Education Department Student Loans: More smoke and mirrors?

Alright, so the geniuses in Washington think they've "fixed" the student loan crisis. Let's be real for a second... Give me a break. This whole thing smells like another round of political theater designed to make them look busy while kicking the can further down the road.

Capping the Damage? Or Just Shifting the Burden?

The Education Department's patting itself on the back for these "sweeping reforms" under the One Big Beautiful Bill Act (OBBBA). The RISE Committee—sounds like a bad superhero team-up, doesn't it?—supposedly came to a "consensus" to simplify repayment, cap borrowing, and hold colleges accountable.

Accountable? Seriously?

They're bragging about killing the Grad PLUS program, which, yeah, was basically a blank check for grad students to drown themselves in debt. And capping Parent PLUS loans. Okay, fine. But let's not pretend this is some revolutionary act of fiscal responsibility. It's damage control, plain and simple.

Under Secretary of Education Nicholas Kent called the reforms "transformative." Oh, please. It's transformative like putting a new coat of paint on a condemned building. Sure, it looks nicer for a minute, but the foundation's still crumbling. "Borrowers will no longer be pushed into insurmountable debt to finance degrees that do not pay off," he says.

That's the sales pitch, anyway.

But what about the universities raking in billions while churning out graduates with worthless degrees? Are they really being held accountable? Or are they just going to jack up tuition even more and blame the government? My money's on the latter, offcourse.

And this "Repayment Assistance Plan (RAP)"? Sounds suspiciously like another income-driven repayment scheme that'll keep people chained to their debt for decades. After 20 to 30 years, the debt is forgiven—but you might have to pay income tax on it as of 2026. So, basically, you get screwed twice.

"Collaborative Approach"? More Like Bureaucratic Mumbo Jumbo

The Department claims this was a "careful, collaborative policy-making process" mandated by the Higher Education Act. Public input, stakeholder engagement… blah, blah, blah.

They held a "virtual public hearing" on August 7, 2025, to get feedback. A virtual hearing. Let me translate: A carefully controlled online echo chamber where they can pretend to listen to the public while ignoring anything that doesn't fit their agenda.

The article says that the Department refined its proposed regulations in over a dozen areas, "reflecting a careful, collaborative policy-making process." Really? Or did they just tweak a few minor details to make it look like they were listening?

I mean, come on. Since when has the government ever been truly responsive to the needs of ordinary people?

And now they're drafting a "Notice of Proposed Rulemaking (NPRM)" for the Federal Register. More paperwork, more bureaucracy, more opportunities for lobbyists and special interests to water down any meaningful reforms.

Speaking of paperwork, I still haven't gotten that refund from the IRS for that deduction I filed three years ago. Where's my repayment assistance plan, huh?

Trump's "Illegal Purpose" Nonsense

Oh, and let's not forget Trump's little parting gift: limiting loan forgiveness for people working at nonprofits with a "substantial illegal purpose." Which, apparently, includes organizations that help immigrants and transgender youth.

Give me a break. This is just blatant political targeting disguised as fiscal responsibility.

According to Amy Lieberman, education editor at The Conversation U.S., this could make it harder for organizations that help vulnerable communities to attract and retain staff. No kidding. It's a deliberate attempt to undermine the very people who are trying to make a difference in the world.

The administration released new rules on Oct. 30 that will exclude borrowers from receiving new public service loan forgiveness credit if their employers are found to have a “substantial illegal purpose.” This includes organizations that provide support for undocumented immigrants, children who seek medical gender transitions, or for speech the administration deems to support terrorist, violent or discriminatory ideas. What to know about Trump’s changes to student loan forgiveness rules

What a load of garbage.

Honestly, I'm starting to wonder if I'm the crazy one here. Maybe I'm just too cynical. Maybe these reforms really will make a difference.

Nah. Who am I kidding?

So, What's the Real Story?

It's all smoke and mirrors. They're rearranging the deck chairs on the Titanic while the iceberg looms closer. The student loan crisis isn't going to be solved by tinkering around the edges. It needs a complete overhaul of the entire higher education system. And let's be real, ain't nobody in Washington got the guts to do that.