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student loans

NJ Teachers Get Loan Relief: Program Aims to Tackle Shortage

by Priya Shah – Business Editor September 8, 2025

written by Priya Shah – Business Editor

New Jersey‘s Teacher Loan Redemption Program Gains Traction in Addressing Teacher Shortages

New jersey’s⁣ Teacher Loan Redemption Program, launched in 2021, is proving popular as ⁢the state seeks to attract and retain⁤ educators in critical subject areas. ‌While applications‌ for the current year are now closed, the program has seen a significant increase in ⁣interest following initial limitations.

The ‍program offers up to $20,000 in student loan debt‍ relief over four years, with ‍a maximum ⁢of $5,000 repaid annually, to qualifying teachers. Loan ⁢redemption payments cover 25% of the principal‍ and interest on eligible student ‌loan expenses. The program is administered by the state’s Higher Education Student Assistance Authority (HESAA) and was recently funded with a $5 million appropriation.

To be eligible, ‍applicants must be ‍New Jersey residents with a valid state teaching certification, employed in a qualifying school, and ‍teaching a high-need subject. For⁣ the 2025-26 school year, those subjects include ‍English⁣ as a Second Language, bilingual education, world languages, mathematics, science, special education, and specific areas within career and technical education.

The program experienced a slow start in its first year (fiscal year 2023), with only two participants, due ‌to restrictions limiting eligibility to borrowers with NJCLASS loans. However, the state broadened the applicant pool to include other loan types in subsequent ⁣years, leading to a surge in applications ‍and a corresponding increase in the ⁤number of applicants who did not qualify.

Between 2023 and 2025, 580 applicants were ‍denied.‍ The most common reasons for ineligibility in fiscal years 2024 and 2025 ‍were teaching in a non-qualifying school, teaching a subject not identified⁣ as high-need by the state, or failing to submit ‍required documentation.

Applicants ‌must have been hired on or after January 1, 2009, to teach ⁤in a high-need field and must have a clean student loan record, with no prior defaults. Eligible loans include federal, NJCLASS, and private loans used for tuition, and reasonable education and living expenses related to obtaining a degree, as outlined‌ by HESAA.

September 8, 2025 0 comments

World

Fed’s Impact: How Interest Rates Affect Mortgages, Cars, and More

by Priya Shah – Business Editor July 30, 2025

written by Priya Shah – Business Editor

new Car Affordability Crisis Deepens as Monthly Payments Soar Past $1,000

A significant portion of new car buyers are now facing monthly payments exceeding $1,000, an all-time high, according to recent data. This trend is exacerbated by factors including pressure from former President Trump’s tariffs on imported vehicles and car parts, which have driven up costs for consumers.

Joseph Yoon, consumer insights analyst at Edmunds, noted that buyers are stretching their budgets, opting for longer loan terms and higher monthly payments to acquire new vehicles. He cautioned that these affordability challenges are deeply entrenched and unlikely to be instantly resolved by Federal Reserve actions on interest rates.

Student Loans: Rates Fixed, But Other Headwinds Emerge

Federal student loan interest rates are set annually based on Treasury note auctions and remain fixed for the life of the loan. For the 2025-26 academic year, undergraduate federal student loan rates are 6.39%. While existing borrowers are shielded from rate fluctuations, many are encountering other difficulties, including fewer federal loan forgiveness options and a popular repayment plan currently on hold.Savings Accounts Offer Strong returns

In contrast to the borrowing landscape, savings accounts continue to provide attractive returns, with top-yielding online accounts offering over 4%, according to Bankrate. While the Federal Reserve does not directly influence deposit rates, these yields are generally correlated with changes in the federal funds rate. The current habitat, with savings rates exceeding inflation, is considered advantageous for savers. Greg McBride, chief financial analyst at Bankrate, advises individuals to capitalize on this favorable period for saving.

July 30, 2025 0 comments

World

Trump Challenges Fed as Interest Rate Cut Hopes Dim

by Priya Shah – Business Editor July 28, 2025

written by Priya Shah – Business Editor

Federal Reserve Holds Rates Steady, But Borrowers and Savers Feel the Pinch

The Federal Reserve announced today that it will maintain its benchmark interest rate at its current level, a decision that continues to impact various aspects of the U.S. economy. While the Fed’s move offers a degree of stability, the lingering effects of elevated interest rates are being felt by consumers across the board, from housing to credit cards and auto loans.Housing Affordability Remains a challenge

Despite the Federal Reserve’s decision, housing affordability continues to be a critically important concern for many Americans. High home prices, which reached a record high in June, coupled with elevated mortgage rates, are creating a challenging surroundings for prospective buyers. Eugenio Aleman, chief economist at Raymond James, noted that the housing market “continues to struggle under high home prices as well as high mortgage rates.”

Credit Card Rates Stay Elevated

For consumers relying on credit cards, the Federal Reserve’s benchmark rate has a direct impact due to the variable nature of most credit card APRs. Currently, the average annual percentage rate (APR) for credit cards hovers just above 20%, according to Bankrate, a level not far from last year’s all-time record. Greg McBride, chief financial analyst at Bankrate, described credit card rates as being “in a holding pattern at a very elevated level.” Experts suggest that even a reduction of 3 percentage points in APRs would not substantially alleviate the burden for those carrying revolving balances.

Auto Loan Payments Continue to Rise

Auto loan rates are fixed for the duration of the loan, meaning that existing loan payments remain unchanged. However, new car buyers are facing increasingly larger payments due to rising car prices. This pressure is further exacerbated by potential tariffs on foreign-made vehicles and parts. The average rate for a five-year new car loan currently stands at 7.22%, according to bankrate. Ivan Drury, Edmunds’ director of insights, observed that “Consumers are continuously stretching to afford new vehicles in this market.” Consequently, the proportion of new-car buyers committing to monthly payments exceeding $1,000 has reached an all-time high.

Savings Accounts Offer a Silver Lining

On a more positive note for savers, top-yielding online savings accounts continue to offer competitive returns, with rates currently exceeding 4%, as reported by Bankrate. While the Federal Reserve does not directly influence deposit rates, these yields are generally correlated with changes in the federal funds rate. The decision to hold the rate steady has, in turn, kept savings rates above the rate of inflation, a scenario McBride described as a “rare win.” He advises consumers to “lean into” the current environment, stating, “It’s not a good time to be a borrower, but it’s a great time to be a saver.”

July 28, 2025 0 comments

Business

It’s time for Trump to end federal student loans

by Priya Shah – Business Editor July 27, 2025

written by Priya Shah – Business Editor

Here’s a rewritten version of the article, preserving all verifiable facts and aiming for 100% uniqueness:

The current federal student loan system is a financial drain on both the goverment and aspiring college students. Projections indicate that the federal government will incur a loss of 19 cents for every dollar of federal loans it manages over the next decade. This situation represents a deficit for the federal government and a disadvantage for individuals seeking higher education.

The most effective solution lies in removing the federal government from the student loan process, advocating for the privatization of the student loan market.

Private Loans Will Not Restrict College Access

The existing system offers no benefits to anyone involved. Privatizing student loans would not limit who can attend college, but rather refine the criteria for pursuing specific degrees and attending particular institutions.

Currently, private lenders facilitate just over 7% of all student loans. Under a privatized system, private loans would continue to be offered based on established criteria, with a student’s projected ability to repay the loan influencing its availability and interest rate.

This approach would prevent individuals from undertaking degrees with a negative return on investment from overpriced universities. Though, it would still enable access to higher education for all, provided there is a realistic prospect of loan repayment. Consequently, universities would face pressure to reduce exorbitant tuition fees for degrees that do not yield financial returns, or at the very least, would primarily serve students from affluent backgrounds who can cover costs upfront.Following the initial disruption caused by the discontinuation of federal loan programs, universities would need to become more competitive to attract top students.This would likely involve measures such as reducing administrative staff, cutting funding for non-essential departments, and implementing other cost-saving strategies to enhance value for students.

Reintroducing free market principles into the cost of higher education would benefit both students and the government. It would also curb the extent to which individuals commit to loans they are unlikely to be able to repay. The only entities that would experience a reduction in their current standing are inefficient university administrators and employees within the Department of Education. This outcome appears to be a positive growth.

Dace Potas is an opinion columnist for USA TODAY and a graduate of DePaul University with a degree in political science.

July 27, 2025 0 comments

Business

Student Loan Repayment System Overhaul: Borrowers Face Increased Risk of Default

by Priya Shah – Business Editor July 17, 2025

written by Priya Shah – Business Editor

Here’s a breakdown of the key points from the provided text:

the Biden Administration’s SAVE Plan:

Generous Terms: The SAVE plan, launched in summer 2023, offered the most generous student loan repayment terms to date, with many borrowers seeing their monthly bills cut by as much as half.
Legal Challenges and Repeal: Republican-led legal challenges blocked the SAVE plan, and Congress has since repealed it.
Interest-Free Pause Ending: The interest-free payment pause for SAVE borrowers, implemented during legal challenges, will expire on August 1st.
Transition to Other Plans: The Education Department is advising SAVE borrowers to transition to other legally compliant plans, such as the Income-Based Repayment (IBR) plan.
Impact of Transition: Experts warn that monthly payments under IBR will be “more than double” those under SAVE, causing significant stress for borrowers.

Trump’s “Big Gorgeous Bill” and Future Repayment Options:

Reduced Options for New Borrowers: Starting July 1, 2026, new federal student loan borrowers will only have two repayment plan options:
A standard repayment plan with fixed payments.
A single income-based plan called the “repayment Assistance Plan” (RAP).
Higher Payments Under RAP: Monthly payments under RAP are substantially higher than those under the SAVE plan for borrowers with the same income levels.
Example: A borrower earning $80,000 per year would pay $533 per month under RAP, compared to $179 under SAVE.
* Severe Impact on SAVE Beneficiaries: The changes are expected to severely impact student borrowers for whom the SAVE plan was the only affordable option.

overall Impact:

The article highlights a significant shift in student loan repayment options, moving from the more generous SAVE plan to less favorable options under the new legislation. This will likely lead to increased monthly payments for many borrowers, particularly those who benefited most from the SAVE plan.

July 17, 2025 0 comments

Business

Big Beautiful Bill: Student Loans, Grants Changes at WKU

by Priya Shah – Business Editor July 15, 2025

written by Priya Shah – Business Editor

Bowling Green, Ky. (WBKO) – The recently signed Big Beautiful Bill introduces significant changes to federal student loan handling, prompting questions as a new academic year approaches.

“one of the most common questions that we get is ‘Is federal aid going entirely away? Will there no longer be any federal student aid options for me?’ and that’s not the case, but we do hear students that are concerned necessarily about student aid in general,” said Western Kentucky University Department of Student Financial aid Assistance Director, Bryson Davis.

Key changes include tightened Pell Grant eligibility for higher-income families and expanded eligibility for those pursuing workforce training programs. The bill also limits Pell Grant usage for students with full scholarships, reduces loan repayment options, and caps federal borrowing amounts.

“As far as positives, there are several people that seem to be pleased about the interest rates that they are seeing with private lenders already at this point, so that is a way that students, a lot of times can save a little money in the long run,” Davis said. “They’ll end up wanting to just shop those rates and make sure they’re getting the best deal, but we are seeing some private lenders that are beating the Federal rate.”

Many of these changes will not take effect until the next academic year. Western Kentucky University is awaiting further guidance on several provisions. Students are advised to continue pursuing financial aid through customary channels.

“Coming into the new school year, students need to know that they just need to fill out the FAFSA as normal, so for 25-26, we are processing aid, getting their aid offers out to students already have been for months now,” Davis explained. “just need to go ahead and get that in, and then as information is made available to us and as we receive guidance on implementation of the new changes from the Big Beautiful Bill, we will work through that and communicate that out to our students.”

WKU encourages students with questions about their current loans to reach out for assistance.

Frequently Asked Questions:

Q: is federal student aid being eliminated?
A: No,federal student aid options will continue to be available.

Q: How does the Big Beautiful Bill affect Pell Grants?
A: It tightens eligibility for families with higher incomes and expands it for those in workforce training. Students with full scholarships may also have limitations on Pell Grant usage.

Q: What are the changes to student loans?
A: The bill downsizes loan repayment options and caps the federal amount an individual can borrow.

Q: Are private lenders offering better rates?
A: Some private lenders are currently offering interest rates lower than the federal rate, which could save students money in the long run.

Q: When do these changes take effect?
A: Many of the changes will not be implemented until at least the next academic year.

Q: What should students do now?
A: Students should continue to fill out the FAFSA as usual for the upcoming academic year. WKU will provide updates as guidance on the new changes becomes available.

7 · Compliance & Disclaimers

This content provides general information regarding student loans and financial aid. It does not constitute financial or legal advice. Consult with a qualified professional for personalized guidance.

8 · Call-to-Action

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July 15, 2025 0 comments

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