Media Spotlight: Matt Carpenter Talks Repayment Plans Update and Urges Families to Borrow Smart on CBS News in Houston
As millions of student loan borrowers face the harsh reality of resumed payments, confusion and financial stress are at an all-time high. Following the end of COVID-era protections, many families are unsure where to turn or what their options are. That’s where Matt Carpenter, founder of College Aid Pro, steps in — offering expert guidance, transparency, and solutions that empower borrowers and families across the country.
9.7 Million Borrowers Past Due — But There Is Hope
According to the Federal Reserve Bank of New York, nearly 9.7 million student loan borrowers are now past due on their payments. This wave of delinquency follows the conclusion of a COVID-19 payment pause and a temporary 12-month “on-ramp” grace period, which shielded borrowers from many of the penalties of late payment. As of September, that relief has ended — and millions are falling behind.
But Matt Carpenter offers a glimmer of hope. “Although five repayment options were paused,” he shared in a recent interview, “three of them just came back two days ago.” Borrowers now have access again to the Income-Contingent Repayment (ICR) plan, Income-Based Repayment (IBR) plan, and Pay As You Earn (PAYE) plan — all of which calculate monthly payments based on the borrower’s income. In some cases, those payments could be as low as $0 for individuals with little to no income.
How Borrowers Can Take Action
Carpenter urges borrowers to log into their loan accounts immediately. Although federal loans are issued by the government, they are serviced by private contractors like Nelnet, one of several major providers. Each borrower must identify their specific loan servicer and explore the newly reactivated repayment plans online.
While some may find online systems confusing or support lines overwhelmed, Matt encourages persistence. “It’s tough to get through, especially since the Department of Education has experienced staffing cuts of up to 50%,” he says. “But people are getting results by staying persistent — even if that means sitting on hold while going about your day.”
The Broader Economic Impact of Student Loan Debt
The financial strain of student loan debt extends far beyond the individual. “This is the first generation where many parents are still paying off their own student loans,” Carpenter explains. “That limits their ability to help their children cover today’s rising college costs.” At the same time, recent graduates entering the workforce are burdened by debt, delaying major life milestones like homeownership, marriage, or starting a family.
This debt ripple effect is undeniable. And while there’s no one-size-fits-all solution, families need to take a more strategic approach to college planning than ever before.
Rethinking College Affordability
If you have a high school junior or senior at home, now is the time to rethink your assumptions about affordability. “It might actually be cheaper for a middle-income family to attend a $90,000 private college like Rice than a public university like the University of Houston,” says Carpenter.
This insight surprises many families, but it’s rooted in truth. Private colleges often have larger endowments and more generous financial aid policies than public schools. Unfortunately, a lack of transparency around college pricing means most families assume expensive schools are automatically off the table — when in fact, they could be the best fit financially.
Be a Smart Borrower: Credit Score Matters
For families that do need to borrow, Matt has one key message: your credit score is everything. Both the student’s and the parent’s credit will influence loan terms, repayment options, and interest rates. That’s why it’s critical to monitor and improve your credit as early as possible in the planning process.
“We need to shop around and act like savvy consumers,” Carpenter advises. “Your credit score will directly impact your borrowing costs, so take it seriously.”
The College Aid Pro Advantage
College Aid Pro exists to provide families with a trusted resource amidst all these challenges. MyCAP helps families understand their true financial aid eligibility, compare costs across colleges, and build a personalized plan for funding education without crushing debt. Matt Carpenter and his team provide both the tools and the expert guidance families need to feel confident and in control.
Whether you’re repaying loans, applying for financial aid, or building a smart list of affordable colleges, College Aid Pro is the trusted partner you want in your corner.
