On March 27, 2026, the U.S. Department of Education announced next steps for borrowers who are currently enrolled in the Saving on a Valuable Education (SAVE) Repayment Plan, which is being discontinued. The Department is sending guidance to the 7.5 million borrowers currently enrolled in SAVE on what they need to do next.1 Here are the […]
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Key Higher Education Changes in the New Tax Bill
The One Big Beautiful Bill Act (OBBBA), signed into law in July 2025, includes multiple provisions that affect higher education. Key changes include new borrowing limits for students and parents under federal loan programs, streamlined student loan repayment plans, stricter rules on the ability of borrowers to pause student loan repayment, the promotion of workforce […]
Read MoreInterest Rates on Federal Student Loans Drop Slightly for 2025-2026
Every May, interest rates on federal student loans are reset for the upcoming school year. The rates are calculated by combining the yield on the 10-year U.S. Treasury note with an additional fixed amount set by Congress. Based on this calculation, interest rates on federal student loans are set to decrease slightly for the 2025-2026 […]
Read MoreBorrowers in Default on Federal Student Loans Face Imminent Collection Efforts
On April 21, 2025, the U.S. Department of Education announced that it will resume collections on defaulted federal student loans starting May 5, 2025. The federal government hasn’t collected on defaulted loans since March 2020. Here is some background followed by answers to questions about the new policy. A history of payment pauses and court […]
Read MoreCollege Costs for 2024-2025 March Higher
Every year, the College Board releases new college cost data and trends in its annual report. The figures published are average costs for public in-state, public out-of-state, and private colleges based on a survey of approximately 4,000 colleges across the country. Over the past 20 years, average costs for tuition, fees, housing, and food has […]
Read MoreFederal Appeals Court Blocks SAVE Student Loan Repayment Plan
On August 9, 2024, the U.S. Court of Appeals for the 8th Circuit officially blocked the SAVE student loan repayment plan in its entirety, saying the injunction would remain in place “until further order of this court or the Supreme Court of the United States.”1 The ruling replaced a temporary order issued by the same court […]
Read MoreInterest Rates on Federal Student Loans Jump to Decade Highs for 2024-2025 Year
Every May, interest rates on federal student loans are reset for the upcoming school year. The rates are calculated by combining the yield on the 10-year U.S. Treasury note with an extra fixed amount set by Congress. Based on this calculation, interest rates on federal student loans are set to increase for the 2024-2025 school […]
Read MoreWatch Out for Student Loan Repayment Scams
This past June, the Supreme Court struck down President Biden’s plan to cancel up to $20,000 in federal student loan debt for qualified borrowers. As a result, millions of student loan borrowers are scheduled to start paying back their loans in October after a three-and-a-half-year reprieve. Fraudsters and scam artists have already begun to prey […]
Read MoreU.S. Supreme Court Blocks Student Loan Cancellation, Payments to Resume
Three important developments occurred recently in the world of federal student loans: the U.S. Supreme Court blocked an executive order offering loan cancellation to certain borrowers; Congress set an expiration date for the payment moratorium that has been in effect since March 2020; and new student loan interest rates have been set for the 2023–2024 […]
Read MoreSECURE 2.0 Offers New Options for 529 Plans and Student Loan Payments
In December 2022, Congress passed the SECURE 2.0 Act. It introduced two new rules relating to 529 plans and student debt that will take effect in 2024. The first provision allows for tax- and penalty-free rollovers from a 529 plan to a Roth IRA. The second provision allows student loan payments made by employees to […]
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