By Marlene Seeklander Student loan borrowers will see slightly lower interest rates starting July 1 for Direct Loans borrowed on or after July 1, 2026. The new interest rates were announced by the Department of Education in a June 4 Electronic Announcement. The interest rate is a fixed rate for the life of the loan. For Direct […]
Interest rates on federal student loans to increase Read More »
By Marlene Seeklander Schools that have not yet closed out their 2024-25 Direct Loan Program year will need to make note of the upcoming closeout deadline. A May 20 Electronic Announcement reminds schools that Friday, July 31, 2026, is the closeout deadline and last processing day before the end of the program year. This means that
Closeout deadline nearing for 2024-25 Direct Loan Program year Read More »
By Marlene Seeklander There’s good news for Direct Loan borrowers and students receiving TEACH Grant awards in the 2026-27 academic year as the Direct Loan fees and TEACH award amounts once again remain unchanged. A recent Electronic Announcement outlined the sequester-required increases to Direct Loan fees and sequester-required reductions in TEACH Grant award amounts. These apply
Direct Loan fees and TEACH Grant award amounts set for 2026-27 Read More »
By Marlene Seeklander Along with all of the tasks at the academic year end and the awarding of aid for the next year, financial aid professionals are also in the middle of implementing new federal student loan rules. On Friday, May 1, the Department of Education published the final regulations in the Federal Register for
Colleges implementing new rules for federal student loan programs Read More »
By Marlene Seeklander Financial aid professionals may have questions about the legacy loan limit provisions going into effect this summer following the passage last year of the federal budget reconciliation law. Federal Student Aid offered a live webinar on April 17 that addressed the provisions for those borrowers who had loans disbursed prior to July 1,
Webinar recording on legacy loan limit provisions now available Read More »
By Marlene Seeklander Schools can begin reviewing their FY 2023 draft cohort default rate information and prepare to submit any necessary appeals. The Department of Education announced the distribution of the FY 2023 draft cohort default rate (CDR) packages on March 23 to all eligible domestic and foreign schools. The information, sent to the SAIG mailbox
FY 2023 Draft Cohort Default Rates available Read More »
By Marlene Seeklander Schools that have not yet closed out their 2024-25 Direct Loan Program year need to make note of the upcoming closeout deadline. A March 18 Electronic Announcement reminds schools that Friday, July 31, 2026, is the closeout deadline and last processing day before the end of the program year. This means that all
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By Catherine Mueller Nearly 8 million student loan borrowers with $180 billion federal student loans are in default, according to the latest data from the Department of Education. The number of defaulted borrowers mirrors the count from December 2019, prior to the payment pause, when 7.7 million recipients with approximately $168 billion in federal student loans
Number of student loan borrowers in default matching pre-pandemic levels Read More »
By Marlene Seeklander More than 1800 higher education institutions across the country are at risk of losing access to federal student aid due to high rates of nonpayment by student loan borrowers. In a February 18 Electronic Announcement, the Department of Education released updated data indicating over 1800 institutions have nonpayment rates at or exceeding 25
Nonpayment rates among student loan borrowers put colleges and universities at risk Read More »
By Marlene Seeklander The Secretary of Education is seeking comments on proposed federal student loan regulatory changes, which stem from legislative action last summer. In a Federal Register Notice published on January 30, 2026, the Secretary proposes to amend some of the regulations governing the Federal student loan programs in order to implement changes that were
Comments sought on proposed changes to federal student loan program regulations Read More »
