Colleges and student loan borrowers face another week of federal rule changes, proposed legislation and new college affordability initiatives.
Here’s a quick look at the most important stories shaping higher education and student personal finance on October 31, 2025.
🎓 Top headlines at a glance
- The Department of Education is finalizing new public service loan forgiveness rules.
- Senators Warner and Kaine have introduced a bill to temporarily pause student loans during the government shutdown.
- Student loan forgiveness processing continues despite the government shutdown.
- Colgate University Expands Free Tuition Financial Aid Program.
Colgate University Admissions Office.
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1. Department of Education finalizes new PSLF rule
The U.S. Department of Education has issued a final rule revising the Public Service Loan Forgiveness (PSLF) program. The rule changes the definition of a qualified employer to prevent any employer from engaging in any conduct deemed to have a “substantial unlawful purpose.” Officials have said the goal is to ensure the program’s long-term stability while protecting taxpayer money, but critics warn the definitions are broad and political.
➡️ impact: The change is expected to disqualify approximately 10 employers annually, according to the Department of Education. Lawsuits challenging the rule have already been announced.
2. Senators Warner and Kaine propose pausing student loans during lockdowns
Senators Mark Warner (D-Va.) and Tim Kaine (D-Va.) introduced the proposal. Closing Student Loans Federal Reserve Actwhich will automatically stop payments and benefits accruing to federal workers, contractors and military personnel during any government shutdown. This measure aims to prevent financial pressure on public sector employees affected by delayed wages.
➡️ impact: If enacted, the pause would work similarly to pandemic-era relief, protecting nearly 2 million workers from missed payments or late payments during future funding interruptions.
3. Loan forgiveness approvals are still moving forward
Despite the ongoing federal government shutdown, the The Department of Education continues to approve student loan forgiveness applications For borrowers who qualify under income-based repayment and PSLF programs. Officials confirmed that current employees and contractors are processing the layoffs, though it’s unclear how many employees are working and what is actually being processed.
➡️ impact: Borrowers approaching forgiveness limits may feel helped, but communication delays and limited staff capacity may slow down final processing.
4.Colgate University Expands Free Tuition Financial Aid Program
Colgate University announced Significant expansion of the Colgate Commitment Initiative. Beginning fall 2026, students from families earning up to $175,000 a year will have tuition-free, and students from families earning up to $200,000 will have demonstrated their needs are met without loans. Colgate is the #3 most expensive college in the United States in terms of tuition.
➡️ impact: The move places Colgate among a small group of private universities that offer middle-income families a path to admission without borrowing, reflecting a growing push toward debt-free models.
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Editor: Colin Greaves
The post This Week in College and Money News: October 31, 2025 appeared first on The College Investor.
