This conversation delves into the significant changes brought about by the One Big Beautiful Bill Act, particularly focusing on student loans, FAFSA, Pell Grants, and the implications for families planning for college. Mike Hunsberger, a subject matter expert, provides insights into the complexities of the new legislation, including changes to repayment plans, borrowing limits, and the impact on families with existing loans. The discussion emphasizes the importance of understanding these changes and being proactive in financial planning for education.

Chapters

00:00 Introduction to Student Loan Changes

03:37 Historical Context of Student Loan Repayment

06:31 FAFSA Changes and Implications

09:30 Pell Grant Provisions and Accessibility

12:36 Direct Student Loans: What Remains the Same

15:26 Graduate School Loan Changes

18:25 Parent Plus Loan Adjustments

21:18 Impact on Family Financial Planning

24:35 Repayment Plan Changes for Existing Borrowers

27:18 Navigating Parent PLUS Loans and Repayment Plans

33:52 Expanding Opportunities with 529 Plans

38:14 College Planning for Military Families

44:35 Strategies for Families Facing Student Loan Changes

Takeaways

• The One Big Beautiful Bill Act has introduced major changes to student loans.

• FAFSA has undergone revisions that affect small business owners.

• Pell Grants are now more accessible for shorter-term education programs.

• Direct student loan borrowing limits remain unchanged for undergraduates.

• Graduate school borrowing limits have been capped significantly.

• Parent Plus loans will now have annual and total borrowing caps.

• Existing borrowers need to be aware of new repayment plan options.

• The new repayment plans may extend payment periods to 30 years.

• 529 plans have expanded usage for educational expenses.

• Families must be proactive in understanding their financial options for education.

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Disclaimer: This podcast represents the views of the hosts and any guests. It is for informational purposes only and should not be considered tax, financial, or legal advice. All information is regarded to be from reliable sources. The hosts are not responsible for any losses, damages, or liabilities that may arise from the use of this podcast. This podcast is not intended to replace professional, individualized advice.