The College Investor

The Question

Why do you keep calling graduated repayment ‘a trap’?

— Anonymous Facebook User

Welcome to the Friday mailbag, where we take one reader question and answer it. Have one? Send it to us — details at the bottom.

The Short Answer

The

Key Points

The Washington Sun reported the Education Department wants to make Federal Student Aid an independent agency by Oct. 1, 2027. A spokesperson for the department called the report “fake news,” and the White House budget ...

Key Points

SAVE borrowers who miss their 90-day deadline will get one final 30-day notice from their servicer. Anyone who still doesn’t act gets moved to the Standard or Tiered Standard plan, and Tiered Standard payments don’t count toward PSLF. Deadlines vary because each borrower’s 90-day clock starts on the date of their own servicer notice.

The...

Key Points

Goldman Sachs found 36.6% of Americans earning above $500,000 live paycheck to paycheck, a higher share than people earning $50,000 to $100,000. Paycheck-to-paycheck rates bottom out at 22.2% for the $100,000 to $200,000 bracket. Goldman links the climb above that level to rising lifestyle expectations. Only 39% of workers increased their