All articles tagged with #federal student aid
The Federal Student Aid Training Conference will be held in person from March 4-6, 2026, at the Ronald Reagan Building in Washington, D.C., offering updates on policies, keynotes, and networking opportunities for financial aid professionals, with recordings available and future virtual events planned.
Many federal student loan borrowers are unaware of available relief programs like income-based repayment plans and loan forgiveness, leading some to pay more than necessary; increasing awareness and understanding of these options can help borrowers manage and reduce their debt effectively.
During the government shutdown, most Federal Student Aid operations, including processing and customer service, continue with minimal impact, though some websites and communication channels are temporarily on hold. Borrowers should continue making payments, and schools can submit certain reports, but some services and responses may be delayed until the government reopens.
The One Big Beautiful Bill Act, signed into law on July 4, 2025, introduces immediate changes to federal student loan programs, including removing the partial financial hardship requirement for income-based repayment plans, allowing certain consolidation loan borrowers to enroll in IBR, reducing annual loan limits for part-time students, and amending the Public Service Loan Forgiveness program to include payments under the new Repayment Assistance Plan. It also delays the implementation of certain Biden Administration regulations related to borrower defense and closed school discharges, restoring previous regulations for loans before July 1, 2035.
Congress passed President Trump's 'Big Beautiful Bill,' which overhauls student loan repayment by eliminating existing income-driven plans, introducing two new options, and imposing new restrictions on borrowing and deferment, potentially making repayment more difficult for borrowers and reducing available assistance programs.
The Education Department is conducting a comprehensive review of its Federal Student Aid office following significant delays and errors in the rollout of the revamped FAFSA form. Secretary Miguel Cardona announced leadership changes, the hiring of IT experts, and the involvement of the Boston Consulting Group to recommend improvements. The department aims to enhance oversight, accountability, and operational efficiency to better serve students and educators.
The Education Department has extended the deadline for student loan borrowers with FFEL loans to consolidate into the federal direct loan program in order to benefit from a one-time account adjustment. The new deadline is April 30, 2024. Borrowers with federal loans managed by the Education Department do not need to take any action to benefit from the adjustment. The account adjustments have already provided debt cancellation to thousands of borrowers, and by July 2024, all borrowers will receive updated payment counts to ensure accurate progress towards forgiveness. The Education Department is also implementing measures to protect vulnerable borrowers, including a 12-month "on-ramp" period and the development of a new student-debt relief plan.
The U.S. federal government is facing a potential shutdown just as student loan payments are set to restart after a three-year pause. The White House has warned that a prolonged shutdown could disrupt the return to repayment efforts for around 40 million Americans. While most federal student loans are managed by loan servicers and contractors, certain processes that require consultation with the Education Department, such as eligibility confirmation for Public Service Loan Forgiveness, could be delayed. However, borrowers should still be able to make changes to their loans and access information through their loan servicer and studentaid.gov.
The US Department of Education has approved over $42 billion in federal student loan debt forgiveness for more than 615,000 borrowers in the past 18 months as part of the Public Service Loan Forgiveness program. The program is aimed at getting more people to work in public service jobs and cancels a borrower’s remaining student debt after 10 years of public interest work or 120 monthly payments. The program is separate from President Joe Biden’s student debt relief plan, which would wipe away or reduce loans for millions of borrowers regardless of what field they work in.
The US Department of Education has approved over $42bn in federal student loan debt forgiveness for more than 615,000 borrowers in the past 18 months as part of the Public Service Loan Forgiveness program. The program is open to teachers, librarians, nurses, public interest lawyers, military members, and other public workers. It cancels a borrower’s remaining student debt after 10 years of public interest work, or 120 monthly payments. The program is separate from President Joe Biden’s student debt relief plan, which would wipe away or reduce loans for millions of borrowers regardless of what field they work in.