Many Arizonans will start making payments on their student loans again next month, so it is time for those borrowers to figure out where they stand financially. Interest resumed this month, after more than three years in which payments were paused during the pandemic. The U.S. Department of Education recently announced millions of borrowers were enrolled in the "Saving on A Valuable Education," or SAVE, an income-driven repayment plan, including more than 87,000 in Arizona.

Robert Farrington, founder of the financial media company The College Investor, said loan payments will be calculated based on a person's W-2 discretionary income.

"They take your income, they run it through a formula and they'll use 225% of your state's poverty guideline to calculate your monthly payment," he explained. "What this means for borrowers is, those with low incomes and those with larger families will see lower payments and some people could see payments as low as $0 per month."

Farrington added almost every borrower can benefit from the 'SAVE' program in the coming years, but added some will need to consolidate their loans or explore other student-loan refinancing options. A majority of borrowers were automatically enrolled in 'SAVE,' according to The U.S. Department of Education.

College debt is not something that solely impacts younger adults. Research from the think tank New America shows the number of people age 60 and older still repaying student loans has multiplied by six since 2004, with their outstanding debt increasing 19 times over.

Brian Walsh, senior manager of financial planning with the online personal-finance company SoFi, said older adults might have borrowed money for themselves or their children's college, and added if the loan is for their own education, they could qualify for SAVE.

"What we try to focus as much as possible on is getting those student loans paid off as quickly as we can, because when it comes to retirement planning, the higher your expenses are, the more money you have to have saved up and the riskier it makes your retirement," Walsh explained.

Older borrowers whose loans were taken out to help with their kids' education do not qualify for the SAVE program. The New America research indicates about 3.5 million people over 60 owe more than $125 billion in student loans.


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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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