Reminder! Workshop On Thursday
Final call for my workshop this Thursday, March 6th, from 5:30 to 7:00 at Innovate@BU! There will be tons to learn from interactive personal finance activities to tutorials on how to automate your personal finance management process. There will also be pizza ;)
I’d love to see you there! You can register here!
Live: Federal Student Aid in the Trump Era
The Trump administration is making a lot of changes, and federal student loans may be impacted. Proposed departmental and policy reforms could reduce federal aid and make it harder to qualify for loan forgiveness.
So for those relying on student loans, the way you afford college may change.
So What?
If you rely on Pell Grants, federal work-study, or income-driven repayment (IDR) plans, these programs could be scaled back. Loan forgiveness options, like Public Service Loan Forgiveness (PSLF), are also on the chopping block.
To be clear, nothing is final yet. But if history tells us anything, it’s that student loan borrowers should stay vigilant.
Learn: How to Tackle Student Loans
If you’ve got student loans, planning ahead on repayment can really help you out. Here's a few ways to be more prepared for uncertainty:
Repayment Plan Options – Federal loans come with multiple repayment plans. The best repayment plan for you is what is most financially feasible.
There are fixed repayment plans that have set, predictable payments over a given time period (often 10 years). These plans can get you out of debt faster but often have higher payments.
Income-Driven Repayment (IDR) Plans are where you pay a percent of your income (often 10%) towards the loan. Income-driven plans adjust based on your salary but can lead to higher interest over time (since you may be paying back the loan slower).
Subsidized vs. Unsubsidized - Understand the difference between subsidized and unsubsidized loans—subsidized loans don’t accrue interest while you’re in school, whereas unsubsidized loans start accruing interest immediately. Knowing which type you have can help you predict how much you'll owe, helping you plan smarter repayment strategies.
Make Extra Payments When Possible – Even an extra $20 a month toward your principal can shave months or even years off your loan and save you hundreds in interest. I'm not asking you to drop your subscription to your latest Power Ranger Romance series (what, just me?). If this payment increase puts you under financial or emotional strain then don't. But if you can manage, it will save you a lot of money on the long term.
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Can you dance like that? Didn’t think so.
The current student loan situation holds a lot of uncertainty, so anticipating and controlling what you can will serve you the most in the next few years.
Launch!
If you have student loans, review your repayment plan ASAP and see if you need to/can switch to a more affordable option.
Not sure? You can log into studentaid.gov and check your options.
And if you’re still in school or applying for aid, keep an eye out for these policy changes. They could really affect you.
Don’t wait for bad news to hit—take control now. Your future self will thank you ;)
—Ben Brosnahan
