Student Loan News for Feb 2025

Student Loan News for Feb 2025

February 2025 Newsletter

While I would love to start this newsletter off with a fun Valentine’s Day pun, “roses are red”, etc., there are monumental shifts taking place (or at least being proposed) when it comes to student loan policy. I know many of you are anxious about what you’re seeing in the news. So, let’s dive right in.

Will Trump Dismantle the Department of Education?

We thought our second story would be the biggest news this month… then President Trump said, “Hold my beer.”

If you haven’t heard, Trump is expected to sign an executive order this month to “dismantle” the Department of Education (DOE). While reactions are split on the Trump/DOGE initiatives (some are cheering, others are panicking), the practical effects are still unclear. Right now, the best guess is that this would be more of a reorganization, shifting some DOE responsibilities – potentially including student loans – to the Treasury Department. But we also know DOGE is looking to make cuts wherever it can.

For those wondering whether this means student loans will magically disappear (spoiler alert: they won’t) or if repayment obligations will change overnight, we don’t see that happening. There are also concerns about disruptions to DOE funding for K-12 programs, special education resources, and other important services. We are not discounting those concerns at all, and we’ll be watching this closely and keeping you informed, especially about how it affects borrowers in repayment. Unfortunately, there is nothing solid to report on this until that executive order is signed and we get to read it for ourselves.

We actually think this next story will have the greater impact for most of our readers.

GOP Budget Plans & Student Loans

What was supposed to be our top story this month was the GOP’s leaked budget reconciliation proposal. Among other things, it includes some major student loan changes, echoing last year’s Student Loan Reduction Act.

Yes, while I previously speculated that initiative was basically dead, it is not. As I often tell my wife, I’m not perfect – I do make one or two mistakes a year…tops (insert hysterical laughter). None-the-less, we are all over this proposal and have provided a full breakdown of what’s on the table. Check out our dedicated article on the proposed changes. We will update this article regularly as this process plays out.

PSLF Buyback Issues

If that heading made your heart skip a beat, take a deep breath. This isn’t a PSLF Buyback failure, just a glitch.

The ongoing SAVE forbearance, PSLF certification form, and the new PSLF reconsideration (buyback) form aren’t playing nicely together. But don’t worry: there’s a way to work around it (or avoid the problem altogether). We’ve got you covered with an updated PSLF Buyback article breaking it all down.

Now on to the inevitable V-day puns…

Taxes & Student Loans: A Romance That Never Ends

Are you feeling the love this season? Some of you will soon be celebrating a tax refund (lucky), while others will be sending payments to the IRS (not so lucky).

No matter which category you fall into, your tax strategy can play a huge role in your student loan repayment plan. We’ve been helping borrowers navigate this for over a decade, and we’ve just updated our 2025 Tax Tips for Student Loan Borrowers. Make sure to check It out before filing your 2024 tax returns!

Upcoming Webinars: Loan Repayment Tips for New Grads

Graduation season is right around the corner! If you (or someone you know) are finishing a graduate health program this year, don’t miss our free loan repayment webinars in March and April.

Already in the field? No problem. Our sessions cover the latest programs and changes, so you’ll still find plenty of helpful insights. Can’t find your degree listed? Just pick the session that best matches your field. These sessions may not give you the same fulfillment as cozying up with your special someone, but they will provide similar relief to the time(s) you broke it off with that crazy ex.

Final Thoughts

I just want to wrap this up by sympathizing with all of you who are anxious about these proposed changes. Whether you agree with them or not, the sheer volume of what could be coming this year will likely impact borrowers, financial aid staff, DOE employees, and other industry professionals (like us), in major ways. Student loans have become a political pawn leveraged by both sides, so it has become quite difficult to cover these stories in detail without getting into politics. We are doing our best to stay objective, report what we see, and give our honest opinions as to how all of this impacts you as borrowers. That is our commitment.