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PSLF Weighted Average Rule Explained Oct 07, 2025

Show notes

Public Service Loan Forgiveness (PSLF) has long been a lifeline for teachers, nurses, social workers, and other public sector employees carrying student loan debt. But the rules around consolidation (the process of combining multiple federal loans into one Direct Consolidation Loan) have shifted over time, often leaving borrowers confused.

Under earlier rules, consolidating wiped out your progress entirely, resetting your PSLF payment count to zero. Then came a one-time PSLF waiver, which let borrowers lock in the highest count from any loan - a major win for those with older debts.

That waiver ended in 2023. Now, as of Sept. 1, 2024, the Department of Education has adopted the weighted average rule as the default. This new rule assigns a weighted average of your PSLF payment count to your new consolidation loan.

AFT Lawsuit Could Speed Up Student Loan Forgiveness Oct 06, 2025

Show notes

The American Federation of Teachers (AFT), representing 1.8 million members, has escalated its legal battle with the U.S. Department of Education (ED). Earlier this year, the union sued ED and Education Secretary Linda McMahon, alleging the agency unlawfully froze access to income-driven repayment (IDR) plans after a court blocked parts of the Biden-era SAVE plan.

Last month, AFT filed an amended complaint seeking to certify the case as a class action, potentially extending relief nationwide to impacted borrowers. If granted, the preliminary injunction could force ED to resume processing applications and cancel loans under longstanding repayment and loan forgiveness programs.

Meanwhile, the Department insists its pause was necessary to comply with litigation, and earlier this week began processing IBR-based student loan forgiveness again.

Top Student Loan Scams (2025): Spot & Avoid Red Flags Oct 05, 2025

Show notes

Student loan scams are surging in 2025. Policy changes, repayment restarts, and nonstop headlines give fraudsters the perfect chance to trick borrowers. Every day, fake “debt relief” companies and government impersonators are stealing money - or worse, hijacking borrower accounts.

Before you get overwhelmed, remember three things:

You never have to pay to manage federal student loans. Enrollment in student loan repayment plans or loan forgiveness programs is always free at StudentAid.gov.
Never share your FSA ID. That login is your digital signature. Handing it over is like giving someone power of attorney on your finances.
Verify everything at the source. Ignore texts, ads, or calls. Log in at StudentAid.gov or call your loan servicer using the number listed in your secure dashboard.

This guide breaks down the most common scams in 2025, the red flags to watch for, and exactly what to do if you think you’ve been targeted.

Cash App Blocked $2 Billion In Scam Payments Oct 04, 2025

Show notes

Cash App, a popular mobile financial services platform used by millions of Americans, has prevented more than $2 billion in potential scam payments since launching a real-time scam warning alert in August 2020.

In partnership with Cash App, let’s break down the most common types of banking scams, how people are falling victim, and how Cash App is helping users stay safe.

With artificial intelligence and machine learning analyzing transactions almost instantly, the app's system flags suspicious activity and provides users with immediate alerts. It's a safeguard that has helped Cash App users avoid losses that often result from peer-to-peer payment scams.

IBR Student Loan Forgiveness Resumes After Pause Oct 03, 2025

Show notes

For the first time in nearly a year, federal student loan borrowers are seeing their balances forgiven under the Income-Based Repayment plan. On Tuesday September 30, 2025, the Department of Education sent out a wave of approval notices to borrowers who had crossed the 20- or 25-year repayment threshold under IBR.

The emails, which many borrowers referred to as “golden letters,” confirmed that the borrowers had met the timeline required for loan forgiveness, and that the Department of Education would begin the process of loan forgiveness.

Are Credit Unions As Good As Banks? How Do They Compare? Oct 02, 2025

Show notes

At first glance, banks and credit unions look alike. Both offer checking and savings accounts, loans, credit cards, and certificates of deposit. But the difference lies in their structure.

Credit unions are cooperative financial institutions owned by their members — the people who use their services. Instead of aiming to generate profits for shareholders, they return earnings to members in the form of lower loan rates, reduced fees, and sometimes higher savings rates.

Membership is typically based on a “common bond.” This can mean working in a certain profession, living in a specific area, or being related to someone who is already a member. In practice, eligibility requirements are broad, and many people can qualify without difficulty.

Like banks, credit unions are safe. Deposits are insured up to $250,000 per account by the National Credit Union Administration (NCUA) (unless you happen to be in one of these states that allow credit unions NOT to be NCUA insured), just as banks are covered by the Federal Deposit Insurance Corporation (FDIC).

New Data: 5.4 Million Student Loan Borrowers Delinquent On Their Loans Oct 01, 2025

Show notes

Federal student loan borrowers are under intense financial strain as serious delinquencies hover near record levels, according to new data released by TransUnion this week.

In July 2025, 29% of federal student loan borrowers in repayment, or about 5.4 million people, were at least 90 days behind on payments. While this figure is slightly lower than the April 2025 peak of 31%, it marks the fifth consecutive month with more than five million borrowers past due.

The modest improvement suggests that some households are managing to catch up, but the overall level of delinquency remains historically high. For comparison, delinquency rates prior to the pandemic hovered around 10% to 15%, depending on income and loan type, according to The College Investor's Student Loan Statistics.

“While the percentage of federal student loan borrowers who are seriously delinquent has slightly subsided in recent months, it continues to remain decidedly elevated,” said Michele Raneri, vice president and head of U.S. research and consulting at TransUnion, in a statement.

The proportion of borrowers in serious delinquency is extremely elevated, and once they reach 270 days, they will be in default and face wage garnishments, tax offsets, and more. This comes right before tax season, when millions of Americans will be depending on their tax refunds.

Leaving The SAVE Plan: Options For Borrowers Sep 30, 2025

Show notes

For months, federal student loan borrowers enrolled in the SAVE plan have faced a decision: should I leave SAVE now, or should I wait out the forbearance longer?

The Department of Education, of course, has been very forceful in their messaging encouraging borrowers in SAVE to change repayment plans now. On the other hand, the One Big Beautiful Bill Act (OBBBA) gave a more measured timeline - possibly until 2028 to make the switch. Furthermore, the OBBBA implemented a new repayment plan called the Repayment Assistance Plan (RAP), but that doesn't go live until 2026.

Nelnet, one of the major loan servicers, has even started moving borrower's SAVE forbearance dates out until 2028.

The uncertainty has left many borrowers asking the same question: should I leave SAVE now, or wait to see what happens? For most, the choice depends on financial circumstances, forgiveness timelines, and long-term repayment goals. But it would be rare for any borrower to want to stick around until 2028. Most should have a clear path no later than mid-2026.

Government Shutdown and Student Loans Explained Sep 29, 2025

Show notes

It seems more likely that we will see a government shutdown on October 1. It's clear our government is mismanaged, but what does that mean for you and your student loans?

There have been 20 "funding gaps" and 4 full government shutdowns in the last 50 years. The last shutdown happened in December 2018 and January 2019. But the threat of a shutdown seems to loom every budget cycle.

Well, it really depends on what happens. For short government shutdowns (which might last the weekend or a few days into the week), nothing. For longer shutdowns (like we saw in 2013 or 2018), all the good stuff our government offers - like national parks, military death benefits, etc - stop, but all the "bad stuff" our government does, like collect taxes, and deal with student loans, keeps on keepin' on.

In fact, the Department of Education has a detailed government shutdown contingency plan (PDF File) because this happens often enough. This is from the last potential shutdown, but we would expect a similar plan this year.

As of right now, the last day that the government is funded through is September 30, 2025. So the earliest the government would shut down is October 1, 2025. As of today, it appears this might happen.

If you're curious about how the government shutdown will affect your investments, check out this article. However, one area that has not been discussed at great length is the impact that this shutdown will have on your student loans.

What Is The Ivy League And Why Are They Called That? Sep 28, 2025

Show notes

Ever wonder which schools are considered "Ivy League", and where the term came from?

Ivy League schools are an elite group of eight private universities based in the northeastern U.S., best characterized by their historical campuses, rigorous academic programs, and strong alumni networks.

From explaining the term “Ivy League” to discussing the current global influence of this network of schools, we’ll walk you through the history of Ivy Leagues over time, including how they’ve impacted higher education and how relevant they are in the current age of expanding access to college.

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