Colleges and student loan borrowers are facing another week of shifting federal rules, proposed legislation, and new university affordability initiatives.
Here’s a quick look at the most important stories shaping higher education and student personal finances for October 31, 2025.
🎓 Headlines at a Glance
- Education Department finalizes new Public Service Loan Forgiveness rules.
- Senators Warner and Kaine introduce a bill to pause student loans during government shutdowns.
- Student loan forgiveness processing continues despite government shutdown.
- Colgate University expands free-tuition financial aid program.
Admissions office at Colgate University.
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1. Education Department Finalizes New PSLF Rule
The U.S. Department of Education issued a final rule revising the Public Service Loan Forgiveness (PSLF) program. The rule changes the definition of a qualifying employer to prevent any employer from engaging in any conduct deemed to have a "substantial illegal purpose." Officials said the goal is to ensure long-term stability of the program while protecting taxpayer dollars, but critics warn the definitions are broad and political.
➡️ Impact: The change is expected to block approximately 10 employers per year, according to the Department of Education. Lawsuits have already been announced to challenge the rule.
2. Senators Warner and Kaine Propose Student-Loan Pause During Shutdowns
Senators Mark Warner (D-Va.) and Tim Kaine (D-Va.) introduced the Shutdown Student Loans for Feds Act, which would automatically pause payments and interest accrual for federal workers, contractors, and military personnel during any government shutdown. The measure aims to prevent financial strain on public-sector employees affected by delayed pay.
➡️ Impact: If enacted, the pause would function similarly to pandemic-era relief, shielding roughly 2 million workers from missed payments or delinquency during future funding lapses.
3. Loan Forgiveness Approvals Still Moving Forward
Despite the ongoing federal government shutdown, the Education Department is continuing to approve student-loan forgiveness applications for eligible borrowers under income-driven repayment and PSLF programs. Officials have confirmed that existing staff and contractors are processing discharges, though its unclear how many staffers are working and what's actually being processed.
➡️ Impact: Borrowers nearing forgiveness thresholds may see relief, but communication delays and limited staff capacity could slow final processing.
4. Colgate University Expands Free-Tuition Financial Aid Program
Colgate University announced a major expansion of its Colgate Commitment initiative. Starting fall 2026, students from families earning up to $175,000 annually will attend tuition-free, and those from families up to $200,000 will have all demonstrated need met without loans. Colgate is the number 3 most expensive college in the United States based on tuition.
➡️ Impact: The move positions Colgate among a small group of private universities offering middle-income families a path to attend without borrowing, reflecting a growing push toward debt-free models.
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Editor: Colin Graves
Robert Farrington is the founder of The College Investor and is widely recognized as one of the nation’s leading voices on student loan debt and saving for college. He holds an MBA from UC San Diego Rady School of Management and has spent over 15 years researching, writing, and advising on student loans, 529 plans, financial aid programs, and saving and investing for young professionals.
Robert has been featured in the The New York Times, The Wall Street Journal, The Washington Post, NBC News, and Forbes, where he has been a regular personal finance contributor for over a decade. His work combines both professional expertise and personal experience – he successfully navigated his own student loan repayment journey and has helped thousands of readers do the same.
He is committed to making the intersection of personal finance and education transparent and accessible. You can learn more about Robert on the About Page or on his personal site RobertFarrington.com.