EPISODE RESOURCES

Updated Payment Guidance from Department of Ed

Federal Student Loan Updates: MOHELA Default Letters, IDR Recertification Tips, New On‑Time Rules, PSLF Tracker Issues, Borrowing Limits Lawsuit, and PSLF Buyback Progress

In 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 Intro
01:49 MOHELA Default Letter Error
03:11 Recertify Income Smartly
07:19 Grace Period Removed
10:17 RAP Subsidy Rules
13:32 PSLF Tracker Disappears
17:45 Borrowing Limits Lawsuit
19:56 PSLF Buyback Speeds Up
21:31 Wrap Up Next Steps