What Borrowers Need to Know About Student Loans in 2025
As of May 2025, millions of student loan borrowers are facing big changes. Whether you’re currently making payments, navigating loan forgiveness, or just starting to plan for college, it’s more important than ever to stay informed.
At Scott Credit Union, we’re committed to supporting our members with reliable student loan resources and financial wellness tools to help you take control of your financial future.
What’s Happening with Student Loans Right Now?
Student loans in the United States are undergoing some of the biggest shifts in recent years. Here are the most important updates as of spring 2025:
1. Collections on Defaulted Federal Student Loans Have Resumed
After more than five years on hold, the U.S. Department of Education has restarted collections for borrowers in default. This means borrowers may see actions like wage garnishment or tax refund offsets if they haven’t taken steps to resolve their default status.
2. Student Loan Delinquencies Are Rising
According to data from the Federal Reserve, serious delinquencies (missed payments of 90 days or more) have increased in early 2025. Many borrowers are still adjusting after the end of the pandemic-era payment pause.
3. Income-Driven Repayment (IDR) Plans Are in Flux
The rollout of the SAVE plan (an updated income-driven repayment option) has been in flux due to ongoing legal reviews. Individuals who signed up for or requested the SAVE Plan are still in forbearance unless their status has changed.
What Can You Do Now?
Here are a few steps every student loan borrower should consider:
Check Your Loan Status. Log into your Federal Student Aid account to view your loan servicer, repayment plan, balance, and due dates. Knowing your current status is key to avoiding penalties or collections.
Explore Repayment Options. Even with changes to repayment plans, most borrowers still qualify for standard, graduated, or income-driven repayment options. Contact your servicer to find the best fit based on your income and loan amount.
Budget for Student Loan Payments. If your payments have restarted, update your monthly budget to include them. Small adjustments now can prevent financial stress later.
Avoid Default. If you’re behind or at risk of default, explore options like loan rehabilitation or consolidation. These programs can help you get back into good standing and stop collections.
How Scott Credit Union Can Help
Scott Credit Union is more than your local credit union; we’re your financial partner. We offer a full range of tools to help you manage student loan debt and build long-term financial wellness.
Educational Videos. Learn about student loan repayment strategies, refinancing options, and budgeting tips in our Who Knew? SCU financial education videos.
Blog Library. Our blog is full of articles that answer common questions like:
- How do I manage my debt and pay back student loans?
- How do I navigate repaying student loans after the COVID-19 payment pause?
- How do I create and use a budget?
Student Loan Refinance Options. Looking to lower your monthly payment or interest rate? Ask about student loan refinancing.
Knowledge Is Power, Especially With Student Loans
Whether you’re returning to repayment, just out of school, or helping a family member prepare for college, Scott Credit Union is here to help. We provide tools, personalized support, and financial education to help you manage your student loans.
Explore our free financial education resources today and discover how Scott Credit Union can help you make smart student loan decisions.
