May 28, 2025
The Challenge: A Complex and Inefficient Student Loan System
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May 22, 2025
Course Correction: Rebuilding The Federal Student Loan System After Biden’s Mismanagement
Key Points Introduction Thirty-five million federal student loan borrowers went back into repayment in October 2024 after the government had suspended their student loan payments, in effect, for four and a half years. Already, delinquencies have shot up, and a wave of loan defaults looms. Borrowers will feel the pain—but so will the federal budget…
May 7, 2025
Colleges Must Help Return Student Borrowers to Repayment
The four-year pause on student loan payments has left behind an alarming fallout: Millions of student borrowers, having disengaged from the student loan system, are not making payments on their debts. Now, the Education Department is asking for help from colleges to get borrowers paying their loans again. On Monday, the Department issued a Dear Colleague Letter to…
May 7, 2025
Republicans Unveil Plan to Rein in Student Debt and Waste in Higher Education
In a significant development for higher education policy, House Republicans have unveiled a sweeping proposal to reform student loans and financial aid through the federal budget reconciliation process. This effort, which complements President Trump’s recent executive order on accreditation reform, signals a renewed push to rethink how the federal government supports students and holds institutions accountable for…
May 5, 2025
What’s in House Republicans’ Student Loan Overhaul
House Republicans have introduced a comprehensive student loan overhaul as part of the broader budget reconciliation process. Known as the “Student Success and Taxpayer Savings Plan,” the package of reforms aims to save hundreds of billions of dollars through new student loan limits, changes to the repayment system, and policies to hold colleges accountable for their outcomes. If enacted,…
April 30, 2025
The Student Loan Bubble Is about to Pop
At the outset of the covid-19 pandemic, federal student-loan borrowers won what appeared to be a reprieve. That five-year pause on payments and interest accumulation is now shaping up to be a curse in disguise. Last week, the Trump administration drew criticism for announcing that the Education Department would resume involuntary collections next month. But the squeeze…
April 28, 2025
House Republicans’ Proposed Repayment Plan Fixes Vexing Student Loan Problem
Congressional Republicans are undertaking a massive budget reconciliation effort involving significant reforms to the federal student loan system. House Republicans introduced their proposal on Monday, which would sweep away the maze of nearly a dozen different loan repayment plans and create just two: a standard repayment plan and an entirely new income-driven repayment (IDR) plan. In addition…
April 25, 2025
Trump Administration Announces Plan to Get Borrowers Paying Student Loans Again
The U.S. Department of Education announced on Monday that it would resume involuntary collections of defaulted federal student loans on May 5. The announcement means that borrowers who have loans in default could see their tax refunds seized or wages garnished. While many borrowers and advocacy organizations will oppose the move, resuming collections is necessary to incentivize loan repayment….
April 24, 2025
It’s About Time: Bring Back Those Student Loan Collections
This week, the Department of Education announced that on May 5 it will begin collecting on defaulted student loans. This will be the first time since March 2020 that borrowers who have either chosen not to or been unable to make their student loan payments will once again face significant financial consequences for their delinquency. Borrowers…
April 17, 2025
Turn Public Service Loan Forgiveness into a State Block Grant
As Congress negotiates a bill to overhaul the federal budget, lawmakers looking to save money should note $30 billion in potential savings hiding in plain sight. The Public Service Loan Forgiveness (PSLF) program, which fully discharges the student loans of borrowers who work for the government or a nonprofit for 10 years, is one of…