The College Investor Audio Show

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Fidelity Study Reveals Changing Views On Student Debt Aug 20, 2025

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A new Fidelity Investments study finds that economic conditions over the past several years are influencing how high school students plan for life after graduation and what they're willing to pay for college. More than half said living through recent financial instability has changed their view of higher education, prompting many to focus on affordability, career readiness, and long-term financial security.

The survey, which polled more than 2,000 students and parents, shows a steady increase in the percentage of college-bound students prioritizing cost when choosing where or how to pursue higher education. In 2025, 47% listed cost as their most important factor, up from 40% in 2021. Among high school seniors, the figure rose to 54%.

Career outcomes weigh heavily too. 65% of students want a job in a field they care about, 61% seek salaries that support long-term goals, and another 61% aim for stable careers. These numbers have climbed since 2021, when fewer than 55% rated these as top priorities.

While most still plan on a traditional college route, interest in alternatives paths is growing. The share of students considering vocational or trade school as their primary option has tripled since 2021, from 2% to 6%, though still a clear minority.

U.S. National Debt Reaches Record $37 Trillion Aug 19, 2025

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The United States’ gross national debt has surpassed $37 trillion, marking an all-time high and raising concerns about the speed of borrowing and its economic consequences.

The Treasury Department’s daily financial report released Tuesday recorded the total at $37,004,818,000,000. This milestone arrived years sooner than expected, with the Congressional Budget Office’s (CBO) pre-pandemic estimates projecting it wouldn’t occur until after fiscal year 2030.

The rapid rise reflects massive borrowing over the past six years. Federal spending surged in response to the Covid-19 pandemic, with emergency stimulus measures, unemployment expansions, and business aid programs passed under both the Trump and Biden administrations. The pace has remained brisk as new tax cuts and spending packages continue to push the debt higher.

Final PSLF Eligibility Restrictions Move Forward For Comment Aug 18, 2025

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A new rule from the Department of Education could reshape the Public Service Loan Forgiveness program (PSLF) by redefining which employers qualify.

The new rule, published today in the Federal Register (PDF File), would allow the Secretary of Education to block PSLF eligibility for organizations determined to have a “substantial illegal purpose.” The definition covers a wide range of activities, from providing medical care to transgender minors to allegedly violating immigration laws or engaging in (or even prohibiting to stop) certain protests.

The rule, slated to take effect July 1, 2026, would not strip existing PSLF participants of past qualifying payments. However, future payments would stop counting if an employer is disqualified under the new criteria.

27,000 Borrowers Stuck In Student Loan Complaint Backlog Aug 16, 2025

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The Department of Education’s ombudsman office, which handles disputes from student loan borrowers, is facing a backlog exceeding 27,000 cases, according to a recent data sent to Senator Elizabeth Warren (PDF File). The surge comes after the office lost nearly two-thirds of its staff in sweeping layoffs authorized by the Trump administration earlier this year.

According to recent court documents (PDF File), the office had 63 employees at the start of the year but now has 25.

As a result, number of unresolved complaints has risen sharply from about 16,000 in March to its current level of over 27,000, and the office continues to receive hundreds of new cases each week.

In May, the most recent month with available figures, the office closed just over 1,100 complaints. At that rate, the backlog could continue to grow for months. Senator Warren has pressed Education Secretary Linda McMahon for details on how the department will address the bottleneck, along with other operational issues stemming from the layoffs.

529 Plans Grow 8% in Q2 2025 Before Big Rule Changes Aug 15, 2025

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In the three months ending June 30, 2025, 529 college savings and prepaid plans saw one of their strongest periods of growth in years. The latest data from ISS Market Intelligence shows 17.3 million accounts holding $568 billion in assets, up from 16.8 million accounts and $508 billion a year earlier. That’s a 7.9% increase in accounts and an 11.8% jump in total assets over the same period.

What makes this surge noteworthy is that it occurred before the full impact of the One Big Beautiful Bill Act (OBBBA). The new law, signed in July 2025, significantly broadens what families can pay for with 529 funds. While historically focused on higher education, 529 plans will soon be able to cover certain workforce training programs, licensing exam fees, and professional credentialing costs. The law also increased what's allowed for elementary education as well.

This expansion has the potential to accelerate account openings and contributions in the second half of the year and beyond, particularly among families who see 529s as a tax-advantaged way to invest in both traditional education and career-focused training.

Student Loan Complaint Backlog Grows As SAVE Borrowers Stay In Limbo Aug 14, 2025

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The week began with anticipation for the August 4 court status report in the lawsuit over the SAVE repayment plan. Borrowers hoping for clarity instead saw a short update from the parties indicating that discussions continue, with no agreed-upon timeline for next steps.

The SAVE plan, designed to lower monthly payments for millions of federal student loan borrowers, has been blocked by court order since 2024. Under the injunction, the Department of Education cannot resume payments under the plan, leaving roughly 7 to 8 million borrowers in administrative forbearance. Interest on these loans resumed August 1, but no payments are due.

Congress officially ended SAVE as part of the One Big Beautiful Bill Act, signed into law in July, which also created a new Repayment Assistance Plan (RAP) scheduled to begin July 1, 2026. Borrowers currently in SAVE are expected to move to an amended version of Income-Based Repayment (IBR) sometime between now and June 30, 2028, but the exact timing is still unknown.

The next court update is scheduled for October 3. Until then, borrowers remain in a holding pattern, relying on estimated timelines rather than official announcements.

Which AI Tool Gives The Best Student Loan Recommendations? Aug 13, 2025

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When families weigh their options for paying for college, the question “What’s the best student loan?” seems straightforward. But as we learned after asking five leading AI models (ChatGPT, Grok, Perplexity, Copilot, and Google Gemini) the answers can be incomplete, sometimes unclear, and occasionally misleading.

Each tool offered a broad framework: start with federal loans, then consider private loans if needed. Yet critical details were often missing.

In some cases, explanations failed to note that Direct Subsidized Loans require demonstrated financial need. None clearly spelled out federal borrowing limits, an omission that could leave families unprepared if federal aid runs short. Or even specific scenarios or borrowing order (such as borrow the student's Direct Loan first, then supplement with Private or Parent PLUS Loans).

Last year, we discovered that Google's AI was getting financial answers incorrect 43% of the time.

When it comes to student loan recommendations, the results were better, but there were still key misses in an areas where policy change, interest rates vary, and borrower protections shift frequently.

What Is Demonstrated Interest And How Does It Impact College Admisssions? Aug 12, 2025

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Demonstrated interest refers to the ways a student indicates interest in a specific school. This includes visiting campuses, reaching out to admissions officers, participating in prospective student events, and even interacting with the school’s online resources.

Let’s face it: the college admissions process is notoriously competitive. Over the past few decades, getting into college has become increasingly difficult, with the average acceptance rate hovering just under 70% across the US.

Gone are the days when admissions officers only looked at a prospective student’s grades and test scores. Now, students face a whole list of factors that schools secretly look for.

Demonstrated interest is on that list.

How To Pay For College With A 529 Plan Aug 10, 2025

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Taking money out of a 529 plan is more complicated than putting money into a 529 plan.

If you do it incorrectly, you may owe taxes and a 10% tax penalty, plus recapture of state income tax breaks attributable to the distribution.

If you're getting reading to take 529 plan distributions to pay for college (or K-12 tuition, student loans, or even a Roth IRA rollover), here's what you need to know so you don't end up receiving a tax penalty.

How Much Does It Cost To Rush (From Real Bama Rush Numbers) Aug 09, 2025

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As someone who spent her freshman year at the University of Alabama (UA), I know firsthand how costly simply attending two semesters of classes can be there. Add to that the experience of Greek life, and your social circle isn’t the only thing that suddenly expands.

Sorority hashtags and content exploded on social media, as universities eased Covid-19 restrictions and let students resume fall recruitment activities. This was especially true for UA, which is often used as the benchmark for recruitment across the country due to its size and funding.

Earlier this year, Max (formerly HBO Max) released a documentary that examines UA rush through a magnifying glass. Whether you’ve seen the documentary, enthusiastically followed the #BamaRush trend, or you’re simply curious about the price that’s paid for Greek life, this article is a good starting point for learning about the true costs of sorority recruitment.

I’ll break down the rush process, point out its main financial factors, and weigh the pros and cons of taking on Greek life.

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