Happy 529 Day! It's our favorite holiday here at The College Investor, and there's no better day to talk about saving for college. We've got 529-themed coverage running all day — including an AMA from Robert Farrington on Reddit, where he'll be answering your 529, student loan, and college savings questions throughout the day.
We also rounded up this year's 529 Day bonuses and promotional offers earlier this week, so if you've been meaning to open or fund an account, now's the time.
Beyond the celebration, this week brought a sobering counterpoint (new data showing mortgage and student loan delinquencies climbing) plus a healthcare-focused angle on the graduate loan cap lawsuit and a closer look at the new FAFSA identity-verification step.
Here's a quick look at the most important stories shaping higher education and student finances this week for May 29, 2026.
🎓 Headlines at a Glance
- It's 529 Day — Robert Farrington is hosting a Reddit AMA all day, and state plans nationwide are offering bonuses.
- Mortgage and student loan delinquencies are both climbing, per new data.
- The graduate loan cap lawsuit puts a spotlight on the looming nursing and healthcare worker shortage.
- A new FAFSA identity-verification step adds friction even as completion hits a record.
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1. It's 529 Day — Join Our Reddit AMA And Grab This Year's Bonus Offers
Today, May 29, is National 529 Day (5/29 — get it?), the annual celebration of tax-advantaged college savings plans. Americans have now saved more than $600 billion in 529 accounts, according to the College Savings Plans Network, even as it's dwarfed by the nearly $1.84 trillion in outstanding student loan debt nationwide.
That tension is exactly why 529 Day matters: every dollar saved is a dollar not borrowed later.
To mark the day, our Robert Farrington is hosting a Reddit AMA all day long, answering your questions on 529 plans, college savings strategies, student loans, and paying for college. Drop by and ask him anything.
And if you missed it, we published our annual roundup of 529 Day bonuses and promotional offers earlier this week — state plans across the country are offering limited-time incentives.
A few highlights:
- California, Kansas, and Wisconsin are offering a $50 bonus for new accounts opened
- Indiana is running a sweepstakes for a $529 deposit
- Alabama, Nevada, and Arizona are gifting $529 to newborns.
Most promotions run through the end of May, so there's still time to act.
➡️ Impact: If you've been meaning to open a 529 or boost contributions to an existing one, this week is the single best time of year to do it — the bonuses are essentially free money for following through on something you should be doing anyway.
Check our 529 Day offers roundup for your state's specific promotion, and remember that many states also offer a state income tax deduction or credit for contributions. Even a small recurring monthly contribution started now compounds meaningfully over 18 years.
2. Mortgage And Student Loan Delinquencies Are Both Climbing
New data paints a worrying picture of household financial stress. According to the Spring 2026 FICO Credit Score Insights report, mortgage and student loan delinquencies are both climbing even as consumers get better at keeping up with credit cards and personal loans. The 30-day+ mortgage delinquency rate hit 4.8% in October 2025, the highest since April 2020.
Separately, the New York Fed's Q1 2026 Household Debt and Credit report showed the serious student loan delinquency rate rose to 10.3% of balances 90+ days past due, up from 9.6% in Q4 2025, and that roughly 2.6 million borrowers more than 120 days past due had their loans transferred to ED's Default Resolution group.
The College Investor reported this week than student loan borrowers are 3.8x more like to be behind on their mortgage. One of the key factors here was the loosening of underwriting rules for student loan borrowers.
➡️ Impact: If you're struggling with student loan payments, get into an income-driven plan or the new RAP before you fall behind, rather than after. If you already own a home and bought when rates were above 8%, it may be worth running the numbers on a refinance, but only if your credit is still intact.
The broader signal here is that consumer financial stress is rising, so building an emergency fund matters more than ever right now.
3. Graduate Loan Cap Lawsuit Puts Spotlight On Looming Healthcare Worker Shortage
Following last week's lawsuit by 25 states and DC over the new graduate student loan caps, CNBC reported this week on the specific threat to healthcare fields.
Starting July 1, OBBBA caps federal graduate borrowing at $100,000 over a lifetime (but in reality they will hit the lower $20,500 annual caps first as many programs are just 2 years). The problem: ED's narrowed "professional degree" definition excludes nursing, social work, physical therapy, and occupational therapy — the exact fields already facing critical worker shortages.
Experts told CNBC the timing couldn't be worse, as the U.S. is already projecting significant shortfalls of nurses and allied health professionals over the next decade. Programs in these fields often cost more than the new $100,000 graduate cap allows, which means future students will have to turn to private loans (which require strong credit and often a co-signer) or pay out of pocket.
The lawsuit by the states argues ED added eligibility requirements not found in the statute.
➡️ Impact: If you're planning to pursue an advanced nursing degree (like a nurse practitioner or CRNA program), social work, PT, or OT, this directly affects how you'll finance your education starting this fall. Talk to your program's financial aid office now about expected costs versus the new caps, and start researching private loan options and co-signer availability early. Watch the litigation, but plan as if the caps will take effect July 1.
4. New FAFSA Identity Verification Adds Friction As Completion Hits Record
Even as the Class of 2026 set an all-time FAFSA completion record (54.7% as of May 1, per NCAN), the rollout of a new identity-verification step is adding friction for some filers.
The Department of Education launched the new anti-fraud tool earlier this spring as part of its push to crack down on FAFSA fraud, and some students are encountering an extra verification step while completing the form.
Financial aid experts have also flagged that aid appeals are taking longer at some institutions — Northeastern, for example, warned admitted students that appeals could take up to eight weeks to process.
➡️ Impact: If you or your student still need to complete or correct a FAFSA, build in extra time for the identity-verification step — don't wait. And if you're appealing a financial aid award, submit as early as possible, since processing times are running long at many schools.
Filing early remains the single most reliable way to maximize aid, since campus-based funds like Work Study and FSEOG are limited and run out.
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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.