(A Ton of) STUDENT LOAN UPDATES | Lost PSLF Credits, RAP Woes & More

EPISODE RESOURCESUpdated Payment Guidance from Department of EdFederal Student Loan Updates: MOHELA Default Letters, IDR Recertification Tips, New On‑Time Rules, PSLF Tracker Issues, Borrowing Limits Lawsuit, and PSLF Buyback ProgressIn this episode, we share major federal student loan updates, focusing on errors and rule changes affecting forgiveness and repayment. MOHELA mistakenly sent default-risk notices to thousands of borrowers who were current. With income recertification restarting after the 2020 pause, we share alternate forms of documentation that might be preferable to a tax return. Under the One Big Beautiful Bill Act, the grace period for on-time payments is removed for IDR and PSLF credit, creating concerns about weekends and autopay timing; Repayment Assistance Plan borrowers also risk losing interest subsidy and $50 principal reduction if late, and guidance suggests extra payments may disrupt subsidies. The PSLF tracker temporarily disappeared and some counts were reduced, potentially correcting prior adjustment-era credits. A lawsuit has temporarily paused lower graduate borrowing limits, and PSLF Buyback processing appears to be improving after streamlining to a button-based application.00:00 Student Loan News Intro00:44 Back in Studio Updates02:15 MOHELA Default Letter Error03:37 Recertify Income Smartly07:45 Grace Period Removed Shock10:43 RAP Subsidy and Extra Pay13:58 PSLF Tracker Disappears18:11 Borrowing Limits Lawsuit20:22 PSLF Buyback Speeds Up21:57 Wrap Up and Next StepsSupport the show