Student Loans and the Cost of Education — 2026-09-19

Top developments

US Appeals Court Ruling on Public Service Loan Forgiveness

On Thursday, September 18, 2026, the U.S. Department of Education formally appealed a federal court ruling that defined which employers qualify for Public Service Loan Forgiveness (PSLF). This legal maneuver leaves borrowers who have met the 120-payment threshold in uncertainty, as their eligibility for debt cancellation remains contested by the administration. The appeal signals continued friction between the administration's interpretation of "public service" and judicial precedents, potentially delaying relief for thousands of public sector workers.

Japan Moves to Reinstate Teacher Loan Repayment Exemptions

The Japanese Ministry of Education, Culture, Sports, Science and Technology (MEXT) has begun considering a plan to exempt teachers from repaying government student loans taken out during their university studies. Announced in mid-September 2026, this move aims to revive a system that was abolished approximately 30 years ago, directly addressing the severe shortage of educators in Japan. The policy seeks to incentivize teaching careers by removing long-term debt burdens, with details on income limits and eligible institutions expected in upcoming legislative drafts.

Ukraine Doubles Academic Scholarships

Effective September 1, 2026, Ukraine implemented a significant increase in student financial aid, doubling academic scholarships to between UAH 4,000 and 7,420 per month. While this expansion provides immediate liquidity for students, social benefits did not automatically increase alongside the academic grants. This adjustment reflects ongoing efforts to support higher education access amidst economic challenges, with payments scheduled to be credited in the coming weeks.

Law School Debt Costs Remain High

A new analysis published on September 19, 2026, highlights the persistent high cost of law school, noting that students must navigate complex financial aid offers covering tuition, rent, books, and fees over three years. The report emphasizes that average debt loads continue to pose significant barriers to entry for many prospective attorneys, requiring careful evaluation of return on investment before enrollment.

1 sources

scholarshub.net

scholarshub.net

Local view

In Japan, Yomiuri Shimbun and Asahi Shimbun reported on September 16 and 17 respectively that the government is actively drafting policies to exempt teachers from student loan repayments. Local stakeholders view this as a critical intervention to combat the chronic teacher shortage, with media noting that the revival of this 30-year-old policy could significantly alter career incentives for university graduates.

Context & numbers

• PSLF Eligibility: The current legal dispute affects borrowers who have made 120 qualifying payments under income-driven repayment plans, a group numbering in the hundreds of thousands whose forgiveness status is now under appellate review.
• Ukrainian Scholarship Amounts: Academic scholarships in Ukraine have risen to UAH 4,000–7,420 monthly, representing a 100% increase from previous levels.
• Teacher Loan Exemption History: The proposed Japanese policy would restore an exemption system that existed prior to its abolition roughly three decades ago.

On the radar

• U.S. Auto-Pay Deadline: Borrowers must enroll in auto-pay by September 30, 2026, to secure a 1 percentage point interest rate discount (up from the typical 0.25%) through June 30, 2028.
• PSLF Inclusion Act: Introduced in the U.S. House on September 4, 2026, this bill aims to simplify and accelerate PSLF processing; watch for committee hearings following the recent appeal news.