Congress Unveils Plan To Change Student Loan Repayment Plans

Income-Driven Repayment (IDR) plans provide affordable monthly student loan payments by basing the payments on a portion of the borrower’s discretionary income, as opposed to the amount they owe. Generally, IDR plans will yield lower student loan payments when the borrower’s total student loan debt exceeds their annual income. However, there are ways to decrease the student loan payments even further. Monthly student loan payments under IDR plans are based on a percentage of discretionary income. There are legitimate ways of reducing discretionary income and thereby reducing the student loan payment. Discretionary income is calculated by subtracting a multiple of the poverty line from Adjusted Gross Income (AGI). Discretionary income may be reduced by reducing AGI or by increasing the applicable poverty line.Of course, avoid fraudulent tactics like underreporting income or falsely inflating family size, as these carry severe penalties.

Many families assume that once a student accepts admission to a college, the financial aid offer is final. In most cases, that’s true. Schools often budget tightly and expect students to commit based on the information already provided. But there are exceptions.Appealing a financial aid award after committing to a school is uncommon, but not impossible. In some cases, families report success in securing more need-based or merit-based aid even after housing contracts are signed and roommates are assigned. Whether that happens depends on the institution’s policies, remaining funds, and the circumstances behind the request.

The latest reconciliation bill set for review in the House Committee on Education and the Workforce proposes some of the most extensive changes to higher education funding and student loans in decades. This is the papered proposal, it's NOT law yet.If enacted, the legislation would limit federal borrowing, end Parent PLUS loans, change repayment options, and reshape Pell Grant eligibility. The changes would primarily affect new borrowers taking out loans after July 1, 2026, but some changes take effect as so as the bill is signed into law.It's important to remember that this is the first work-up of proposals that are actually in print. Not all of these may make the final bill, and even then, they may change as well. That being said, many of these proposals mimic what was already proposed under the College Cost Reduction Act, and many are popular topics for Republicans. Let's break down some of the major proposals (though there are many others as well - the bill is 100+ pages long).

Student loan debt is not fun to have. While it may have been necessary to pay for school, now that you’re graduated, it’s time to think about ways to pay off your student loans faster.If you’re looking at your repayment plan options - even the shortest term is usually around 10 years. That can seem like forever!At the same time, looking at these long time frames could also motivate you to see what you can do to get out of student loan debt fast. Luckily, there are a lot of ways to get out of student loan debt fast - it just takes a solid repayment strategy and knowing your options.We’ve put together a list of ten of the best ways to help you formulate that plan. Remember - this is about paying your student loans faster. Getting aggressive with your student loan debt. These ideas might not work for everyone, or at least not today.It’s always important to assess your own situation, and then layer in these tactics as you’re able to.

As families juggle decisions about housing, orientation dates, and class schedules, one area that often gets overlooked is life skills. The transition from high school to college is one of the biggest changes a teenager will face. And while some schools may offer a session study habits, far fewer address what it takes to function day to day.The cost of not being prepared can be high. Students who don’t learn how to manage stress or money early may be more likely to drop out or take longer to finish their degree. Parents often assume their kids already know these skills or will figure them out along the way. But being proactive helps students feel more confident from day one.

With the stock market fluctuating and new tariffs raising concerns about family finances, some families are re-thinking the college decision (at least in the short term). While it might not be off the table, taking a gap year or deferring enrollment is an option for some. But what happens to financial aid if my child takes a gap year?While taking time off before starting college has its benefits, it can also come with consequences. Financial aid is not automatically frozen or held for a year. Depending on the type of aid and the policies of the college, a gap year can mean recalculations, new paperwork, and in some cases, lost money.Here’s what students and families need to understand about need-based aid, merit scholarships, and what happens if plans change.

For high school seniors navigating college admissions, few emails inspire more confusion than a notice of being "deferred" or "waitlisted." While neither outcome is final, each comes with distinct meaning, timeline, and next steps.Being deferred means your early application wasn’t denied, but it wasn’t accepted either. Instead, the admissions committee will evaluate your application again during the regular decision round, alongside new applicants. This delay gives the college time to compare you to the broader pool and assess updated academic records or accomplishments.Waitlisting, by contrast, happens after regular decisions are made. It means you met the qualifications for admission, but there wasn’t enough space to offer you a spot. You may be admitted later if enough admitted students decline their offers.

Have you heard the phrase "Sell In May And Go Away"?There are many weird stock market indicators that pundits try to use to explain what you should be doing in the stock market at any given time.There seems to be many ideas that people will suggest to determine your investing strategy including the January-effect, the presidential cycle, which team wins the Super Bowl, and how well stocks will fare.Over time, the of the stock market are hard to beat, and timing the market is not something that many people can do on a reliable basis.Based on this month, you may have encountered the "Sell in May and Go Away" philosophy. While it may sound kitschy or superstitious, does this theory actually have any legs? 

Today's episode is an interview Robert had with Jack Wang from the Smart College Buyer podcast. He talks about how to think about college costs, making smart student loan decisions, and how to have open and honest conversations with your family about money and education.We hope you enjoy the episode. If you want to learn more about the Smart College Buyer podcast, check it out on your favorite podcast platform.

President Trump generally does not support student loan forgiveness and would likely seek an end to some student loan forgiveness programs. But can the President claw back student loan forgiveness that has already been granted?It's sparked a lot of concern in recent weeks, especially as President Biden has continued to propose new student loan forgiveness plans and already has set a record during his presidency for the most student loan forgiven.As of November 2024, President Biden has provided $175 billion in student loan forgiveness for 4.6 million borrowers, more than any previous president. For borrowers that have already received forgiveness, the question looms:Could Trump claw back student loan forgiveness that has already been granted? The answer is generally no.Let's break it down and learn why past loan forgiveness is likely protected, but future loan forgiveness could be in jeopardy.