Read this if you have Federal Student Loans in May 2025 (and have no idea what is going on)
You may have seen some scary headlines about news coming out of the Department of Education. If you still have Federal student loan balances, it can be super confusing to know what to do or where to go to get factual, up-to-date information about what the heck is going on.
“What the heck’n heck is going on?!?”
Not that it is much consolation, but at least you aren’t alone. In the state of Oregon alone, there are 543,000 student loan borrowers with an average of $37,017 in debt outstanding.
And for 8.3% of those borrowers who are currently delinquent (not current on their monthly payments as of Q3 2023), May 5th was the first day in 5 years that the Federal government began collections and negative credit reporting after a hiatus launched during the pandemic.
If you currently have or know someone with student loans and want to know what to do, unfortunately I don’t have any answer for you. Not even Congress or the Senate really has it all figured out yet either as they are still hashing out a new bill to change the rules around income-based repayment plans & forgiveness loan options for federal student loan borrowers.
In the meantime, other than taking no action, I recommend the following preventative measures:
Educate yourself with news from reputable sources
Log-in to your loan servicer and make sure they have your up-to-date contact information so you won’t miss any notifications about your loan(s). (Here is a full list of current Federal loan servicers.)
Prepare your budget for possibly higher student loan payment amounts and longer repayment periods.
How do I educate myself on these issues when everything is changing so fast, and who do I trust?
There are independent groups out there that are not affiliated with the Federal Government who are doing the very difficult work of staying informed on the many, many announcements from the Department of Student Financial Aid.
Here’s who to follow on Social Media:
Student Loan Planner (IG: @studentloanplanner, website: www.studentloanplanner.com)
Student Loan Planner® was founded in October 2016 by Travis Hornsby after he helped his wife and her friends figure out their six figure student loans. Travis was working as a bond trader at the time and utilized his skills with Excel to build models for how to save money paying back student debt.
Today, Student Loan Planner has consulted on over $4.5 billion in student debt, and (according to their website) have found $1.4 billion in projected student loan savings for the professionals we’ve worked with. They provide consulting on your student loans for a fee, access to lenders to help with refinancing but also a ton of free resources to help you learn about your loans and options.
The College Investor (IG: @thecollegeinvestor, website: https://thecollegeinvestor.com/)
Their mission is “to help you escape student loan debt so that you can start building real wealth”. The College Planner has been providing news and commentary, expert guides, reviews, tutorials, and more for our readers since September 2009. What started out as a personal finance blog by founder Robert Farrington has evolved into a financial media brand reaching millions of readers per month - across their website, podcast, and video channels.
Eliza Haverstock, Nerdwallet Student Loan expert
Eliza’s articles often show up on NerdWallet’s Student Loan homepage but you can also find her on LinkedIn
Student Loan Channel on Reddit, https://www.reddit.com/r/StudentLoans/
Watch for the most up-voted comment on posts to find resources and advice from others who may be in your similar situation.
What if I need way more help than just education?
Check out the following non-profits who help student loan borrowers with free or affordable advice.
The Institute of Student Loan Advisors (TISLA): Provides free, neutral advice and dispute resolution assistance for all student loan borrowers.
National Foundation for Credit Counseling (NFCC): Offers comprehensive financial reviews and counseling, which can include student loan advice.
American Consumer Credit Counseling (ACCC): Offers advice on repayment plans, paperwork assistance, and budget counseling.
National Consumer Law Center (NCLC): Offers comprehensive information on options for student loan borrowers.
Don’t be afraid to reach out for help if you really need it.
Does our state have someone who can help me with my student loans?
Several states across the country have a Student Loan Ombudsperson or Student Loan Advocates. These state officials are dedicated resources committed to providing information that is critical to many student loan borrowers. You can reach out to your state ombudsperson or student loan advocate as another resource to help address any student loan-related concerns.
Oregon
Lane Thompson
Student Loan Ombudsperson
Division of Financial Regulation, Department of Consumer and Business Services
888-877-4894 (toll-free)
dfr.bankingproducthelp@dcbs.oregon.gov
https://dfr.oregon.gov/help/student-loan-help/Pages/index.aspx
Full Disclosure: Nothing on this website should ever be considered to be advice, research or an invitation to buy or sell any securities. Please see the Disclaimer page for a full disclaimer.
Stacy Dervin, CFA, CFP® provides fee-only financial planning and investment management services in Eugene, Oregon. Tailored Financial Planning (TFP) serves clients as a fiduciary and never earns a commission of any kind. As a financial advisor, Stacy is on a mission to help Gen X and Gen Y be truly proactive about their financial futures.
