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Department of Education announced this week that its Office of Federal Student Aid (FSA) will resume collections on defaulted federal studentloans beginning Monday, May 5, 2025, ending a pause that has been in effect since March 2020. million borrowers owing more than $1.6
The American Federation of Teachers (AFT) and other unions filed a federal lawsuit Monday alleging that DOGE staff, including a 19-year-old with a history of leaking information, have been given improper access to millions of Americans' sensitive studentloan data, Social Security numbers, and other private records.
A new National Consumer Law Center (NCLC) report analyzes a Unified Servicing and Data Solution (USDS) contract, set to go live in the spring, and its potential impact on studentloan borrowers’ rights and experiences. Alpha Taylor The U.S.
“It’s been an incredibly challenging and chaotic year in studentloan space,” said Persis Yu, deputy executive director and managing counsel at the Student Borrower Protection Center, a nonprofit organization working to eliminate student debt. It’s been incredibly hard for borrowers to get good, accurate information.”
Which Students Have the Most Difficulty Paying for College? W hile other resources reveal how much institutions charg e students and how much the y receive in grant s and loan s , NPSAS and BPS are the only source s of information about how students pay for college and how those choices affect future outcomes.
Tina Smith, D-Minn, and Chuck Grassley R-Iowa, have reintroduced three bills to help students and families make informed decisions about borrowing for college. Tina Smith The bills aim to make sure that students are informed and educated about college search and selection, loans, and financial aid.
Federal Student Aid has provided guidance on how borrowers who made federal studentloan payments in 2024 should report this information to the IRS for the upcoming tax year.
Nearly a third of borrowers whose federal studentloans entered repayment in October 2023, following the COVID-19 pandemic extended pause, are past due on the payments, according to a newly released report from the U.S. The above pie chart shows the number of federal studentloan borrowers in repayment by status, as of Jan.
It’s important to submit the FAFSA application as soon as possible after October 1 due to its use as the source of information for financial aid programs that have limited funds. Advantages of Federal Direct Loans Federal Direct Loans come with numerous advantages that make them a popular choice for financing a college education.
But at the highest levels of power, where decisions about studentloan policy are made, race is barely discussed at all. Lawmakers used labels like “some students,” “students truly in need,” and “underserved students” to refer to minoritized groups while avoiding the proposal of amendments that would explicitly benefit them.
In January, we shared that the Department of Education had added important new information to studentaid.gov showing borrowers their progress toward being debt-free through Income-Driven Repayment (IDR) plans. Borrowers should therefore save this information while they can, in case it is removed from their accounts. Do it today!
If a former student is past due on a Federal studentloan, there is an obvious way to bring the loan account current. Each type of Federal studentloan has a unique set of terms and conditions that determine the way interest is treated. This is due to their status as need-based student aid.
The policy incorporates information already collected in the FAFSA form, which is used to distribute Pell Grants. Despite collecting information on family wealth, traditional Pell Grants are distributed based on income and less-so on non-liquid assets like real estate or investments. “We
Tiffane Cochran The student debt report, " Student Debt, COVID-19 Relief, and Loan Forgiveness: Perspectives from Today’s Young Lawyers ," was conducted between April and May. The data were analyzed by staff at AccessLex Institute’s Center for Legal Education Excellence.
Whether you are just starting your studentloan journey or have been dealing with studentloan debt for decades, you can use NCLC’s newly created StudentLoan Toolkit to help you take charge of your studentloan situation and move forward. Download the toolkit today!
The deadline to apply to consolidate many older federal studentloans to be included in the one-time payment count adjustment is Tuesday, April 30th. Do I need to consolidate my loans to get additional credit toward debt relief? I have loans I need to consolidate – what do I do next?
But a new report has revealed that an important segment of this population may be largely left out: those who already have studentloans. The finding comes from a study by the Student Borrower Protection Center (SBPC), a nonprofit dedicated to reducing student debt.
In December, the US General Accountability Office (GAO) published a report indicating variation in how colleges show cost and aid information in financial aid offers, which makes it harder for students to compare offers. trillion studentloan debt.
Unfortunately, recent research suggests that many students are not provided clear, concise, and accurate information they need to fully understand the financial implications of the choices they have made. Ensuring that this information reaches students in ways that help them make the best possible decisions is just as critical. [1]
On March 26, 2025, the Department of Education reopened the online application for Income-Driven Repayment (IDR) plans for federal studentloan borrowers. This follows a very stressful period for studentloan borrowers. For more information about PAYE, IBR, and ICR, see here. Read more about consolidation here.),
Update about federal studentloan servicing The U.S. Department of Education, including its office of Federal Student Aid (FSA), is constantly working to improve the studentloan borrower experience.
What are the COVID-19 studentloan relief deadlines for federal debt repayments? You may have heard some studentloan servicers are closing shop — when does that happen? Over next two years: Many federal studentloan servicer contracts due to expire. When do you need to file your FAFSA for this year?
82% of high schoolers who perceived mostly positive coverage when getting college information plan to attend, while only 59% of those who view college as less positive plan to do the same. They mainly get information from school counselors and parents. The main source of college information for non-enrolled people, however, is Google.
According to the GAO report, students who pick a college that is unaffordable for them are more likely to have to cut back on essentials like food while attending and are more likely to drop out. Having more studentloan debt may make borrowers less likely to become homeowners or to be able to save for their own or their children’s futures.
Empowering HBCU students to reshape the political landscape “I don’t want politicians to be relatable, I want them to be reliable. I don’t care if you have hot sauce in your bag; what are you going to do about studentloan debt?”
However, with better guidance, I could be in the same position with a much lower student-related debt and in essence offering my family an even better life if I had attended a community college first. Many students wish they ’ d have more information about the greater financial picture now that they are shackled by studentloans.
Financial aid and scholarships are available, but often not sufficient to bridge the gap, and the burden of studentloans can be a daunting deterrent. Ongoing research to monitor progress and identify effectiveness is crucial for making informed decisions and adjustments to policies and programs. Not dropout rates.
Total and Permanent Disability Discharge (TPD) is a loan discharge program that allows borrowers who are disabled and cannot work to have their federal studentloans canceled. You can find more information on the TPD discharge program and the eligibility requirements here. 20, 2024, to early Mar. 20, 2024, to early Mar.
The National StudentLoan Data System (NSLDS) has released the FAT001 Financial Aid History report, which contains important studentinformation such as grant & loan eligibility, defaults, overpayments, and loan history.
Black workers, particularly young Black workers, have been harmed through a narrative informed by systemic discrimination. The new narrative Asante-Muhammad and the Joint Center hope to encourage is one that centers the young Black worker, engages relevant audiences, and informs future communities. They’re not the only ones.
Many state policies block undocumented students from receiving in-state tuition — even if they completed their K-12 education there — and several states directly prohibit undocumented students from enrolling in many public universities. On top of that, undocumented students are ineligible for any federal financial aid.
In November 2022, the Department of Education published final rules that will change regulations governing a variety of federal studentloan cancellation programs as well as how interest impacts studentloan burdens. To see more information, see our blog post here. .
What You Have to Pay Back: LoansLoans are the money you borrow to help pay for school, but remember: this is money youll have to repay, with interest. There are federal studentloans, which often come with lower interest rates and better terms, and private loans, which can vary in cost.
Frost said in his organizing, he’s seen that young people see the world through the eyes of the most vulnerable and that informs how they see issues. Frost said organizers must engage young people and keep them informed and feeling connected to what’s going on in Washington, DC. Unions are going to be central to that.”
Borrowing studentloans is a significant financial decision that can have long-lasting implications on your student’s future. While loans can help make higher education more accessible, it’s crucial to approach borrowing with careful consideration and awareness.
What’s next for studentloan cancellation? Where can I find more information on returning to repayment? Your Return to Repayment Checklist After nearly three years, the studentloan payment pause officially ended on September 1st. Have problems with your loans? What about the new SAVE plan?
Ive seen how early preparation can help families make more informed decisions. Understanding these factors early will help your child make more informed decisions about financial aid. Additionally, familiarizing yourself with the FAFSA (Free Application for Federal Student Aid) now can help ensure a smooth application process later on.
FSA recently provided updates to the Student Debt Relief Plan. This information is important for former students or college graduates with outstanding federal studentloans. There are two important things to remember right now regarding studentloan forgiveness: these changes apply only to federal student.
Last year, the Department of Education awarded new studentloan servicing contracts to five companies: CRI, EdFinancial Services, Maximus Education, LLC, MOHELA, and Nelnet. The goal of the changes is to improve studentloan servicing, provide better customer service to borrowers, and hold servicers more accountable for their mistakes.
As a society, we should empower veterans and their families to make fully informed decisions about where to go to college, what to study, and how to use their GI Bill benefits. To do that, they need access to better information about student outcomes.
For students preparing to apply for financial aid, the Free Application for Federal Student Aid (FAFSA) is a crucial part of the process. With recent changes to the FAFSA process, it’s important to stay informed about whats going on. This can help to maximize your eligibility for aid and financial aid funding.
The FAFSA will pull your tax information from the IRS, but it’s good to have other documents ready. They’ll all receive your financial aid information automatically, so make sure you include every school you’re considering applying to. Personal Information: This includes your name, address, SSN, and more.
This article provides guidance on planning for studentloans during economic slowdowns. It offers strategies for community college students to manage their finances, explore loan options, and make informed decisions about education financing in challenging economic times.
In 2010, the federal government eliminated the bank-based studentloan program (formerly the Federal Family Education Loan Program, or FFELP) in favor of originating loans directly from the Department of Education). As a result, some companies have decided not to continue serving as studentloan servicers.
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