The SORT — June 1: Workforce Pell Opens in July
Starting July 1, the rules for both earning financial aid and repaying student loans are changing — here are the two big moves worth knowing now.
New Workforce Pell Grants Fund Short-Term Career Training Starting July 1
The U.S. Department of Education published a final rule on May 19 allowing Pell Grants to cover short-term workforce programs as brief as eight weeks. Eligible programs — 150 to 599 clock hours — must show strong completion rates, job placement, and graduate earnings that justify the cost. The Department estimates nearly 200,000 students will receive Workforce Pell aid in the program's first year.
Why it matters: Students pursuing a quick, in-demand credential in healthcare, trades, or tech may now use federal grant money — not loans — for programs that were never Pell-eligible before.
Source: U.S. Department of Education
RAP Loan Plan Launches July 1; 7.5M SAVE Borrowers Must Switch
The Repayment Assistance Plan (RAP), created under the One Big Beautiful Bill Act, becomes available July 1. Payments range from 1% to 10% of a borrower's adjusted gross income, with a $10-per-month floor; loans are forgiven after 30 years. On that same date, the Education Department will begin sending 90-day deadline notices to 7.5 million borrowers still enrolled in the now-unlawful SAVE plan, directing them to choose a legal repayment plan.
Why it matters: If you or a parent are on SAVE, watch for that notice — borrowers who miss the 90-day window are automatically moved to standard repayment, which can sharply raise monthly payments.
Source: CNBC
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