States and institutions are trying out new strategies to bridge the gap as federal student loan rules get stricter, This Week In College And Money, particularly to assist those borrowers who may be caught in the middle of these changes and face challenges in managing their student debt. Lawmakers say that some borrowers could get stuck in the middle, facing challenges in meeting the new requirements while still needing financial support for their education, particularly as they navigate rising tuition costs and limited access to alternative funding sources. This Week In College And Money
For the week of January 23, 2026, here are the most relevant stories that are affecting higher education and student budgets.
Deadlines at a Glance
- States move to create new loan programmes as federal borrowing limits shrink.
- A public university offers a rare career-outcome guarantee to graduates.
- Idaho launches a new education tax credit for families.
- Lawmakers warn that programs for student loan forgiveness could be disrupted.
1. States Expand Loan Programs as Federal Limits Tighten
As federal student loan access narrows for graduate students (including the end of Grad PLUS loans and new caps on borrowing) several states are stepping in with state-based student loan programs aimed at graduate and professional students. These programs are designed to support fields such as medicine, law, education, and nursing, where costs often exceed new federal limits. This Week In College And Money
State officials say the goal is to preserve access to advanced degrees without pushing students entirely into the private loan market.
Here’s the list of state-based non-profit lenders. This Week In College And Money
➡️ Impact: Federal loan caps won’t affect all students equally. Where you live may now play a larger role in how much you can borrow (and on what terms) to complete graduate or professional school. This Week In College And Money
2. Central Michigan University Launches Career Outcome Guarantee
Central Michigan University announced the Central Career Guarantee for undergraduates beginning in fall 2026. Students who complete the program and do not secure employment or graduate school placement within six months of graduation can receive $2,000 and continued career services support. This Week In College And Money
The program is designed to reassure families worried about whether a degree will translate into post-college opportunities.
Impact: Outcome guarantees remain rare in higher education. As families scrutinise return on investment more closely, programs that tie cost to outcomes may become a stronger recruiting tool. This Week In College And Money
3. Idaho Launches New Education Tax Credit for Families
Idaho rolled out a new Parental Choice Tax Credit, offering up to $7,500 per student to help families pay for education-related expenses. The refundable credit can be used for tuition, textbooks, tutoring, and other qualifying costs. This Week In College And Money
State leaders say the credit is intended to give families more flexibility in how they pay for education.
Impact: Education tax credits can reduce out-of-pocket costs directly, but eligibility and allowable uses vary by state. Families should understand how state credits interact with federal education benefits and financial aid. This Week In College And Money
4. Lawmakers Share Concern Over The End of SAVE
A bipartisan group of lawmakers is raising concerns that ongoing changes to federal repayment plans (including the phase-out of the SAVE plan) could disrupt access to Public Service Loan Forgiveness and other forgiveness pathways. This Week In College And Money
They warn that borrowers who planned their careers and finances around existing programs could face higher payments or longer repayment timelines if replacement plans are delayed or narrowed. This Week In College And Money
Impact: Forgiveness programs rely on stable rules over long periods. Borrowers seeking forgiveness should closely monitor policy changes and be ready to modify their repayment strategies accordingly. This Week In College And Money