Financial Literacy and Issue of Borrowing for College Under the “Big Beautiful Bill”

• In Event: Sociology of Education Section Roundtables
  In Refereed Roundtable (60 minute): Table 9. Higher Education Financial Policy

Abstract

Post-COVID and current government policy changes to student debt repayment and options for repayment, create an economic arena in which students’ debt has continued relevance for students pursuing their degrees at institutions of higher education. These include changes made to borrowers’ repayment situations and options via the post-COVID “on ramp” to repayment signed on June 30, 2023, and the “Big Beautiful Bill,” which makes changes to repayment options that will go into effect in July 2026. Both have the potential to increase the likelihood of borrowers’ defaulting on their student loans, now and in the future. This is particularly relevant for low-income and minority students who have fewer resources and safety nets to buffer the effects of these policies.

Author

• Jennifer L Knudsen, Delta State University