Student Loan Changes Hit Tomorrow – The Tuesday AM Quickie 6/30/26
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6/30: Sam and Emma are in the studio and will do a good old-fashioned News Day Tuesday.
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Today you’ll read about some good news from the high court priests, the extreme heat baking the world, and how cops in Oklahoma responded to a farmer speaking mere seconds over his time limit at a hearing on data centers.
THE BIG NEWS
Student Loan Changes Hit Tomorrow, Forcing Millions Into Repayment Just as Interest Rates Rise
The Trump regime’s student loan overhaul will start this week at the same time that many of us are struggling to make ends meet in the decreasingly affordable and decreasingly united States. Starting tomorrow, Trump’s mega spending package, the “One Big Beautiful Bill” law, will kill certain loan repayment options and impose more restrictions on how much students can borrow, NBC News and NPR reported. It will end the Biden-era Saving on a Valuable Education plan, or SAVE, which was considered the most borrower-friendly repayment program. The overhaul will force millions of people into repayment at the same time that interest rates are increasing.
Trump's overhaul will move the federal student aid program from the Education Department to the Treasury Department. That's because Trump wants the entire student loan enterprise to focus on extracting money from Americans; The Treasury department has more ways to collect student debt because it already collects defaulted debt for federal and state agencies.
Per NBC, which included a helpful explainer of all the changes and is worth a read:
In the first quarter of 2026, almost 43 million student borrowers carried nearly $1.7 trillion in loans, according to Federal Student Aid statistics. In that same period, an additional 2.6 million student loan borrowers fell into default for nonpayment, a Federal Reserve Bank of New York report found. The report said the average defaulted borrower was nearly 40 years old, from a Southern state and did not have a history of nonpayment before the pandemic.