US Department of Education faces scrutiny as student debt rises to $1.7T

Carolyn Fast: Carolyn Fast serves as director of higher education policy at The Century Foundation, a progressive think tank focused on education access and equity. She is quoted in the news emphasizing the long-term financial risks borrowers face amid unpredictable job markets and shifting loan rules. Donald Trump: Donald Trump is the current President of the United States whose administration advanced the OBBBA legislation reshaping federal student loan repayment. The bill's provisions, as discussed in the news, have shortened or eliminated certain borrower protections and extended repayment timelines. Rich Williams: Rich Williams is a former deputy assistant secretary at the U.S. Department of Education. He appears in the news arguing that high-quality education remains a key path to the middle class, even as frequent policy changes increase borrower risk and complexity. Mark Kantrowitz: Mark Kantrowitz is a higher education expert who analyzes student debt trends and repayment dynamics. The news references his work on the growing number of high-balance borrowers and the challenges of treating education loans as uniformly 'good debt.' Nadine Chabrier: Nadine Chabrier is a senior policy counsel at the Center for Responsible Lending, a nonprofit focused on fair financial practices. She is cited discussing how prolonged student debt hinders wealth-building milestones like homeownership and retirement savings. Michael Madowitz: Michael Madowitz is the principal economist at the Roosevelt Institute, a left-leaning think tank. In the news he comments on how rising college costs allow institutions to capture gains while AI disrupts entry-level job security for graduates. Pew Research Center: The Pew Research Center is a nonpartisan think tank that conducts public opinion research on social issues, including education affordability and outcomes. Its 2025 study highlighted in the news shows widespread public skepticism toward colleges' performance on tuition costs and job preparation. U.S. Department of Education: The U.S. Department of Education is the federal agency responsible for administering national education policy, including oversight of federal student loan programs and forgiveness initiatives. In the context of this news, the department is implementing changes from the OBBBA by recalculating borrower progress under programs like PSLF due to prior coding issues and enforcing new repayment structures that limit options for deferment and relief. Job Market: AI-driven automation is reducing entry-level hiring in fields like technology, leading students and families to reassess the financial return on a college degree amid a more uncertain employment landscape. Policy Change: The OBBBA has consolidated repayment options into longer-term plans while removing several deferment and forgiveness pathways previously available to borrowers facing unemployment or hardship. Public Opinion: Recent surveys indicate broad dissatisfaction with higher education's value, particularly regarding affordability and preparation for current economic conditions.