The Ombuds Observer

July 2025 | Edition 001

Welcome to the debut issue of The Ombuds Observer! Each issue will bring 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

Welcome from Connecticut's Inaugural Student Loan Ombudsperson

We’re thrilled to launch this new platform as a space to bring you the latest on education loans – what’s changing, what it means for borrowers, and how to stay ahead. The Office of the Student Loan Ombudsperson is headed by Michelle Jarvis‑Lettman (pictured), a seasoned higher‑education professional with over 15 years of experience in student financial services. Housed within the Connecticut Department of Banking, the Office is tasked with resolving borrower complaints, analyzing statewide loan issue trends, and educating the public, legislators, and agencies about borrower rights for education loans. Whether you’re navigating repayment, exploring forgiveness options, or just trying to make sense of the fine print, we’re here to break it all down.

“I am passionate about empowering borrowers—ensuring they understand their rights, navigate repayment complexity, and advocate for fair treatment.”

Michelle Jarvis-Lettman

Repayment Rundown

Income-Driven Repayment Plan Applications are Open

Income-Driven Repayment (IDR) plan applications are open for federal education loan borrowers. Head on over to Federal Student Aid to apply for a new IDR plan, recertify an existing IDR Plan, or to learn more about how an IDR plan can help make your loan payment more affordable.

Learn More

Borrowing Basics

Federal Direct Loan Interest Rates for 2025-2026

Federal Direct Loan Interest Rates for the 2025-2026 Academic Year have been released. The interest rates listed below are for Direct Loans first disbursed on or after July 1, 2025 and before July 1, 2026. These interest rates are fixed over the life of the loan.

Direct Loan Type	Borrower Type	Interest Rate
Direct Subsidized and Unsubsidized Loans	Undergraduate	6.39%
Direct Unsubsidized Loan	Graduate or Professional	7.94%
Direct PLUS Loan	Graduate, Professional, or Parent	8.94%

Learn More at Federal Student Aid

First Time Federal Education Loan Borrowers

If you are a first time federal student loan borrower, you will need to complete Entrance Counseling and a Master Promissory Note (MPN) before your college or university can receive funding.

Entrance Counseling is a review session highlighting borrower responsibilities and obligations.

Entrance Counseling

The MPN is a legal document that describes the terms and conditions of your loan and by signing you are promising to repay your loan(s) and any accrued interest and fees.

Master Promissory Note

Private Education Lending

Did you know that your college or university has a Preferred Lender List for private education loans? Check your college or university’s Financial Aid Office webpage for their list.

Private education loans are not federally or state based and each lender has their own eligibility criteria.

Federal Update

Negotiated Rulemaking for Higher Education 2025

Negotiated rulemaking occured earlier this month in Washington, D.C. Sessions were held June 30 - July 2, 2025. Proposed changes to repayment plans and Public Service Loan Forgiveness (PSLF) were discussed.

What is Negotiated Rulemaking?

Negotiated rulemaking is often used by the U.S. Department of Education to develop or update federal student loan policies and regulations. The Department invites key agency stakeholders – such as borrower advocates, loan servicers, schools, and lenders – to convene and negotiate the terms of new or revised regulations, with the goal of reaching a consensus on the text of the proposed rule.

Negotiated Rulemaking FAQs

Upcoming Events

Student Loan Fund Office Hours Webinar

Student Loan Fund (SLF), in conjunction with Connecticut's Student Loan Ombudsperson Michelle Jarvis-Lettman, will be hosting an informative Zoom session breaking down the "Big Beautiful Reconciliation Bill" and it's potential impacts on Connecticut education loan borrowers.

Student Loan Fund is a borrower-led organization committed to building CT student loan borrower power and organizing and changing higher education financing systems.

Session Date & Time:

July 30, 2025

5:30 p.m. ET