• Senate bill S. 5451 would limit Pell Grants to U.S. citizens and nationals, removing eligibility for green card holders and refugees
• Undocumented and DACA students are already ineligible for federal student aid, so the bill affects lawful noncitizens like permanent residents, refugees, and asylees.
• A student who qualifies for the full 2026-27 award would lose up to $7,395 a year, though federal loans and work-study would remain available.

I’m curious if anyone has filed a complaint with the FSA Ombudsman regarding how their school is calculating Expected Time to Credential (ETTC) for legacy Grad PLUS eligibility, and whether you’ve had any success.
My university is continuing to use the time-based calculation despite the Department of Education’s August 12 webinar discussing a credit-based methodology for non-transfer students. I’ve also seen NASFAA’s September 17 Q&A mentioning that the FSA Ombudsman’s office reportedly directed a school to recalculate an individual student’s ETTC using completed credits.
I’m enrolled part-time in a graduate program, so the difference between counting completed trimesters versus actual credits earned could significantly affect how long I remain eligible for Grad PLUS loans. I also completed prerequisite leveling courses that aren’t included in my degree’s required credits, but my school counted that trimester toward my utilized ETTC (while adding a trimester to the program’s expected length).
My university has reviewed the issue through its financial aid and compliance departments but is sticking with the time-based calculation. I recently submitted a formal complaint through the FSA Feedback Center requesting an independent review.
Has anyone else:
● Filed an ETTC-related complaint with the FSA Ombudsman?
● Received a response or been told their school needs to recalculate using credits?
● Had their university actually change their legacy Grad PLUS eligibility after the August guidance?
I’m especially interested in hearing from non-transfer graduate students whose schools initially refused to recalculate. I’m trying to get a sense of whether anyone has made progress and what the process or timeline looked like.
Thanks in advance!

• The FDIC national average savings rate is 0.38%. Top online banks pay over 4.25%.
• Openbank's 4.35% and CIT Bank's 4.25% are six-month promos.
• Peak Bank pays 4.27% on balances up to $499,999 with a $100 minimum.

• Harvard estimates the new 8% endowment tax at about $300 million a year, while its undergrads received $18.7 million in federal grants.
• Harvard meets 100% of need, but students borrowed $7.4 million and parents borrowed $8.9 million, mostly to cover their expected share.
• 16% of the class of 2025 graduated with loans averaging $22,926, so a wealthy school still doesn't guarantee a debt-free degree.

• California's 2026 test scores: 38.4% of students proficient in math, 31.9% of high school juniors
• English proficiency rose 0.5 points to 49.3%, and math rose 1.1 points to 38.4%. Both remain below 2018-19 levels.
• Cal State uses 11th-grade scores to place admitted freshmen, so the junior-year math number affects college course placement.

• Pentagon names 5 new "distinguished military colleges": Hillsdale, Liberty, LSU, Mississippi State and Tuskegee
• A Sept. 30 memo gives cadets at these schools "Honor School" status and priority in officer commissioning
• The schools will build cadet corps modeled on the 6 senior military colleges like Texas A&M and The Citadel

• Treasury now lets carryforwards from 2020 to 2024 count toward the refundable part of the 2025 adoption credit.
• No amended return is needed in most cases. The IRS sends a notice within about 30 days, and Where's My Refund won't show the payment.
• If you left the carryforward off your 2025 return, you may need to file Form 1040-X. Your 2026 carryforward also shrinks by the refunded amount.

• The Washington Sun reports FSA could become an independent agency by Oct. 1, 2027, led by FSA's COO with the White House budget office.
• Federal law keeps FSA inside the Education Department, so a spin-off would need an act of Congress.
• Nothing changes for payments or servicers today. The department allegedly presents its plan to OMB next week.

• Graduated payments on a $35,000 loan at 6.39% start at $227 and rise to $681, but stay below the $395 Standard amount for the first six years (making those years ineligible for PSLF)
• Extended Graduated costs $41,193 in interest and pays down just $511 of principal in five years

• ED's updated SAVE page: missing the 90-day deadline triggers a final 30-day notice before auto-enrollment
• After the 90-day window, servicers send a "Final Notice – You will be Placed into a New Repayment Plan in 30 Days" email
• Borrowers who still don't choose get Standard, or Tiered Standard if they have a loan disbursed on or after July 1, 2026 in repayment

• 36.6% of people earning $500K+ say they live paycheck to paycheck, vs. 22.2% at $100K–$200K
• Paycheck-to-paycheck rates bottom out at $100K–$200K and rise with every bracket above it
• Goldman attributes it to lifestyle expectations and larger fixed costs, not trouble covering basics

• RAP and IBR payments are based on AGI, so traditional 401(k), HSA, and FSA contributions lower your payment.
• Pre-tax payroll deductions (traditional 401(k)/403(b)/457(b), HSA, dependent care FSA, health FSA, commuter) never hit box 1 of your W-2, so they never reach AGI.
• The lower payment only saves money on a forgiveness track, but the tax savings apply to everyone.

Drop your student loan questions below and let's help each other answer them!

• September CPI: Inflation at 3.7%, gas up 9.1% in one month
• I bonds bought by Oct 31 keep the 0.90% fixed rate and should earn about 5.00% after the first six month

• FinCEN's total penalty is $1.2 billion, which credits the OCC's $750 million.
• The OCC says the bank failed to properly monitor trillions of dollars in transactions since at least 2019.

• 36 of the 47 programs are at Commonwealth Campus colleges, with Harrisburg and University College at 9 each
• Three programs from the spring list moved to a one-year review instead, and 71 total programs now face review within a year
• Penn State says 24 programs will still be offered through another college

• Buyback is priced at what you would have paid on IBR, PAYE or ICR, whichever is lowest.
• For pauses of 12+ months it uses your tax return AGI and family size for each calendar year. Under 12 months uses the income on file.
• Months that would have had a $0 IDR payment count without a buyback payment, and IBR/PAYE months are capped at your 10-year Standard payment.

• Most free tuition programs at 871 colleges relabel aid low-income students were already getting
• At public flagships, a $45,000-income family got $16,900 in grants vs. $15,300 in tuition before free tuition existed.
• The families who save the most are those just below each cutoff, about $72,300 to $82,400 at public flagships.

• University of Arizona proposes freezing tuition, fees, housing and meal plans for all students in 2027-28.
• In-state undergrad tuition would stay at $12,168 for a fourth year.
• Out-of-state and grad students are included for the first time.

• The Blue and Gold Opportunity Plan is worth $15,588 a year for students entering at every UC campus
• Students qualify through the FAFSA or Dream Act Application plus the Cal Grant GPA form by March 2, with no separate application

• Statewide enrollment fell 1.4%, and nearly 60% of the losses came in grades K-5
• Texas 2036 cites lower birth rates and charter and private schools gaining market share
• 85,344 students are now using the state's new education savings accounts, which launched after this enrollment count

Hello all,

I have a question regarding custodial accounts. I have a nephew that I would like to start a custodial account for. His grandparents have started a 529 for him but I’d like to start and contribute to a custodial account.

My question is - could this negatively impact him down the road when applying for student loans if needed?

What complications could it make for him (tax issues) if any after he turns 18?

I appreciate any responses.

He is 4yrs old and I plan on contributing about $100 a month to the account.