A new student loan repayment plan is expected to help thousands of borrowers cut their monthly payments by half. More than four million student loan borrowers, including 142,000 in Illinois, are now enrolled in the Biden-Harris administration's new "Saving on A Valuable Education" or SAVE loan repayment plan.

Robert Farrington, founder of the financial media company The College Investor, said the new plan puts the borrower's annual income into a formula - using 225% of their state's poverty level as a guideline for payments.

"So, your monthly student loan payment is going to be calculated based on your discretionary income. What this means for borrowers is those with low income, and those with larger families, will see lower payments," Farrington explained. "And some people could see payments as low as zero dollars per month."

President Joe Biden campaigned on reducing student debt, but in June the U.S. Supreme Court struck down a plan to forgive between $10,000 and $20,000 for borrowers making less than $125,000 dollars per year. Republicans invoked the Congressional Review Act to block the SAVE program, claiming it puts a burden on people who did not attend college or already paid back their loans.

Under the SAVE program, people earning $15 an hour or less will not pay anything, and all others are expected to save at least $1,000 a year. Farrington added no previous income-driven repayment plan has offered payments as low as %5 of a borrower's discretionary income.

"The current plans - such as Income Based Repayment, and Pay As You Earn - are either 10 or 15% of your discretionary income," he said. "So, that's what makes this new SAVE plan such a great deal. It could literally cut your payment in half."

Illinois does not have any loan payment programs to help students, but there are scholarship programs for those who plan to work in public service jobs such as teaching, nursing or as first responders. The SAVE plan was released in July, and Farrington added many more Illinoisans are eligible to sign up.

"Student loan repayments are just starting right now and there's a lot of information coming at borrowers," he continued. "And so, digesting it all, figuring out the best course of action, is very hard. That's really the key issue is, let's get the message out so that we can help borrowers save money every month."

Illinois high school seniors have new hurdles to overcome to get to college. High school students are waiting several extra weeks to get their hands on a newly designed Free Application for Student Aid. You might know it better as FAFSA.

The delay in the current process puts students behind when applying for financial aid.

Tabitha Jackson, senior seminar instructor for CICS Longwood High School, works with seniors at the charter school in Chicago. She said FAFSA has always been an Achilles heel, but the delay -- combined with the U.S. Supreme Court's decision to repeal affirmative action -- has further exacerbated the process.

"It's so frustrating and it's so hurtful to let a student know, 'Because of who I am, I may not have some additional support or some additional support benefits of being able to go to this school,'" she said. "My question is to my students: 'If affirmative action stops at this level, what's next?'"

Jackson added a lot of students don't want debt, and financial aid helps determine which college they can afford. The 2024-25 FAFSA form is expected to be available by the end of 2023.

The cumbersome conditions coincide with a downward trend for high school seniors who are participating in career and college aid counseling.

Doug Keller, partnership lead with San Francisco-based YouthTruth, said its Class of 2022 Survey underscores troubling findings from respondents.

"We found that there's significant declines among particular student groups and their participating in counseling about how to pay for college -- specifically, among Hispanic or Latinx students, multi-racial and multi-ethnic students and boys," he explained.

Keller said the largest gap is among American Indian, Alaskan and other Indigenous students, with a 14% gap between those who want to go to college and those who expect to attend.


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A program giving high school students a taste of college and college credits along the way is celebrating its 33rd year of operation in Washington state.

The Running Start program offers 11th and 12th graders an opportunity to take college courses at the state's 34 community and technical colleges and three of its universities.

Julie Garver, director of policy and academic affairs for the Washington State Council of Presidents, which represents universities, said the program eases the transition to college-level learning.

"By being able to explore those things within high school, which is a safer environment or within those contexts, then students are able not only to get the confidence but to get those skills," Garver outlined. "They are not surprised and learning that transition while they're also taking college courses when they're at one of our campuses."

More than 27,000 high school students were enrolled in Running Start at community and technical colleges in the past academic year.

Jamie Traugott, director of dual credit and strategic enrollment initiatives for the State Board for Community and Technical Colleges, said students in the program report feeling better prepared for the next step in their academic careers.

"The confidence of being able to complete a college-level class, but then really to be like, 'OK, I did this. What else can I get involved with?'" Traugott noted. "Or, 'Maybe, I thought I would go to a community technical college, but I never considered that I could also transfer to a four-year institution.'"

Traugott added the program has been helpful for the students who are able to access it but there is still more work to do to close equity gaps in enrollment.

Support for this reporting was provided by Lumina Foundation.


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Degrees and credentials after high school will become increasingly important in the job market, a new report found.

Analysis from the Georgetown University Center on Education and the Workforce showed 72% of jobs will require postsecondary education or training by 2031. Oregon ranks 11th for most jobs requiring additional education.

Nicole Smith, chief economist at the center and a co-author of the report, said there could be a skills shortage in the market if the U.S. does not prepare.

"Some of the concern we have is that we're not producing enough people with the credentials, education, the skills, the training that we need for those jobs that will appear in the future," Smith explained.

Between 2021 and 2031, the report found an average of 238,000 jobs will become available annually in Oregon. It said 168,000 of those openings will be for workers with postsecondary training of some sort.

Smith emphasized the window is closing for workers who only have a high school degree and opportunities need to be set up to ensure they can get further education.

"Those that don't have the key to the future -- and that key is a postsecondary vocational certificate, certification, some type of credential beyond high school -- if you don't have that key, you run the risk of being left behind," Smith stressed.

Smith added greater education will not only be important for people who just have high school degrees.

"Even if you're standing in a particular type of job, if you want to move forward, you want to advance, you want to get to be the manager in that profession, you want to get to be the team leader, a lot more education and training is required in order for you to advance to that level," Smith pointed out.

Support for this reporting was provided by Lumina Foundation.


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