Last week, a very large budget bill was passed in Congress. It affects everything from SNAP, to Medicaid, Medicare, Social Security, along with immigration and tax policy.
Because there are so many things in this bill that are concerning, you may have missed the significant changes that are coming for student loan eligibility and repayment.
Most of the repayment options (ICR, IBR) for student loans will be phased out between now and 2028.
This will leave either the option of 1) a standard 10 year repayment plan or 2) one, one-size-fits-all, Repayment Assistance Plan. Here’s a summary from The Hill:
If you’re considering more graduate school, loans are changing there too. PLUS loans will be capped, but you may have access to additional funds via the unsubsidized Stafford loan program, which may be slightly expanded.
If you are in school or thinking of returning:
- Get an appointment with your school’s financial aid department to discuss it.
- Don’t drop out of school or take on private loans until you can calmly do the math. (And that might not be for a few more months!)
- Always take a night of sleep before making a big decision. Two nights if you can afford them!
If you’re done with school:
- Log on regularly to your student loan servicer’s site.
- Keep tabs on your email and snail mail.
- Prepare yourself (and the people who are financially tied to you): if your income drops, your student loan servicer does not have to help you beyond the sole repayment assistance plan. They may not allow you to defer.
There are just much bigger holes in the safety net now.
I foresee a surge in community college, trade school, and certification enrollments, as people find creative ways to reduce their loan payments or get a more cost-effective education.
Paying for a semester of community college may be cheaper than some of the loan payments out there. (Again, meet with a school’s financial aid department before attempting this “hack”.)
I also foresee some significant changes to graduate school offerings (larger cohorts, reduced services, closures, or expanded remote and evening learning to become more attractive to working students). This could take a year or more.
If you’re struggling with these changes, please, take a breath before deciding what to do. Even people in institutional leadership are still figuring out what this all means.
The last few weeks have been overwhelming with changes for our families, bodies, industries, and freedoms.
This law will take time to implement, and for all the rules to be decided on and communicated appropriately. You don’t have to have it all sorted tomorrow, but you do need to pay attention.
I’ll keep covering the situation here as well, and put links to some breakdowns in the “Presenting Issues” section below so you can keep up to date.
Whether or not this feels like a crisis to you, be extra kind and compassionate to your colleagues. Many of them are teetering on the edge of emergency with the implementation of this bill due to healthcare costs, caregiving responsibilities, and increased stress with finding resources for their highest need clients.
And if you are not in the US, send encouragement. And maybe your best local snacks? We’re going to need the fuel to keep going!
Supporter Connect and Learn - LIVE
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Presenting Issues
Learn More About the Big (FUGLY) Bill
A summary breakdown without the clickbait-y or delusional headlines:
I Read All 900 Pages of Trump’s Big Beautiful Bill So You Don’t Have To!
If you're enrolled in SAVE, you'll need to re-enroll in another program, probably sometime next year:
How Trump's big spending bill will overhaul repayment for millions of student-loan borrowers
Pell Grants are mostly being cut, but are expanding a little for workplace training programs, so...silver lining I guess???
Senate passes big changes to student loans in reconciliation bill
Joy Intervention
K-Pop Demon Hunters (rated PG, Netflix)
The movie is exactly as silly and adorable as the title suggests but it's also surprisingly touching!
The soundtrack is infectious and the vocal production is extremely satisfying.
Don't take my word for it! Here! Thank me or curse me later:
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Some of the animated fight scenes could spook your youngest family members: cartoon-y demons with intense yellow eyes and fangs explode into glitter when defeated. The clips give you a good idea of the tone.
The hype for this movie is well-deserved. Watch it, then bop around to the soundtrack when you need a mood reset.
Wishing you well, this week and every week,
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