Federal Student Aid Programs Altered by New Legislation and Transparency Report

The U.S. Department of Education has updated guidance on student loan forgiveness and discharge pathways following the "One Big Beautiful Bill Act." This legislation modifies income-driven repayment plans, restricts Parent PLUS borrower options, and reimposes federal taxation on certain loan discharges. Additionally, the 2025 College Affordability and Transparency Report was released, providing clarity on higher education costs. These changes significantly impact federal student aid and loan repayment for many borrowers.