Student Loan Updates for December 2025

Student Loan Stocking Stuffers

As we wrap up 2025 and settle into the season of last-minute shopping and sharing opinions about what qualifies as a Christmas movie (yes, Die Hard counts), we’re bringing you one more bundle of student-loan updates to round out the year. December has delivered plenty of headlines: from the official end of SAVE to new debates over borrowing limits, federal shake-ups, and even whispers about selling off parts of the national loan portfolio. Think of this issue as your set of “student loan stocking stuffers” full of practical insights and myth-busting context. As always, our goal is to cut through the noise and help you make smart, informed decisions about your debt.

The End of SAVE

The Department of Education and the Attorney General of the State of Missouri came to a resolution in the ongoing SAVE litigation. As we’ve been speculating, the Department of Education and the court system have indeed been coordinating behind the scenes to ensure that the final ruling on the SAVE plan comes with some complementary guidance from the Department of Education to avoid complete chaos for the more than seven million borrowers currently enrolled. We’ve written a dedicated article to cover this major development in full detail. Click this link to get the facts and see how the SAVE decision will impact you.

What is a “Professional” Degree Program and Why it Matters?

Last month, we briefly shared a reference showing the new list of degree programs which would fall under the “professional” category, allowing them to borrow $50,000 vs. $20,500 annually under the new loan limits. We had no idea this was going to become such a hot topic in the news. Many groups and outlets are spinning this story, making claims that the administration does not consider nurses to be “professionals” and basically does not value them. The noise was so severe, that the Department of Education was compelled to release a “Myth vs. Fact” tutorial justifying their decisions to reassure people they don’t hate nurses.

This is unfortunate, because legitimate concerns are getting drowned out by rhetoric. On one hand, the decision makers mostly followed the existing standards to identify and clarify which programs qualify for higher loan amounts, so I do not think there was any ill intent. On the other hand, these changes will have a huge impact, primarily on those who qualify for PSLF.

The stakes are higher than ever because any borrowing needs not covered by Federal loans must be filled with private or institutional loans. These loans will likely have higher interest rates and no opportunity for Income Driven Repayment, PSLF or other forgiveness programs. So, while I understand the frustration, I want to explain that certain programs (mostly doctorate-level) have always been designated as “professional,” which allowed them to borrow more unsubsidized loans than masters-level. Practically every graduate health student, doctors and nurses, are impacted by these new loan limits.

$1.6T in Student Loan Debt on Sale?

Apparently, borrowers are not the only ones burdened by student debt. The Trump administration is publicly floating the idea of selling off a substantial portion on the nation’s $1.6T student loan portfolio to private lenders. For those who understand debt portfolios, this idea actually sounds very sensible. After all, mortgages and private student loans are sold all the time. And while the Department of Education does have the authority to sell Direct loans, there are some very unique strings attached.

First, regulations specifically state a sale must not “result in any cost to the Federal Government.” In everyday terms, this means the sale price to private buyers must at least match the present value of what the government expects to collect over the lifetime of those loans (interest plus principal), after accounting for borrowing and servicing costs. Considering the current default rate on these loans, it’s hard to imagine any buyer stepping up to pay what these portfolios are worth on paper.

Second, Federal loans have unique obligations to borrowers such as IDR plans, forgiveness opportunities, and forbearances. While the logistics to still offer these benefits after a sale could be sorted out, a private lender might not be willing to make the investment in servicing that is needed to properly support these programs.

While it’s an interesting concept, I honestly don’t see this happening.

The Breakup of the Department of Education

The Department of Education released a memo back on November 18th which self-proclaims the “Break Up Federal Bureaucracy”, referring to the Department of Education. This should be no surprise to anyone. President Trump campaigned on this and started discussing it immediately upon taking office. Half of the Department of Education and FSA staff have already been let go. We won’t get into the weeds with this, but I will point out one glaring omission: we still don’t have clarity on which department or agency would assume responsibility over student lending or loan repayment. If and when we get more intel, we’ll let you know.

Quick Refi Update

We know many of you are ready to refinance, find a lower interest rate, and start paying down your debt. But the interest rates just haven’t been compelling enough for some. Luckily, the Fed just announced they are lowering rates again this week, which should cause a domino effect with lenders to also lower their rates across the board. We think this latest drop will be enough to get many of you finally across the finish line to lock in meaningful savings. We encourage everyone to check back with your Student Loan Professor advisor to pull fresh offers. Or, if you haven’t worked with us to explore your refinancing potential, you can schedule a free appointment here.

Our New Look, and Why It’s Important

You may have noticed we changed our logo and website colors this month. There is a meaning behind this facelift. When we started Student Loan Professor (formerly Doctors Without Quarters) over ten years ago, we knew we needed a strong financial advisory partner who could provide our clients (graduate health professionals) with best-in-class financial services beyond student loans. This was particularly important for physicians and dentists whose financial needs can be quite complex. We found a true partner in Larson Financial, who already had a great reputation in the industry. We approached them with our student loan skillset, and the rest is history.

The Larson family of companies has grown substantially since our early days. From Larson Capital Management specializing in alternative investments, to Physicians Thrive who handle contract reviews and salary negotiations. Larson Financial Holdings has over ten different brands under their umbrella, including Student Loan Professor.

And we’re proud to partner with them, as they truly are a one-stop shop for financial advice and services. That’s where the flame comes in. The Larson flame is a symbol of lighting the way by offering direction, support, and a clearer path forward through complex financial decisions. Because we’re part of the Larson family of companies, we chose to incorporate that flame into our logo as well. Regarding the changes to the color scheme, however, that decision was just vanity. The yellow flame totally clashed with our orange and pink colors, and that just wouldn’t do!

Let us know if you would ever like to connect with a Larson professional to discuss your financial planning, disability insurance, or other investment needs. We’ll be happy to make an introduction.

Happy New Year

As this is our final newsletter of 2025, and on behalf of our entire team, I’d like to take a moment to express our sincere thanks to all of you who trust us to deliver your student loan news and advice. It has been quite a whirlwind of a year, and we already know 2026 will be a major transition year. Rest assured that every story we cover is meant to keep you informed without bias, and every bit of advice we give is meant to help you reduce your cost and improve your overall experience in both acquiring and retiring your student loan debt. That has always been our commitment, and that is what you can expect from us in 2026.

We wish all a wonderful holiday season and a prosperous new year!