For loans disbursed between July 1, 2025, and June 30, 2026, undergraduate rates will be set at 6.39 percent, a decline from last year's 6.53 percent.

The education portion of the Republicans' proposed federal budget would replace all income-driven repayment plans and decrease the amount of financial aid students can receive.

Celina Damian’s phone has been ringing off the hook with one bewildered, anxious question after another: “What kind of loan is this?” “Am I in default?” “Will the government really take my wages?”