Federal Student Aid
Coverage of Federal Student Aid in the Nexus archive.
- 'A bunch of red tape': Student-loan borrowers can't get clear answers from the companies that manage their debt
Student-loan borrowers report difficulties obtaining clear information from loan servicers, including long hold times, disconnected calls, and conflicting payment details. The Education Department claims it monitors servicer performance, but borrowers like Jessica Salmi, Jason Marques, and Robin Binkley describe struggles to navigate repayment plans and payment amounts.
- Clinton College under scrutiny for financial struggles and late payroll
Clinton College faces scrutiny over financial struggles and late payroll, prompting external monitoring by its accrediting agency TRACS and federal oversight bodies. A former employee reported receiving late payments multiple times before resigning, highlighting concerns about the institution's financial practices.
- Washington gutted the office that manages your student loans. Next week, it has to reinvent them
Federal Student Aid (FSA), the office managing U.S. student loans, has been significantly impacted by DOGE cuts, leading to operational issues and challenges for borrowers. Upcoming changes in July 2025 will impose lifetime loan caps and limit repayment options, while a report reveals 40% staff attrition at FSA, with nearly a quarter of suboffices having no remaining employees.
- Private Lenders Expected to Fill Loan Limit Gap—for Some
Republicans who supported loan limits and reduced federal student aid are relying on private lenders to cover the gap. Critics argue private lenders will prioritize students with strong credit histories, potentially limiting access for low-income individuals.
- Student-loan borrowers were mistakenly told their monthly payments were $50. Some of their bills are much higher.
Student-loan borrowers were incorrectly informed their monthly payments would be $50, but some now face significantly higher bills. The Education Department confirmed the error, which affected borrowers who shared tax information with Federal Student Aid, and stated the issue has been resolved with corrected payments expected soon.
- How to Get a Student Loan
The article outlines the process of obtaining federal and private student loans, emphasizing the importance of the FAFSA form to determine financial aid eligibility. It highlights key loan types, including Direct subsidized and unsubsidized loans, and explains how interest accrual differs between them.
- Which college majors offer the best long-term return on investment?
College graduates outearn those without a degree within 15 years, despite tuition costs. A study found that certain college majors offer a better long-term return on investment. College grads can expect to earn more than non-grads over their lifetime.