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The White House has unveiled a more detailed budget request for fiscal year (FY) 2026, with reduced funding levels for the Department of Education (ED) that the administration says are meant to reflect a responsible “winding down” of the federal agency. 

NASFAA will submit formal comments to the Department of Education (ED) regarding revising the Income-Driven Repayment (IDR) Plan Request form, necessitated by a recent court injunction impacting the SAVE plan. While strongly supporting the principle of IDR plans as a crucial safety net for borrowers, NASFAA expressed significant concerns about the month-long delay in releasing the revised form and the resulting confusion and potential negative impacts for borrowers. NASFAA also urged ED to prioritize clarity, plain language, and transparent communication in the interim form, including clearly labeling it as temporary. Key recommendations included reinstating the option for borrowers to select the "lowest monthly payment" (with appropriate caveats) and proactively developing contingency plans to limit future disruptions and periods of form unavailability for borrowers amidst ongoing legal challenges.

Interest rates are determined each June 1 for the upcoming award year by adding a fixed percentage to the high yield of the 10-year Treasury note auctioned at the final auction prior to June 1. As a result of the May 6 auction, the interest rate for federal loans first disbursed on or after July 1, 2025 are expected to slightly decrease from 6.53% to 6.39% for undergraduate Direct Loans, from 8.08% to 7.94% for graduate/professional Direct Unsubsidized Loans, and 9.08% to 8.94% for Parent and Grad PLUS loans. The interest rate caps for these loans are 8.25%, 9.5 %, and 10.5%, respectively. Federal Student Aid (FSA) released a chart explaining the changes.

Academic transcripts the school receives for transfer students must be reviewed before the student's next regularly scheduled satisfactory academic progress (SAP) evaluation that occurs after the transcript is received. View the full answer to this question to learn more.

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