What Parents Need to Know About FAFSA Chaos, Loan Forgiveness & College Costs in 2025

In this timely episode, Matt Carpenter and Peg Keough break down the latest chaos in the world of student loans and college financial planning. With recent announcements about the

Department of Education’s restructuring—including the controversial shift of the Office of Federal Student Aid under the SBA—families across the country are left wondering what this means for their financial aid, loan forgiveness programs, and college affordability.

Matt and Peg discuss the real-time impact on current borrowers, the challenges of FAFSA system failures, and offer crucial insights into why keeping meticulous loan records is more important than ever. They also dive into bold predictions around the potential elimination of Parent PLUS Loans, the long-term effects on college pricing, and how families can prepare smarter now.

Whether you have a senior choosing between colleges or a younger student on the path to higher ed, this episode offers powerful advice, action items, and a dose of perspective every family needs.

🔑 Topics Covered:

• Loan forgiveness program freezes
• FAFSA glitches & system breakdowns
• Impact of shifting Federal Student Aid to the SBA
• Why PLUS Loans may disappear
• Action steps for the Class of 2025 and beyond
• Setting realistic college expectations with your child
• The case for trade schools and alternate education paths

👉 Subscribe and share with families navigating college planning!

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Chapters

1. Introduction (00:00)
2. Department of Education Changes (03:11)
3. Current Borrowers and Loan Servicing Challenges (05:59)
4. FAFSA Issues and Their Impact (08:56)
5. The Importance of FAFSA for College Access (12:01)
6. Predictions on Student Loan Changes (17:53)
7. The Impact of Student Loans on Families (24:01)
8. Setting Expectations for College Costs (28:24)
9. Navigating College Choices and Financial Aid (31:56)
10. The Future of College Affordability (38:33)
11. Taking Control of College Financing (46:57)