Hawaii's college and career readiness indicators demonstrate mixed trends
The report, released last week by Hawaii P-20 Partnerships for Education, presents both progress and concerns, tracking key metrics such as graduation rates, standardized testing performance, dual credit participation and college enrollment.
Based on data from the state Department of Education and the University of Hawaii, the report details the outcomes of 11, 613 students across 67 public schools, including public charter schools. Private school students in Hawaii are excluded from the report.
The class of 2024 maintained an on-time graduation rate of 86 %, tying with the class of 2023 for the highest recorded rate. Among the graduates, 34 % earned honors diplomas, marking the highest percentage in five years.
Additionally, Career and Technical Education honors increased to 22 % for the class of 2024 from 15 % for the class of 2020. The proportion of students earning any type of diploma with honors rose to 34 % in 2024 from 29 % in 2020.
CTE programs equip students with skills for workforce entry or further occupational training, and the most common CTE pathways for the class of 2024 were Hospitality, Tourism and Recreation (23 %); Cultural Arts, Media and Entertainment (20 %); and Health Services (17 %), reflecting key industries in Hawaii's economy.
Don 't miss out on what 's happening !
Stay in touch with breaking news, as it happens, conveniently in your email inbox. It 's FREE !
Email 28141 Sign Up By clicking to sign up, you agree to Star-Advertiser 's and Google 's and. This form is protected by reCAPTCHA.
Graduates earning the Seal of Biliteracy—a recognition for proficiency in two or more languages—increased to 598 from 557 for the class of 2023.
Despite gains in some areas, standardized test performance declined. The percentage of students meeting the ACT college readiness benchmark dropped in English—36 % in 2024 from 41 % in 2022 ; mathematics—16 % from 21 %; and science—17 % from 22 %. Participation in the Smarter Balanced Assessments for English Language Arts and Math also decreased.
However, improvements were observed in Advanced Placement and Dual Credit participation.
The proportion of students scoring three or higher on an AP exam rose to 18 %, the highest in five years. Dual Credit course completion increased to 27 % from 24 % within a year, with a corresponding 3 % rise in students entering UH with college-level English and math credits earned in high school.
Hawaii's overall nationwide college enrollment rate for the class of 2024 increased slightly to 52 % from 51 %. The share of graduates enrolling at a UH campus grew to 34 % from 31 %, with UH two-year campus enrollment reaching 19 %—the highest level since 2020.
'The increase in college enrollment at the UH Community Colleges highlights the growing impact of our strengthened career pathways between HIDOE high schools and our seven community college campuses, ' said Della Teraoka, interim vice president for the UHCCs. 'With UH two-year enrollment on the rise and four-year enrollment reaching record levels, these collaborative efforts are creating more opportunities for students to pursue higher education and succeed right here at home.'
Some Hawaii high schools saw improvements in key areas, like Keaau High School, which recorded increases in AP and Dual Credit participation.
The percentage of students scoring three or higher on AP exams rose to 21 % from 9 %, while Dual Credit participation grew to 22 % from 10 %. The number of CTE concentrators at Keaau increased to 58 % from 55 %.
Keaau students also showed gains in college-level coursework, with enrollment in college-level math rising to 47 % from 43 % and college-level English increasing to 49 % from 40 %.
'Our students have made great strides in a variety of areas in a short amount of time, ' Dean Cevallos, principal of Keaau High School, said in a statement. 'With the expansion of pathways and programs of study across the state, and particularly on Hawaii Island, it is exciting to see our students excel in courses that earn them college credit and continue through the pipeline and attend UH campuses.'
The CCRI report is produced annually by Hawaii P-20 Partnerships for Education, in collaboration with the state Department of Education and UH. It provides key insights into how Hawaii's high school graduates transition into higher education and careers.
'We're seeing the results of our efforts to expand access to rigorous coursework, career pathways and college opportunities across all schools, ' state schools Superintendent Keith Haya shi said. 'These outcomes demonstrate what's possible when we align K-12 education with students' futures. At the same time, we recognize the ongoing challenges in academic readiness and are continuing to invest in early interventions, targeted support and aligned pathways to ensure students are prepared for success after high school.'
While some indicators show improvement, concerns about academic readiness, particularly in mathematics, persist.
'Although college-going data from the Class of 2024 demonstrates a turnaround from previous years, there are reasons for concern with academic readiness, especially in math, ' Executive Director of Hawaii P-20 Stephen Schatz said. 'Math readiness is key across various industries, whether students aspire to be doctors, welders, auto mechanics, nurses, or teachers.'
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Time Business News
17 hours ago
- Time Business News
SparkPress Fusion Platform: Digital Success Made Simple
Running a business online feels hard. You need websites. You need social media. You need email lists. Most people use ten different apps. This costs too much money. It takes too much time. changes everything. One website does it all. Small business owners waste hours every day. They copy information between apps. They forget passwords. They pay for tools they barely use. This platform fixes these problems. Everything lives in one place. You log in once. You get all your work done faster. The internet moves fast. New tools come out every month. Old tools stop working. Keeping up is exhausting. stays current. They add new features before you need them. You focus on your business. They handle the tech stuff. Learn more about how this platform helps small businesses stay competitive. Why Most Online Tools Fail Small Businesses Traditional business software was made for big companies. They have IT departments. They have training budgets. Small businesses are different. understands this problem. Big software companies sell separate tools for everything. Website builder here. Email tool there. Social media scheduler somewhere else. Each tool costs money every month. Most small businesses can't afford this approach. Learning new software takes weeks. Most business owners don't have time for training. They need tools that work right away. takes minutes to learn. The buttons make sense. The help is written in plain English. Updates break things in most software. You learn how something works. Next month it changes. updates don't break your workflow. New features add to what you know. Nothing disappears without warning. Support for small businesses is usually terrible. You get robot answers. You wait on hold for hours. treats every customer like they matter. Real people give real help fast. Core Features That Actually Matter Most platforms brag about having hundreds of features. focuses on the ones you actually use. Website building comes first. Every business needs a good website. The builder is simple but powerful. Creating content takes most of your time. The platform helps with this too. Templates speed up design work. Stock photos save money. Writing tools check your grammar. Everything looks professional without hiring designers. Email marketing still works better than social media for sales. The built-in email tools connect with your website. New visitors join your list automatically. You send newsletters without switching apps. Sales happen while you sleep. Social media posting happens from the same dashboard. Write once. Post everywhere. Schedule weeks of content in advance. The platform picks the best times to post. Your followers see more. You work less. Smart Analytics That Make Sense Numbers matter in business. Most analytics tools show too much information. shows what you need to know. Which pages get visitors? What content makes sales? Where do customers come from? The reports use simple charts. No math degree needed. Green means good. Red means fix this. Yellow means watch closely. You make better decisions with clear information. You can track specific goals too. Want more email signups? Set that as a goal. The platform shows how close you are. It suggests ways to improve. Your business grows faster with clear targets. Team Collaboration Without Headaches Working alone is hard. Working with a team can be harder. makes teamwork simple. Everyone sees the same information. Changes happen instantly. No more version confusion. You control who sees what. Give writers access to blog posts. Let designers work on graphics. Keep financial information private. Permissions change as people's jobs change. Comments and notes attach to specific projects. Feedback stays organized. Nothing gets lost in email chains. Team members know exactly what needs fixing. Projects finish faster with clear communication. Getting Started Without Tech Skills Most people think they need computer skills for online business. proves this wrong. The setup wizard asks simple questions. Your website appears in minutes. No coding knowledge required. Templates handle the hard design work. Pick one that fits your business. Change colors and text. Add your photos. Upload your logo. Everything looks custom-made. Visitors think you hired professionals. The platform imports information from other tools you already use. Connect your existing email list. Link your social media accounts. Bring over your customer database. Nothing starts from zero. Mistakes don't break anything. Try different designs. Test new features. The platform saves everything automatically. Go back to earlier versions if needed. Learning becomes fun instead of scary. Real Stories from Real Users Sarah runs a bakery in Texas. She used to spend five hours a week updating her website. Now it takes thirty minutes. imports her daily specials automatically. Customers order online. Sales doubled in three months. Mike teaches guitar lessons. He struggled with scheduling and payments. The platform handles both now. Students book lessons online. Payments happen automatically. Mike teaches more. He worries less about business tasks. Jennifer sells handmade jewelry. She posts on Instagram, Facebook, and Pinterest every day. This used to take two hours. Now she schedules a week's worth of posts in twenty minutes. More time for creating. Same social media results. Small Business Success Metrics Businesses using see real improvements. Website visitors increase by 40% on average. Email list growth speeds up by 60%. Social media engagement doubles. These aren't promises. These are actual results from real users. Customer service requests drop by half. The platform answers common questions automatically. Contact forms organize inquiries by type. Important messages get attention first. Less busy work means more time for important tasks. Advanced Features for Growing Businesses Starting simple doesn't mean staying simple forever. grows with your business. Advanced features unlock as you need them. No need to switch platforms later. Everything you built stays safe. Online stores integrate seamlessly. Start with service bookings. Add product sales later. Inventory tracking happens automatically. Payment processing is secure. Customers trust the buying experience. Email sequences run automatically. New customers get welcome messages. Inactive customers get special offers. Birthday discounts send themselves. Personal touches happen without personal work. Custom forms collect specific information. Survey customers about new products. Gather feedback on services. Build detailed customer profiles. Better information leads to better business decisions. Automation That Actually Helps Automation scares some business owners. They think it makes businesses feel robotic. automation feels personal. Customers get relevant messages at the right time. Personal attention scales to hundreds of customers. Social media automation posts when your audience is online. Different time zones get different schedules. Holiday posts prepare weeks in advance. Trending topics get covered automatically. Your brand stays active even when you're busy. Customer follow-up happens consistently. Thank you messages after purchases. Check-in emails after services. Review requests at the perfect time. Good customer service becomes automatic. Happy customers tell their friends. Mobile-First Design Philosophy Most website platforms think mobile is extra. puts mobile first. Your website looks better on phones than computers. This matters because most visitors use phones now. The platform itself works great on mobile too. Update your website from anywhere. Respond to customer messages instantly. Check your analytics on the bus. Business doesn't stop when you leave the office. Touch controls feel natural. Buttons are big enough for fingers. Text is readable without zooming. Navigation makes sense on small screens. Your customers have a better experience. Better experience means more sales. App-like features work in web browsers. Push notifications for important updates. Offline access to key information. Fast loading even with slow internet. Modern features without app store approvals. Pricing That Makes Business Sense pricing scales with your success. Start small and cheap. Pay more only when you're making more money. This approach reduces risk for new businesses. Success becomes affordable. No hidden fees surprise you later. The price you see is what you pay. Setup is free. Training is included. Support doesn't cost extra. Budget planning becomes simple and predictable. Compare costs to buying separate tools. Website builder: $20 monthly. Email platform: $30 monthly. Social media scheduler: $15 monthly. Analytics: $25 monthly. does all this for less than half the price. Annual plans save even more money. Pay for ten months. Get twelve months of service. Cash flow improves when expenses are predictable. Growing businesses need every advantage they can get. Return on Investment Reality Most business tools promise huge returns. focuses on real savings. Time savings convert to money. One hour saved daily equals $10,000 yearly for most businesses. The platform saves much more than one hour daily. Mistake prevention saves money too. Automated backups prevent data loss. Security features stop hacker problems. Update notifications prevent website breaks. Prevention costs less than fixing problems later. Customer retention improves with better service. Happy customers buy more often. They refer new customers. They leave good reviews. Platform features directly improve customer relationships. Better relationships mean higher profits. Security Without Complexity Online security sounds complicated. handles complexity behind the scenes. Your part is simple. Their part is bulletproof. Hackers can't access your information. Customers trust your website. Automatic updates fix security holes. You don't need to remember patches. The platform stays current with threats. Security experts monitor everything. Sleep better knowing professionals protect your business. Backup systems work invisibly. Multiple copies exist automatically. Geographic separation prevents natural disasters from causing data loss. Recovery takes minutes, not days. Business continuity plans become unnecessary. Compliance happens automatically too. GDPR rules are followed. Privacy policies update as laws change. Payment security meets banking standards. Your business stays legal without hiring lawyers. Data Protection Standards Customer information gets maximum protection. Credit cards never store on the platform. Personal data encrypts during storage and transmission. Access logs track every interaction. Suspicious activity triggers immediate alerts. You control data sharing completely. Choose which services integrate. Approve every connection manually. Revoke access instantly if needed. Your data belongs to you, not the platform. Regular security audits happen quarterly. Independent experts test everything. Results get published transparently. Problems get fixed immediately. Accountability builds trust with customers and partners. Integration Ecosystem plays well with other tools. Popular services connect easily. Accounting software synchronizes automatically. CRM systems share customer data. Inventory management updates in real-time. API access lets programmers build custom connections. Unusual business needs get custom solutions. Legacy systems integrate with modern features. Technology investments stay valuable longer. Webhook support enables instant updates. New orders trigger fulfillment processes. Customer changes update multiple systems. Real-time synchronization prevents errors. Business processes become seamless and efficient. Import wizards handle platform switches. Bring data from competitors easily. Nothing gets lost in translation. Setup time reduces from weeks to hours. Switching platforms becomes low-risk and straightforward. Future-Proofing Your Business Technology changes fast. Platforms die unexpectedly. invests in long-term stability. Your business website won't disappear. Years of work stay protected. Growth plans remain valid. Regular feature updates keep you current. New social media networks integrate quickly. Payment methods add as they become popular. Design trends update automatically. Your business looks modern without redesign work. Data export works anytime. Download everything if you ever leave. Standard formats work with other tools. No vendor lock-in means real freedom. Make platform decisions based on features, not fear. The development team shares their roadmap publicly. See what's coming next quarter. Request features for your industry. Vote on development priorities. Users influence platform direction. Your needs drive development focus. Key Takeaways • combines many business tools into one affordable platform • Simple design means fast learning and immediate productivity gains • Mobile-first approach serves customers better than desktop-only solutions • Automation features save hours daily while improving customer experience • Security handles itself automatically while meeting all compliance requirements • Integration capabilities preserve existing tool investments and workflows • Pricing scales with business growth to minimize risk and maximize value • Real user success stories prove measurable business improvements are normal Frequently Asked Questions Q: How long does setup take? A: Most businesses go live within 24 hours. Simple businesses finish in 2-3 hours. Complex setups might take a few days. Q: Can I import my existing website? A: Yes, the import wizard handles most website types. Some custom features might need manual recreation. Q: What happens if I get too much traffic? A: The platform scales automatically. No crashes or slowdowns during traffic spikes. You only pay for what you use. Q: Do I own my data? A: Completely. Download everything anytime. Delete your account removes all traces. No hidden data retention policies. Q: How good is phone support? A: Live chat during business hours responds in under 5 minutes. Phone support available for urgent issues. Email support answers within 4 hours. Q: Can I test everything before paying? A: Full 14-day free trial includes all features. No credit card required to start. Cancel anytime without charges. Q: What if my business needs custom features? A: Development team builds custom solutions for growing accounts. Enterprise features available for larger businesses. Conclusion simplifies online business success. One platform replaces multiple expensive tools. Learning time reduces from weeks to hours. Business operations become more efficient and profitable. Small businesses compete with larger companies using the same tools. Customer service improves through automation. Marketing reaches more people with less effort. Growth happens faster with better tools. The platform adapts as businesses change. Additional features unlock when needed. Data transfers easily if requirements change. Investment protection comes through flexible scaling and standard data formats. Success stories from real users prove the platform delivers results. Website traffic increases. Customer satisfaction improves. Business profits grow. These outcomes justify the investment through measurable returns and operational improvements. TIME BUSINESS NEWS
Business Wire
a day ago
- Business Wire
BAC Applauds Landmark Passage of Trigger Lead Ban
WASHINGTON--(BUSINESS WIRE)--The Broker Action Coalition (BAC) welcomes the passage of the Homebuyers Privacy Protection Act, bipartisan legislation that limits the sale of trigger leads. With the Senate passing the House version on August 2, the bill has officially cleared Congress and now heads to the President's desk. The BAC urges President Trump to sign the bill into law without delay. 'This victory shows what's possible when brokers get involved, stay organized, and invest in advocacy.' Brendan McKay, Chief Advocacy Officer and Co-Founder of the BAC Share The passage of this bill through Congress marks the culmination of a multi-year advocacy effort—driven by the BAC, its advocates, and coalition partners. Led by the Mortgage Bankers Association (MBA), this united effort aimed to ban abusive trigger lead practices and curb the sale of consumer data without consent. This legislative victory would not have been possible without the leadership of Representatives John Rose (R-TN) and Ritchie Torres (D-NY) and Senators Jack Reed (D-RI) and Bill Hagerty (R-TN). Why Brokers Fought to End Trigger Leads When a consumer applies for a mortgage and their credit is pulled, credit bureaus sell that data as 'trigger leads'—including personal details like full name, contact information, and credit score range. Solicitors buy these leads and unleash a barrage of calls, texts, and emails, overwhelming homebuyers at a critical point in the process. All of this is done without the consumer's permission or proper disclosure. Some solicitors blur compliance boundaries, using deceptive language to imply connections with brokers or lenders. In addition to violating basic data privacy expectations, these tactics erode consumer trust and have been especially harmful to first-time homebuyers, non-native English speakers, and other vulnerable borrowers. The Homebuyers Privacy Protection Act ends these abusive practices while preserving narrow exceptions for pre-existing relationships and giving consumers the power to opt in. Thank You to the Partners Who Powered the Push Advocacy at this level doesn't happen alone. It takes investment, commitment, and shared belief in what's possible. The BAC is proud to recognize the partners that helped make this win possible: Equity Prime Mortgage (EPM), Pennymac TPO, The Loan Store, Inc., Rocket Pro, Paramount Residential Mortgage Group, Inc. (PRMG), Freedom Mortgage Wholesale Division, Newfi Wholesale, Gold Star Wholesale, and West Capital Lending. These partners stood alongside brokers and homebuyers to champion stronger consumer protections and real industry change. Continued Commitment to Homebuyer & Broker Interests 'The BAC was built to channel broker priorities into real policy wins. When we launched, we asked our earliest supporters to help set the agenda. The response was overwhelmingly clear: ending abusive trigger leads was our top priority. Today's congressional action delivered on that,' said Brendan McKay, BAC Chief Advocacy Officer and Co-Founder. 'This victory shows what's possible when brokers get involved, stay organized, and invest in advocacy.' 'This is a major win—but it's just the beginning,' added Rachel Clark, BAC Executive Director. 'If you want more of this kind of progress, brokers need to keep showing up—and start funding the fight.' About the Broker Action Coalition The Broker Action Coalition (BAC) is the grassroots advocacy channel uniting mortgage brokers and their supporters to fight for broker and homebuyer rights nationwide. The BAC aims to level the playing field between independent mortgage brokers and retail banks, to support inclusive homebuying policy change, and to fight for the needs of Veterans, minorities, and underserved communities to make the American dream of homeownership possible for more people than ever before. For more information or to support our advocacy efforts, visit
Yahoo
a day ago
- Yahoo
How to determine whether you have federal student loans
Key takeaways You can log into the Federal Student Aid website to identify what type of loans you have. Federal student loans are distributed by the federal government and are serviced by lenders assigned by the Department of Education. Major changes are coming to federal loans starting July 1, 2026, that will limit repayment options for new borrowers. Private student loans are offered by banks, credit unions and online lenders. Between 30 and 40 percent of undergraduate students take out federal student loans each year to help pay for school. Many others turn to private loans or a mix of both. If you're unsure whether your student loans are federal or private, there are a few ways to check. Understanding what type of student loans you have matters more than ever, especially with upcoming changes to federal loan programs that will significantly impact borrowers starting in 2026. 3 Ways to figure out what type of loan you have Try logging into the Federal Student Aid website using your FSA ID to see a list of all federal student loans in your name. On your account dashboard, you can find 'My Loan Servicers' or check the National Student Loan Program System. If you're making payments to a lender that isn't listed, your loan is likely private. Current federal student loan servicers If you're unsure if your loan is federal or private, log into your lender's account — or the place you make your monthly payments. The current federal student loan servicers are: Aidvantage Edfinancial CRI MOHELA ECSI Nelnet There's also a chance you originally had federal student loans through a servicer that no longer works with the federal government. In that case, your loan was moved to a different servicer on this list. Many loans switch hands throughout their lifetimes, so it's not uncommon to have a different servicer now than when you graduated. Verify with your school Your school's financial aid office can help you figure out what types of loans you have. They keep records of all the financial aid you received, including federal and private loans. If you're still enrolled, stop by the financial aid office with your student ID. If you've graduated, call them with your Social Security number, and they should be able to pull up your records and tell you which loans are federal or private. Check your billing statement Look at your monthly loan statement or login to your servicer's website. If you see one of the federal servicers listed above (like Nelnet or MOHELA), that's a good sign you have federal loans. Private loan statements will show bank names like Wells Fargo, Discover, or Sallie Mae. How to tell if your loan is federal If you're still unsure how to tell if your loan is federal, you can check whether it's labeled 'direct' or check your credit report. 'Direct' is in the name of the loan All federal loans will have 'Direct' in their names, like 'Direct Subsidized Loan,' 'Direct PLUS Loan' or 'Direct Consolidation Loan,' for example. For PLUS Loans, you might see specific titles, like 'Parent PLUS Loans.' Older student loan names include Perkins, FFEL, and Stafford. Your credit report states the loan When you check your credit report, it'll list the lender of your student loans. It might say the Department of Education or the lender who manages your loan, which can be any of the ones we listed above. If you have a lender that manages both federal and private student loans – like Nelnet – you may have to call to see which type of loans you have. Money tip: You can get free weekly copies of your credit reports from Federal vs. private student loans: What's the difference? Federal student loans With the passage of the One Big Beautiful Bill (OBBB), major changes are coming to federal student loans starting July 1, 2026. New borrowers will only have two repayment options: the revised standard repayment plan and the new Repayment Assistance Plan (RAP). Current income-driven repayment plans like Pay As You Earn (PAYE) and income-contingent repayment (ICR) will be eliminated by July 1, 2028, leaving only income-based repayment (IBR) as an option for existing borrowers. Keep in mind: Current SAVE plan borrowers should know that interest started accruing again on August 1, 2025. The new RAP plan requires 30 years of payments for loan forgiveness, compared to 20 to 25 years under current plans. Other changes include stricter deferment rules (economic hardship and unemployment no longer qualify) and shorter forbearance limits (reduced from 12 months to 9 months). Graduate PLUS loans will also be eliminated, and new federal loan limits have been put in place. What to know about your evolving federal student loan repayment options If you want to know more about upcoming student loan repayment options, principal loan writer Andrew Pentis breaks it down for you. Learn more Private student loans With the new caps on federal loan amounts and the elimination of graduate PLUS loans, more students may need to turn to private loans to cover funding gaps. This could make private loans more important in the overall student loan landscape, especially for graduate students and those attending expensive schools. Private student loans come from private institutions, like banks, credit unions and online lenders. You can take out private student loans any time during school, but the vast majority of lenders require a credit check. If you don't have a strong enough credit score you may need to ask someone close with good credit to be a cosigner. Once you graduate, both you and your cosigner become responsible for your loans. Interest rates tend to be higher for private loans compared to federal loans if you have little to no credit history, but private lenders offer variable and fixed interest rates. Repayment terms for private loans are shorter – ranging from five to 15 years – which means you'll have larger monthly payments. While shorter terms may mean higher monthly payments, they also mean you'll pay less total interest over the life of the loan compared to stretching payments over a longer period. Federal student loan changes making you eye private lenders? Here are 7 with federal loan-like perks Wondering if private student loans may be better for your situation than federal student loans? Senior loans writer Lauren Nowacki breaks it down for you. Learn more Federal vs. private student loans Key points Federal PrivateInterest ratesFixed, set every year by CongressFixed or variable, set by each lenderWhen you start payingAfter a six-month grace period once you graduate, when you drop below half-time enrollmentWhile still in school, some lenders let you defer until after you graduateCredit checkNot for most loansYes, requirements vary by institutionCredit impactMonthly payments reported to credit bureaus, missed payments hurt your credit scoreMonthly payments reported to credit bureaus, missed payments hurt your credit scoreDeferment, forbearance, forgivenessYes, most let you pause payments if you're facing hardship and can't repay; only federal loans are eligible for forgivenessSome have hardship plans, but they're offered on a case-by-case basis – can't get private loans forgivenRepayment plansSeveral options, including a few based on incomeVaries by institution but most set your payment by how much you borrowed not your current incomeConsolidation, refinancingCan consolidate with the government to combine loans but not lower rates, lose federal benefits if you refinance with private lenderCan refinance with different lenders to potentially get lower rates, no federal benefits to loseLoan limitsAnnual and aggregate limits set by Congress, limits vary by dependency status and year in schoolLimits set by individual lenders based on school costs and your creditworthinessFlexibilityCan't negotiate rates but offers income-driven repayment, autopay discounts, and payment flexibility for inconsistent incomeLimited flexibility once you sign, but you can refinance for better rates if your credit improvesTaxesInterest may be tax-deductible up to $2,500 per year, forgiven amounts may be taxableInterest may be tax-deductible up to $2,500 per year, no forgiveness options Bottom line Knowing what type of loans you have is more important than ever, given the major changes coming to federal loan programs. If you have federal loans, understand that your repayment options will be more limited starting in 2026, and plan accordingly. If you're considering taking out new loans, weigh the trade-offs between federal protections (which are being reduced) and private loan flexibility carefully. Frequently Asked Questions How will the One Big Beautiful Bill Act affect my current federal loans? If you're currently on an income-driven repayment plan, you can stay on it until July 1, 2028. After that, you'll need to switch to IBR (the only surviving plan) or get moved automatically to the new Repayment Assistance Plan (RAP). RAP requires 30 years of payments for forgiveness instead of the current 20 to 25 years, so switching to IBR before the deadline makes sense for most borrowers. What are the new federal loan limits under the One Big Beautiful Bill Act? The act places new caps on federal borrowing, though specific amounts vary by dependency status and year in school. More significantly, graduate PLUS loans will be eliminated entirely, meaning graduate students will have much lower borrowing limits through federal programs. This will likely push more students toward private loans to cover funding gaps. Do federal student loans affect my credit score now? Yes, federal student loans get reported to credit bureaus monthly, just like private loans. This means missed payments will hurt your credit score, but staying current helps build positive credit history. This is a relatively recent change that makes federal and private loans more similar in terms of credit impact. Should I choose private loans over federal loans given all these changes? Federal loans still offer protections that private loans don't, even with the upcoming changes. These include income-driven repayment options, potential loan forgiveness, and more flexible deferment rules. However, private loans may become more attractive for borrowers who don't need these protections and can qualify for competitive rates, especially with the new federal borrowing limits. Sign in to access your portfolio
