The Ombuds Observer

August 2025 | Edition 002

Welcome to the August 2025 issue of The Ombuds Observer! Each issue brings helpful tips and timely updates on education loans, as well as a few insights to make the whole process a little less overwhelming. We’re glad you’re here!

Spotlight

One Big Beautiful Bill Act Signed Into Law

On July 4, 2025, the One Big Beautiful Bill Act (OBBB) was signed into law. The bill made sweeping changes to federal student loan programs including borrower repayment and forgiveness options. Our office is working closely with our state and federal partners to review the changes and break down the impact on Connecticut borrowers. In the coming months, we will continue to use this space to spotlight those changes.

Here are two comprehensive resources that detail some of these changes:

NASFAA | Federal Student Aid Changes from the OBBB

NCLC | Big Bill Means Big Changes for Student Loan Borrowers: What You Need to Know

Repayment Rundown

Interest Accrual Resumed on Saving on A Valuable Education (SAVE) Plan

The U.S. Department of Education announced last month (July 2025) that interest accrual would resume on August 1, 2025, for borrowers enrolled in the Saving on A Valuable Education (SAVE) Plan.

During the summer of 2024, borrowers enrolled in SAVE were placed into an interest-free forbearance due to legal challenges against SAVE. Since then, the plan has remained in limbo, with the 8^th Circuit Court of Appeals upholding an injunction in February 2025 that blocked the SAVE plan in its entirety. Currently, the Eastern Missouri lower district court is tasked with issuing a final ruling on the program’s fate, but the timeline remains unclear when a decision will be officially made.

SAVE plan borrowers are still in forbearance and are not required to make a payment, however the Office of the Student Loan Ombudsperson strongly encourages borrowers to log onto StudentAid.gov to review all payment options available to them. Additional information can be found in the Consumer Alert issued July 16th.

SAVE Consumer Alert

Student Loan Reimbursement Program applications reopen August 15, 2025

The application portal for the Student Loan Reimbursement Program (SLRP) administered by the Connecticut Office of Higher Education (CT OHE) has reopened!

The SLRP is “aimed at providing financial relief to Connecticut residents burdened with student loan debt,” per CT OHE, and recipients receive up to $5,000 of student loan payments per year up to a maximum of $20,000 over four years. Applicants are awarded on a first-come, first-serve basis pending review and approval of eligibility requirements.

Check out the attached flyer for eligibility requirements and how to apply!

Up to

$5,000 per year | $20,000 max | 4 Years

Federal Update

Negotiated Rulemaking for Higher Education 2025

Negotiated Rulemaking can lead to major changes in how student loan programs function. Recent sessions have significantly altered repayment options and expanded forgiveness programs, often as part of efforts to address systemic issues in higher education financing.

Key topics in recent Negotiated Rulemaking sessions have included:

Income-Driven Repayment (IDR) reforms (e.g., SAVE Plan)
Borrower Defense to Repayment (for defrauded borrowers)
Loan Discharges (e.g., for permanent disability, closed schools)
Public Service Loan Forgiveness (PSLF)
For-profit college accountability

Two new negotiated rulemaking sessions have also been announced in order to implement the higher education changes put forth in the One Big Beautiful Bill Act (OBBB). Additionally, in July 2025, guidance was sent by the Office of Federal Student Aid (FSA) to institutions of higher education detailing immediate changes effective upon enactment of the bill.

For more information on the next steps for Negotiated Rulemaking and the changes implemented upon enactment of the OBBB, please review the following publications:

Upcoming Events

Student Debt Clinic Webinar

Join Student Loan Ombudsperson, Michelle Jarvis-Lettman, as she teams up with the Student Debt Crisis Center for a Zoom webinar discussing budget reconciliation, SAVE plan changes, and PSLF.

Session Date & Time:

August 19, 2025

7:00 p.m. ET