Whether you’re supporting a child going to college or still paying off your own student loans, 2025 has brought more questions than answers when it comes to financial aid. With federal student loan forgiveness efforts in flux, technical problems with the Federal Application For Student Aid program (FAFSA) rollout, and changes to repayment plans, it’s no wonder many are feeling overwhelmed.
This guide is here to cut through the confusion with essential updates, deadlines, and steps you can take right now.
Key FAFSA Dates for 2025 – 2026
If your child is planning to attend college in the 2025 – 2026 school year, the FAFSA is the first step in accessing grants, scholarships, work-study, and federal loans.
- FAFSA Opened: November 14, 2024
- Federal FAFSA Deadline: June 30, 2026
- Corrections Deadline: September 14, 2026
However, don’t wait. Most colleges and states have much earlier priority deadlines that determine eligibility for limited aid funds.
What’s Going On With Student Loans?
For IAM members who are already repaying student loans, 2025 continues to bring big shifts:
Loan Repayment and Interest Resumption
Interest on federal student loans resumed on September 1, 2023, after the 3.5-year COVID-19 pause. Payments resumed on October 1, 2023. If you haven’t resumed payments, your loan may already be accruing interest, and you could be at risk of delinquency.
Additionally, there was a 12-month “on-ramp” period through September 30, 2024, where missed payments were not reported to credit bureaus and did not lead to default. This period is now over, and collections have resumed.
The SAVE Plan: A New Option
The new Saving on a Valuable Education (SAVE) plan is the most generous income-driven repayment option yet:
- Payments are based on your income and family size
- You could end up paying as little as $0 per month if your income is low enough
- Forgiveness is possible after 10–25 years, depending on your balance and loan type
- If you qualify for this plan, unpaid interest will not be added to your balance
To apply for the SAVE plan, visit studentaid.gov/idr.
One-Time IDR Adjustment
The Income-Driven Repayment (IDR) adjustment is a significant change in 2024 – 2025:
- The Department of Education is giving borrowers retroactive credit for past repayment time, including certain periods of deferment and forbearance.
- If you’ve been in repayment for 10 – 25 years, you may qualify for immediate forgiveness.
- If you have older loans, such as FFEL, Perkins, or Parent PLUS loans, you may need to consolidate them by June 30, 2025 to qualify for this credit.
What Should I Do Next?
Here’s a checklist for existing student loan borrowers:
- Log into studentaid.gov
→ Confirm your loan servicer and review your loan status. - Enroll in the SAVE Plan
→ If your monthly payment is unaffordable, this plan can lower your payment based on your income. - Consolidate Older Loans
→ If you have FFEL, Perkins, or Parent PLUS loans, consolidate them by June 30, 2025, to take advantage of the IDR adjustment. - Check for PSLF Eligibility
→ If you’ve worked in public service (government, schools, unions, etc.), you may qualify for Public Service Loan Forgiveness (PSLF).
