that create new federal graduate loan caps, with the new rules set to take effect on July 1 under the One Big, Beautiful Bill; the reforms include eliminating Grad PLUS, capping aggregate borrowing at $200,000, and limiting Parent PLUS loans while undergraduate lending remains largely unchanged. Critics say the caps shield borrowers from predatory lenders, while supporters warn they could burden health-care education and staffing, particularly in graduate nursing programs; the measure to reverse the rules failed along party lines.

via USA Today|

#education-department #graduate-education #loan-caps

finance20 days ago•3 min saved

Auto-pay perk expands: 1% interest cut for qualifying Direct Loans

The Education Department is offering a 1 percentage-point interest-rate discount for federal Direct Loans when borrowers enroll in autopay, a benefit that lasts through June 30, 2028. Eligible loans include Direct Subsidized, Direct Unsubsidized, Direct PLUS, and Direct Consolidation (including Parent PLUS if the loan is Direct); FFEL and private loans are not eligible. Loans must be disbursed on or after July 1, 2012 and be in good standing. Borrowers already in autopay receive the discount automatically; new enrollees must sign up by Sept. 30, 2026 and remain enrolled to keep it. As always, verify payments with your loan servicer to avoid autopay errors.

via CNBC|

#autopay #direct-loan #finance

politics22 days ago•3 min saved

Education Dept Moves 7.5 Million Borrowers Off Biden's SAVE Plan to Simplify Student Loans

The Education Department announced a major shift to streamline Biden-era student debt programs: about 7.5 million SAVE plan borrowers will have 90 days to exit starting July 1 and be directed toward two Trump-era repayment options (the Repayment Assistance Plan and the Tiered Standard Plan). SAVE borrowers collectively owe roughly $365 billion; the department says the current system’s 40+ options are overly complex and created bottlenecks, with the Biden plans slated to be shut down by 2028. More than 300,000 SAVE borrowers have already moved to RAP, which requires payments of 1–10% of earnings and forgives remaining debt after 30 years if not fully paid; the Tiered Standard Plan can extend repayment up to 25 years. The move follows a court ruling that struck down the original income-driven plan, and the department says this is about simplifying access and placing responsibility on Congress rather than the department.

via New York Post|

#biden-administration #education-policy #politics

higher-education26 days ago•18 min saved

Autopay boosts student-loan discounts to 1%, expanding borrower savings

The Education Department announced that borrowers who enroll in autopay will receive a 1-percentage-point discount on their loan’s interest rate, up from the usual 0.25 points, with the discount taking effect July 1 and running through June 30, 2028. The policy could save borrowers hundreds to thousands over the life of their loans and is estimated to cost about $6 billion. The package also introduces new repayment options, including an income-driven plan, as part a broader set of student-loan affordability changes.

via The Washington Post|

#apologies #debt #education-policy

business28 days ago•5 min saved

New era in US student loans as repayment rules tighten from July 1

The US is overhauling its federal student-loan repayment system: the Save plan ends July 1 after a court ruling, forcing borrowers to pick a new plan within 90 days; existing loans can use IBR, PAYE, or ICR or be moved to fixed plans, though most of these will tighten forgiveness and be phased out by 2028. New borrowers will get RAP and a tiered standard plan, while fixed plans often require higher payments, signaling a shift toward less forgiving terms and sparking concern among graduates.

via The Guardian|

#business #debt-repayment #federal-student-loan

finance1 month ago•4 min saved

Smart tax moves can shrink payments under the new RAP plan

The new Repayment Assistance Plan (RAP) starts July 1 and bases monthly student-loan payments on 1%–10% of adjusted gross income with a $10 minimum. Because RAP uses AGI rather than protected expenses, borrowers can lower their payments by reducing AGI with pretax contributions to 401(k) or traditional IRA, HSAs/FSAs, self-employed deductions, and other above-the-line deductions like student loan interest, plus per-dependent savings of $50. A borrower with a $59,999 AGI could pay about $50/month less than someone at $60,000. However, RAP can lead to higher total costs over the life of the loan (forgiveness after 30 years vs 20–25 years on other plans). RAP will be the only IDR option for new loans after July 1; existing loans can still access IBR, ICR, PAYE until mid-2028. If RAP offers the lowest monthly payment, borrowers should compare it to other plans and consider timing, since switching later may affect forgiveness credits and overall cost.

via CNBC|

#agi #finance #income-driven-repayment

education1 month ago•3 min saved

7 Million SAVE Borrowers Face Higher Payments Under New Repayment Rules

Starting July 1, the Education Department will warn borrowers on the SAVE income-driven plan to switch to a different repayment option. If they don’t act within 90 days, they’ll be automatically placed in either the standard or the new tiered standard plan, both generally more expensive than current income-driven options. The tiered standard plan would require paying off the principal over a set term with a $50 minimum monthly payment, while the Repayment Assistance Plan (RAP) would base payments on adjusted gross income and is also costlier than existing options. Lawmakers are urging automatic enrollment in the cheapest available plan, while the changes coincide with broader provisions from a recent spending bill that affect borrowing limits for advanced degrees and parental loans.

via Business Insider|

#education #education-policy #rap

money1 month ago•233 min saved

Three Dates That Will Reshape Federal Student Loans This Summer

Federal student loans are set for sweeping changes this summer: June 15 will bring discharge notices for the last group of Sweet v. McMahon Borrower Defense applicants; June 30 is the consolidation deadline for Parent PLUS loans to preserve IDR eligibility and forgiveness options; and July 1 introduces the RAP repayment plan, winds down the SAVE plan, and imposes new PSLF limits plus a Tiered Standard option, so borrowers should consolidate by June 30 if possible and get ready for tighter repayment and forgiveness rules going forward.

via Forbes|

#consolidation #federal-student-loans #loan-forgiveness

education1 month ago•3 min saved

Eight Federal Student-Loan Shifts Borrowers Must Watch Ahead of July 1

Federal student-loan policy is tightening before July deadlines: the SAVE plan has ended and borrowers must pick a new repayment plan within 90 days; ICR and PAYE are being phased out by 2028, leaving Standard or RAP (1–10% of AGI) with a $10 minimum and 30-year forgiveness. Parent PLUS loans must be consolidated and placed in an IDR by July 1, 2026 to keep benefits, with existing borrowers potentially remaining on current plans until 2028. New borrowing limits take effect July 1, 2026 (e.g., up to $65,000 lifetime for Parent PLUS; graduate loans $20,500/year; professional loans $50,000/year). Existing Parent PLUS loans face no limits for up to three more years. Deferment and forbearance programs are being eliminated for newer loans starting July 1, 2027, with forbearance capped at nine months every two years. FAFSA remains required and private loans remain available; borrowers should check studentaid.gov for current options.

via Yahoo Finance|

#borrowing-limits #education #federal-policy