What’s Changing with Student Loans and What You Should Do Now
- John Hine
- Nov 24
- 2 min read
Big recent moves in the federal student loan world mean it’s more important than ever to stay informed and proactive. Here are three headline-changes and how you should respond to each.
The One Big Beautiful Bill Act (OBBBA) is heading into major rule-making. The U.S. Department of Education has concluded a negotiated rule-making session tied to the law, which aims to simplify repayment plans and reshape graduate loan limits.
The Department of Education has issued a final rule tightening eligibility for the Public Service Loan Forgiveness (PSLF) program, specifying what qualifies as a “public service employer.”
Federal loan collections have officially resumed for defaulted borrowers meaning those who’ve been behind now face wage-garnishment, tax refund offsets, and other serious consequences.
What You Should Do
1. Review Your Loan Status
Whether your loans are current or past due, now is a critical time:
Check if you’re in good standing or in default/delinquent.
Note your servicer and payment schedule.
If you qualify for PSLF or other forgiveness, verify you still meet the criteria (especially since eligibility is being tightened).
2. Explore Repayment Options Now
With OBBBA changes coming and PSLF rules shifting, you may have more (or different) options than you realize:
If your monthly payment seems too high relative to your income, look into income-driven repayment plans.
If you're heading into or in default, consider consolidation or rehabilitation before collections accelerate.
If you work in public service, verify your employer still qualifies under the new PSLF definition so your work counts.
3. Act Before You Get Hit by Collections
With collections restarting:
If you’re behind, reach out now to avoid wage garnishment or tax refund interception.
Don’t assume forgiveness is automatic, many programs are under legal review or changing.
Keep documentation of payments and communications from your servicer; errors in record-keeping can delay your path to relief.
If you feel uncertain about your loan status, repayment options, or ability to stay on track, let the expert team at Smart Loan Aid support you. They’ll walk you through where you stand, what your choices are, and the next best step tailored to your situation.
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