-
2 weeks ago | 
bankrate.com | Lauren Nowacki |Pippin Wilbers
FAFSA completion rates are consistently lower than college attendance rates among high school graduates. Filling out the FAFSA grants access federal financial aid and loans to help fund your higher education. There are still advantages to completing the FAFSA even if you don’t qualify for federal aid.
-
2 weeks ago | 
bankrate.com | Mark Kantrowitz |Pippin Wilbers
The federal government has strong collection powers for defaulted federal student loans, such as Administrative Wage Garnishment. Borrowers have rights to appeal wage garnishment and protection against employer retaliation. Borrowers should update their contact information and explore options for getting out of default by contacting the Default Resolution Group.
-
2 weeks ago | 
bankrate.com | Mark Kantrowitz |Pippin Wilbers
The U.S. Department of the Treasury is a better match than the Small Business Administration (SBA) for collecting federal student loans, but not ideal. The U.S. Treasury’s pilot collection program for defaulted federal student loans underperformed private collection agencies due to leniency. Using the wage withholding system for student loan payments to reduce defaults and collection costs is feasible but complex.
-
4 weeks ago | 
bankrate.com | Mark Kantrowitz |Pippin Wilbers
Borrowers face long delays and limited support as federal agencies slash staff. Self-advocacy and documentation are more important than ever. Use available tools like StudentAid.gov, student loan servicer websites, and state consumer protection offices to get help.
-
1 month ago | 
bankrate.com | Lauren Nowacki |Pippin Wilbers
On May 22, a federal judge temporarily blocked President Donald Trump’s plans to dismantle the Department of Education by ordering the ED to reinstate recently-terminated staff members. The ruling coincides with a new study revealing the negative impact a reduced ED workforce has had on student loan borrowers. As the future of the department hangs in the balance, so does the federal student aid program as we know it today.
-
1 month ago | 
bankrate.com | Lauren Nowacki |Pippin Wilbers
The first of three monthly reports from the U.S. Department of Education suggests that processing for both income-driven repayment plans and the Public Service Loan Forgiveness buyback program is off to a slow start. Borrowers who applied for either program should expect delays and continue making their regular payments to their current loan servicers. Nearly 200,000 of the 5.3 million federal student loan borrowers in default received a collections notice this month.
-
1 month ago | 
bankrate.com | Mark Kantrowitz |Pippin Wilbers
A proposed House bill aims to drastically reshape federal student aid by eliminating Subsidized Stafford and Grad PLUS loans. New, lower annual and aggregate loan limits will restrict federal borrowing by undergraduate, graduate and professional students. A dozen repayment plans will be replaced with just two for new borrowers. Risk-sharing will make colleges responsible for part of the cost of student loan defaults and discharges.
-
1 month ago | 
bankrate.com | Lauren Nowacki |Pippin Wilbers
Paying off student debt together with a partner may shave years off your repayment term and save you thousands of dollars. Risks of paying off debts together include resentment, financial sacrifice and potential divorce complications. Before teaming up to repay debt, ask yourself the tough questions about whether you can afford it and what stresses it could put on the relationship. In May 2019, my husband Mike and I stood across from each other in our kitchen waiting for the other to speak.
-
1 month ago | 
bankrate.com | Mark Kantrowitz |Pippin Wilbers
Involuntary collections resumed May 5, 2025 for borrowers who have defaulted on their federal student loans. College dropouts are nearly four times more likely to default than those who graduate. Among students who started Bachelor’s degree programs, college dropouts are 95 times more likely to default and represent nearly all of the defaults within this group. By comparison, borrowers whose student loan debt is in sync with their income are significantly less likely to face default.
-
1 month ago | 
bankrate.com | Mark Kantrowitz |Pippin Wilbers
The interest rates on new federal student loans are set to decrease by 0.141 percentage points for the upcoming academic year. This adjustment will yield new interest rates of 6.392 percent on undergraduate Stafford loans, 7.942 percent on graduate Stafford loans and 8.942 percent on Grad PLUS and Parent PLUS loans.
