New student loan changes add to the rising cost of living

(Source: ASDP) Pago Pago, AMERICAN SAMOA — The American Samoa Democratic Party (ASDP) expressed concern this week over new federal student loan changes that took effect on July 1, warning that they will place additional financial pressure on students and working families already struggling with the rising cost of living. The changes, enacted through the One Big Beautiful Bill Act, restructure the federal student loan system by replacing existing repayment options, limiting certain borrowing opportunities, and increasing monthly payments for many borrowers. "At a time when families are paying more for groceries, housing, utilities, and transportation, adding higher student loan payments only makes it harder for people to get ahead," said Patrick Ti'a Reid, Chair of the American Samoa Democratic Party. "Higher education should be a pathway to opportunity, not another source of financial hardship." According to Education Week, experts warn that affordability is the primary concern as the new policies take effect. Michele Zampini of The Institute for College Access & Success noted that "the main concern is the affordability of monthly payments," with many borrowers expected to see significant increases in what they owe each month. For students from American Samoa, where many pursue higher education off-island and often rely on federal student aid, the changes could have long-term consequences. Increased repayment obligations may discourage students from pursuing college or graduate education and make it more difficult for graduates to return home and contribute to the territory's workforce. The ASDP encourages students, families, and borrowers to review the changes and understand how they may be affected. Section: Local News Tags: federal student loan changes
2026-07-08 17:03:14