Student Debt
Current trend: escalating · Category: Money · Last updated: August 13, 2026
Current situation
Repayments have resumed while policymakers continue adjusting repayment programs and forgiveness eligibility. There has been a lot of confusion among borrowers, and a recent glitch that sent incorrect repayment amounts to 6,000 borrowers isn't helping matters. There may be some relief for borrowers who were given incorrect information, and new repayment plans may help others (with caveats).
Why we're watching
Student debt affects home buying, career decisions, family formation, and long-term wealth. The Trump administration has made multiple changes from the Biden years, and there is much confusion about who owes what, when, and how much.
What to watch for next
Changes to repayment rules, Forgiveness programs, Delinquency rates
Signal history
- 2026-08-13 — So Much Has Changed With Federal Student Loans Widespread changes to the federal student loan program went into effect in July, intended to reduce overall student debt. The actual impacts of the changes aren't yet clear. **Bottom line, the new rules are causing confusion and there are ways for students (and parents) to get tripped up, so special care is needed when applying for and repaying loans. The result may be more delinquencies, and lower college costs even while enrollment shrinks.**
- 2026-07-30 — Courts have approved $23 billion in debt relief A federal appeals court has cleared the way for about $23 billion in student loan relief for more than 500,000 borrowers who said they were misled or defrauded by their colleges. Borrowers who qualify could have their federal student loans canceled, receive refunds for some payments they already made and have their credit records updated.
- 2026-07-30 — Borrowers Have 63 Days To Enroll In New Repayment Benefit The new incentive program allows borrowers to reduce their interest rates on their federal student loans by 1% if they enroll in auto pay by September 30, 2026. There are some restrictions and risks (higher payments for low earnings, auto pay fails, longer repayment).
- 2026-07-29 — Thousands of Borrowers Told to Pay Incorrect Amount Thousands of federal student loan borrowers are being told to reapply for income-driven repayment (IDR) plans after a calculation error resulted in incorrect monthly payment amounts being issued. Borrowers are already navigating the phaseout of the SAVE plan, the launch of new repayment options, and broader changes to income-driven repayment systems.
- 2026-07-25 — 3 big new changes to federal student loans As of the beginning of this month, loan servicers began issuing notices to current borrowers on the SAVE plan, letting them know they had 90 days to enroll in a different repayment plan or be automatically enrolled in another plan.
- 2026-07-22 — Student loan default rates surge Student loan defaults are up to a record high, with 9.5 million borrowers in default, meaning they are more than 270 days behind on loan payments. This could have a chilling effect on consumer spending.
- 2026-07-21 — Student-loan borrowers are taking on debt they can't pay off. Sens. Elizabeth Warren and Dick Durbin are reintroducing the Accreditation Reform and Enhanced Accountability Act. The bill would require the Department of Education to establish guidelines for evaluating colleges, including student-loan repayment outcomes and how much debt students take out postgrad compared to their earnings.
- 2026-07-18 — Trump's New Student Loan Law Is Quietly Blocking Public Service Workers From Loan Forgiveness Federal student loan borrowers pursuing Public Service Loan Forgiveness, or PSLF, are facing new eligibility rules. For anyone borrowing a new loan on or after July 1, 2026, this is especially important.
- 2026-07-17 — Rising National Debt Seen as Cooling Job Prospects for Young Americans The nation’s rising debt burden is slowing private investment, weakening long-term job growth and making it increasingly difficult for young Americans to enter the workforce.
- 2026-07-17 — Trump officials pitch new solution to student debt problem The administration sees a need to create new ways for people to borrow for their education after last year’s Republican domestic policy law set new limits on how much the federal government can loan.
- 2026-07-16 — Income-driven repayment litigation continues delaying forgiveness programs. Many borrowers have counted on forgiveness to pay rent, credit cards, etc.
- 2026-07-01 — Interest rate reduction for borrowers enrolled in auto pay will go from 0.25% to 1% If enrolled, this should reduce the burden of repayment