The U.S. Department of Education has reclassified theology studies as nonprofessional, impacting the federal loan eligibility for graduate students in the field. This change, occurring amidst broader student loan reform and legal challenges to the administration’s definitions, means theology students will now face lower borrowing limits, similar to other nonprofessional programs. While the Master of Divinity degree retains professional status due to its practical application, PhDs in theology are now categorized as nonprofessional, potentially affecting the financial planning of approximately 70,000 enrolled students.
Read More
Student-loan borrowers enrolled in the SAVE plan will receive information regarding next steps following a new 8th Circuit ruling. This ruling directs a district court to approve a settlement aiming to eliminate the SAVE plan, a key affordable repayment program created by the Biden administration. Consequently, enrolled borrowers will be transitioned to different repayment plans, with a limited window to select a new one. Advocates have criticized this decision, predicting significant increases in borrowers’ annual bills.
Read More
In a recent announcement, the Trump administration revealed plans to begin wage garnishment for student loan borrowers in default. Starting the week of January 7th, the Department of Education will notify approximately 1,000 defaulted borrowers, with the number of notifications expected to grow. The government has the authority to seize up to 15% of a borrower’s after-tax income, ensuring borrowers retain at least $217.50 weekly, as per legal requirements.
Read More
John Q. Hosedrinker