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As enrollment deadlines approach, fewer students have figured out how they will afford college next year. Ongoing problems with the new Free Application for Federal Student Aid have delayed financial aid award letters and even prevented many high school seniors and their families from applying for aid at all. As of the latest update, roughly 7.3 million 2024-25 FAFSA applications have been submitted and sent to schools, according to the U.S. Department of Education, less than half of the more than 17 million students who use the FAFSA in ordinary years. Many institutions are now issuing aid with the information they have on hand, according to the Department of Education. "Students should know that they are not going through this alone, we will remain in regular communication with schools and students and encourage students to stay in touch with us and with their colleges," an Education Department spokesperson said.
Persons: Mark Kantrowitz, it's, Sandy Baum Organizations: Federal, Aid, U.S . Department of Education, Finance, Harvard, Urban Institute's Center, Education, Department of Education
US President Joe Biden gestures after speaking about student loan debt relief at Madison Area Technical College in Madison, Wisconsin, April 8, 2024. Andrew Caballero-Reynolds | AFP | Getty ImagesThe Biden administration has published its new student loan forgiveness proposal, putting it on the path to start clearing debt for millions of borrowers this fall. Outstanding federal education debt in the U.S. stands at around $1.6 trillion, and burdens Americans more than credit card or auto debt. Here's what to know about Biden's new relief plan. More than 25 million federal student borrowers owe more than they originally borrowed, according to the Biden administration.
Persons: Joe Biden, Andrew Caballero, Reynolds, Biden, Joe Biden's, FAFSA, haven't Organizations: Madison Area Technical College, AFP, Getty, U.S, Supreme, U.S . Department of Education, Consumer, Finance, Harvard, Education Department, Education Locations: Madison , Wisconsin, U.S
Read previewAnother lawsuit to block President Joe Biden's new student-loan repayment plan has arrived. On Tuesday, Missouri's Attorney General Andrew Bailey led six other GOP states in filing a lawsuit to block the new SAVE income-driven repayment plan. It's a similar argument to the lawsuit Biden v. Nebraska, which the Supreme Court ruled had standing to strike down Biden's first broad debt relief plan. It said that due to the generosity of the SAVE plan, fewer borrowers will enroll in PSLF, thus undermining states' recruitment efforts into the public sector. This lawsuit follows Biden's release of new details for his broader student-loan forgiveness plan, which is set to benefit over 30 million borrowers.
Persons: , Joe Biden's, Andrew Bailey, Biden's, It’s, E67qx1RMsP —, It's, Biden, MOHELA, Bailey Organizations: Service, Missouri's, Business, Education Department, else’s Ivy League, GOP, An Education Department, US Department of Education, MOHELA, . Nebraska, SAVE, of, Public Locations: Missouri, ., of Missouri, PSLF
Eleven GOP state attorneys general filed a lawsuit to block the SAVE income-driven repayment plan. They argued that the shortened timeline for debt relief through the plan is unconstitutional. An Education Department official said Congress allows the authority to set terms for income-driven repayment. While the lawsuit makes several comparisons to the debt relief plan the Supreme Court struck down, the legal basis for the two plans differ. The Education Department is currently undergoing the negotiated rulemaking process for its second attempt at a broader form of debt relief.
Persons: , Joe Biden's, Kris Kobach —, Miguel Cardona, Biden's, Biden, Kobach, Harris Organizations: GOP, An Education Department, Service, Biden, Education, Republican, Education Department, Business, US Department of Education, Harris Administration, Higher Locations: Kansas
"So I mean, we upped our retirement contributions, put more in our savings account because we're saving to buy an apartment." According to David's account, he's expected to resume payments in April, and while he's not yet sure what the amount will be, he's already having to cut back on spending and dig into his retirement savings to make sure he can afford an additional bill. Since federal student-loan payments resumed in October after an over three-year pause, many borrowers have been struggling to get help from their servicers due to strained resources at Federal Student Aid, the office that oversees repayment. AdvertisementAs David waits for clarity, he's evaluating how much money he can withdraw from his savings account to face his student-loan payments once again. "I'm on the fortunate end of this in that I do actually have a savings account," David said.
Persons: David, David —, , MOHELA, he's, We've, we're, Anne, hasn't, I'm Organizations: Service, Business, BI, Public, Education Department, Federal Student Aid, Republican Locations: PSLF, MOHELA
Anne, 46, received notice in June that her loans were forgiven thanks to her years of public service. But in late February, MOHELA told her the relief was an error, and her balance was reinstated. AdvertisementAnne breathed a sigh of relief in June when she received the notice she waited years for: her nearly $200,000 student-loan balance was forgiven. I really can't believe this is true," Anne told Business Insider. BI previously spoke to another borrower, Okwara, who MOHELA told that the loan forgiveness he received last year was a mistake.
Persons: Anne, MOHELA, , She's, Anne isn't, I'm, Okwara, she's, it'll, I've Organizations: Service, Public, Business, PSLF, BI, Education Department
Millions of student-loan borrowers might soon see improvements to the platforms they use to pay off their debt. Federal Student Aid also posted an announcement on its website with further details on the platform changes. This is likely an effort to prevent scams by making it clear to borrowers that the servicer works with the federal government. It'll ensure that borrowers can detect whether information is coming from an Education Department website to protect them from scams and reduce disruptions across servicing platforms. Advertisement"You will see more improvements when managing and repaying your loans in the coming year," the email to borrowers said.
Persons: Joe Biden's, MOHELA Organizations: Service, Joe Biden's Education Department, Business, Federal, Aid, Education Department
Okwara, 36, received a letter from MOHELA in May 2023 confirming his loans were forgiven. But on February 29, MOHELA sent a letter telling him the relief was a mistake, and his balance was reinstated. Okwara made those investments because he no longer had to worry about his student loans — or so he thought. On February 29, he received a letter that confirmed exactly what he feared: the forgiveness was a mistake, and his $93,000 balance had been reinstated in full. Did you get a notice that your student loans were reinstated after receiving forgiveness?
Persons: MOHELA, , Okwara —, Okwara Organizations: Service, Business, PSLF, Public, BI, An Education Department, Education Department Locations: MOHELA
A Pennsylvania law that makes it a crime to release information about teacher disciplinary complaints is an unconstitutional violation of the First Amendment, a federal judge has ruled. The law's confidentiality provision makes it a misdemeanor to disclose the existence of a state complaint or any information about it unless and until discipline is imposed. U.S. District Judge Karen S. Marston did not strike down the law itself in her Jan. 10 ruling. “The confidentiality provision exists to protect the reputation, privacy, and due process rights of educators” who are accused, and ultimately cleared, of wrongdoing, said Chris Lilienthal, a spokesperson for the Pennsylvania State Education Association. Pepper's misconduct complaint centers on a January 2023 email that school psychologist Julia Szarko sent to his school district account.
Persons: , Jimmy Adams, he’s, Karen S, Marston, James Pepper, Pepper, “ weaponizing ”, Aaron Martin, Martin, , Chris Lilienthal, Jennifer Schorn, Julia Szarko, Szarko, Szarko —, Pepper's, she's, “ Dr, ” Pepper, Organizations: Pennsylvania Department of Education, National Association of State, Education, U.S, District, Central Bucks School District, Central Bucks, Department of, Pennsylvania State Education Association, Republican, of Education Locations: Pennsylvania, Bucks County, Philadelphia, Pennsylvania’s
The Education and Justice Departments said their new bankruptcy guidance for student-loan borrowers is a success. They said 632 borrowers have filed for relief in the first 10 months of the new process. But they did not include the exact number of borrowers that have actually gotten that relief. AdvertisementOver the past year, a growing number of student-loan borrowers have tapped into a new process to help them get rid of their debt in court. On Thursday, the Education and Justice Departments announced a "successful first year" of its updated guidance to help borrowers discharge their debt through bankruptcy.
Persons: , there's, Vanita Gupta, Aaron Ament, Ament, Massachusetts Sen, Elizabeth Warren, General Merrick Garland, Ron DeSantis, we've, DeSantis Organizations: Justice, Service, Education, Justice Department, Student Defense, Education Department, Duke Law, Department, Democratic, Republican, GOP Florida Gov Locations: Massachusetts
WASHINGTON (AP) — The Biden administration is moving toward a narrower student loan relief plan that would target specific groups of borrowers — those with soaring interest, for example — rather than a sweeping plan like the one the Supreme Court rejected in June. An Education Department document obtained by The Associated Press details a draft of new federal rules paving the way for a second attempt at student loan relief. It would have canceled up to $20,000 in federal student loans for those with annual incomes below $125,000 or couples below $250,000. But after that was rejected by the court’s conservative majority, he called on the Education Department to try again using a different legal basis. The committee is made up of negotiators who represent a range of viewpoints on student loans.
Persons: , Biden, Joe Biden’s, Organizations: WASHINGTON, Education Department, The Associated Press, Republicans, Higher, NAACP, Associated Press, Carnegie Corporation of New, AP Locations: Carnegie Corporation of New York
A CFPB report analyzed over 9,000 complaints it received from student-loan borrowers in the past year. It found that poor customer service at servicers have kept borrowers without relief they deserve. In that time period, 9,284 consumers submitted student-loan complaints — 6,934 of which were related to federal loans and 2,350 of which were related to private loans. Over the summer, Biden rolled out a new income-driven repayment plan, known as the SAVE plan, intended to lower many borrowers' monthly payments. For example, one borrower complaint to the CFPB stated: "I cannot get ahold of my loan servicer.
Persons: , Robert Cameron, Cameron, Biden, Servicer MOHLEA, servicers Organizations: Service, Consumer Financial, Bureau, Loan Ombudsman, Consumers, Education Department, Public, An Education Department Locations: servicers
AdvertisementAdvertisementThe 2024 presidential election is quickly approaching — and there's a lot on the line for student-loan borrowers. While most federal borrowers were not required to make any payments for nearly three years of President Joe Biden's first term, they were also hopeful for broad debt relief. Now the Education Department is in the process of crafting a new plan under a different law. Here's what Republican presidential candidates are saying about the Education Department — and how it could impact millions of student-loan borrowers. And while private banks administer non-federal loans, borrowers with private debt often face higher interest rates without the option for federal relief.
Persons: , Joe Biden's, Biden, Donald Trump's, Betsy DeVos, Ron DeSantis, Education Department —, Nikki Haley, Tim Scott, Chris Christie, Vivek Ramaswamy, Ramaswamy, Thomas Massie, Massie, Pell, Ronald Reagan Organizations: Department, GOP, Education Department, Service, Republican, Federal Department of Education, of Education, Education Department —, Internal Revenue Service, Department of Commerce, Energy Department, Education, Washington, Federal Locations: Florida, Washington ,
Rep. Virginia Foxx and Sen. Bill Cassidy asked the GAO to investigate the student-loan payment resumption. They said they're concerned loan servicers are not adequately prepared to facilitate repayment. The student-loan payment pause officially ended on September 1 when interest began accruing again on federal borrowers' balances, and bills will start becoming due next month. Additionally, Cassidy and Foxx said that it is "unclear whether borrowers will begin repayments when billing statements resume. In other cases, there will be borrowers who will take some time to work student loans back into their household budgets."
Persons: Virginia Foxx, Sen, Bill Cassidy, they're, Bill Cassidy —, , Foxx, Cassidy, servicers, Education James Kvaal, Kvaal Organizations: Service, Office, Education, Education Department, GAO, Public Locations: Wall, Silicon
Experts told Insider lack of broad debt relief and high inflation could contribute to the challenges. After more than three years, President Joe Biden officially ended the pandemic pause on federal student-loan payments, with waived interest, on Friday. "Before the pandemic, borrowers were already choosing between meeting their own basic needs and making their student-loan payments. "The more resource-strapped a servicer is and the more resource-strapped FSA is, the heightened concerns we have for that treatment of borrowers and just for the accuracy on the part of servicers giving information to borrowers," Hall said. In the meantime, the department recommends borrowers make their payments and wait for Biden's new plan for broad debt relief.
Persons: Joe Biden, she's, it's, Carolyn Fast, servicers, Biden, Stephanie Hall, Hall, Scott Buchanan, , there's Organizations: Service, The Century Foundation, Education Department, An Education Department, Center for American Progress, Department, Student Loan, , Management, Federal, Aid, Federal Student Aid Locations: Wall, Silicon
The Education Department announced $72 million in student-debt relief for 2,300 borrowers. On Wednesday, President Joe Biden's Education Department, along with California Attorney General Rob Bonta, announced it was canceling $72 million in student debt for 2,300 borrowers who it said were "cheated" by Ashford University, an online for-profit school based in San Diego. In 2022, a judge ruled that Ashford made 1.2 million misrepresentations to students and faced a civil penalty of $22.3 million. I want to thank the Biden-Harris Administration for changing the lives of thousands of former Ashford students today. Since Biden took office, his Education Department has taken a number of steps to provide debt relief to targeted groups.
Persons: Joe Biden's, Rob Bonta, Bonta, Harris, Ashford, Biden Organizations: Education Department, Ashford University, Service, Joe Biden's Education Department, California Department of Justice, Ashford, Biden, Harris Administration, Department Locations: Wall, Silicon, California, San Diego, Ashford, Zovio, Colorado, CollegeAmerica
Student-loan company Nelnet's call center and website temporarily shut down due to "technical difficulties." The student-loan payment pause is set to end on Friday. AdvertisementAdvertisementAfter over three years, the federal student-loan payment pause is about to end. AdvertisementAdvertisementHowever, it's a critical time for student-loan borrowers to ensure they can financially plan for the payment resumption, and these technical issues are not making matters easier. Are you experiencing challenges with the student-loan payment resumption?
Persons: Nelnet, it's, I've Organizations: Service, An Education Department, Federal Student Aid Locations: Wall, Silicon, Houston
"I fully expect this debt will follow me to the grave," Ron Rizzardi told Insider in 2021. AdvertisementAdvertisementRon and Marcia Rizzardi just got their student-loan balance forgiven. "It's a little unbelievable — surreal, maybe," Ron Rizzardi told Insider after he received that letter. AdvertisementAdvertisementFor the Rizzardis, their chapter of student-loan repayment is now closed. "I had just gotten back from a meeting, and I sat down, and I just got into the habit of looking at my servicer's account every day," Ron Rizzardi said.
Persons: Ron, Marcia Rizzardi, Ron Rizzardi, Harris, we'll, it's, I've, Joe Biden's, We've, We'd, It's, , servicers Organizations: Service, Harris Administration, Students, Education Department Locations: Wall, Silicon
Biden officially launched the new income-driven student-loan repayment plan, known as the SAVE plan. On Tuesday, Biden's administration announced that student-loan borrowers can now officially enroll in the Saving on a Valuable Education, or SAVE, plan, after it began beta testing the program in July. "The SAVE plan is a sea change for students, making college loans far more affordable than ever before," Under Secretary of Education James Kvaal said in a statement. Borrowers who are currently enrolled in the REPAYE plan will automatically have their monthly payments adjusted to the new SAVE plan before payments restart." AdvertisementAdvertisement"The SAVE plan is a game changer," Education Secretary Miguel Cardona told reporters on a Monday press call.
Persons: Biden, Joe Biden, Biden's, Education James Kvaal, Miguel Cardona, we're Organizations: Service, Valuable Education, Education Department, SAVE, Education, Federal, Internal Revenue Service, NAACP Locations: Wall, Silicon
Over 800,000 student-loan borrowers are set to start seeing their debt wiped out. It's part of a one-time account adjustment for borrowers on income-driven repayment plans. The future of the relief is uncertain after conservative groups filed a lawsuit to block it. On Monday, student-loan companies are set to begin discharging the debt of 804,000 borrowers who have qualified for $39 billion in debt relief — part of the first batch of borrowers affected by the Education Department's one-time account adjustment for income-driven repayment plans. "At the start of this Administration, millions of borrowers had earned loan forgiveness but never received it.
Persons: Education James Kvaal, Joe Biden's Organizations: Service, Education, New Civil Liberties Alliance, Cato Institute, Mackinac Center for Public, Public, Education Department Locations: Wall, Silicon
The lawsuits concern relief for borrowers on income-driven repayment and those who applied for borrower defense. On top of that, borrowers are still reeling from the June Supreme Court decision that struck down President Joe Biden's plan to cancel up to $20,000 in student debt for federal borrowers. The announcement was part of the department's one-time account adjustment to ensure borrowers payments are up to date, and those who completed more than the required payments would receive a refund. But just days later, a separate debt relief measure got blocked in court. The department has already notified borrowers of that relief, and it expects more will qualify.
Persons: SCOTUS, Biden, Joe Biden's, it's, Jason Harmon, I've, I'm, Harmon, , Reagan Organizations: Service, Education Department, New Civil Liberties Alliance, Cato Institute, Mackinac Center for Public, Public, An Education Department, Trump, Circuit, Career Colleges, Schools of Texas Locations: Wall, Silicon
Democratic Rep. Summer Lee has over $200,000 in student debt from college and law school. She said that millions of borrowers will soon have to adjust their lives to afford another monthly bill. "I either took this loan debt or I didn't get this education, I missed this educational opportunity," she continued. "The reality is that we're on-ramping millions of borrowers right back into a debt servitude," she said. At the end of June, the Supreme Court struck down President Joe Biden's broad plan to cancel up to $20,000 in student debt for federal borrowers.
Persons: Summer Lee, Lee, Donald Trump, , Joe Biden's, Biden, it's Organizations: Democratic, Service, Democratic Rep, Pennsylvania State University, Howard University School of Law, Education Department, Higher, Education, Republican Locations: Wall, Silicon, Pennsylvania
Biden announced reforms to the bankruptcy process for student-loan borrowers in November. In November, the Education and Justice Departments announced they were changing the way student-loan borrowers can attempt to discharge their loans through bankruptcy. The bankruptcy process for student-loan borrowers has also been under increased scrutiny recently from lawmakers on both sides of the aisle. Ron DeSantis also recently said during remarks unveiling his economic plan should he be president that he supports bankruptcy as a path for student-loan borrowers. As is typical with government programs, implementing changes to the bankruptcy process could take some time.
Persons: Biden, It's, Joe Biden, Aaron Ament, it's, Massachusetts Sen, Elizabeth Warren, Ron DeSantis Organizations: Student Defense, Service, Education, Justice, Education Department, Student, of Education, Public, An Education Department, Department of Education, Department of Justice, Justice Department, Florida Gov Locations: Wall, Silicon, Washington, Massachusetts
In October, student-loan borrowers will start making payments again. The Education Department announced a number of steps to ease the transition back into repayment. In March 2020, former President Donald Trump first implemented the student-loan payment pause, with waived interest, to give millions of federal borrowers financial relief during the pandemic. An Education Department spokesperson confirmed in June that there is no leeway with that provision. "Student loan interest will resume starting on September 1, 2023, and payments will be due starting in October," a department spokesperson said.
Persons: Donald Trump, Joe Biden, Biden, , Massachusetts Sen, Elizabeth Warren, New Jersey Sen, Bob Menendez, servicers, Virginia Foxx, Sen, Bill Cassidy —, doesn't, Cassidy, we'll, Miguel Cardona Organizations: The Education Department, Service, Federal, An Education Department, Education Department, Higher, SAVE, Democratic, House, Department Locations: Wall, Silicon, Massachusetts, New Jersey
Opening a new front in legal battles over college admissions, the U.S. Department of Education has launched a civil rights investigation into Harvard University's policies on legacy admissions. An Education Department spokesperson confirmed its Office for Civil Rights opened an investigation at Harvard. Wesleyan President Michael Roth said a student's "legacy status" has played a negligible role in admissions, but would now be eliminated entirely. Legacy policies have been called into question after last month's Supreme Court ruling banning affirmative action and any consideration of race in college admissions. NAACP President and CEO Derrick Johnson said he commended the Education Department for taking steps to ensure the higher education system "works for every American, not just a privileged few."
Persons: Jane Sujen Bock, Michael Roth, Derrick Johnson, Brown Organizations: U.S . Department of Education, Harvard, Civil Rights, discriminates, Education Department, Coalition, Wesleyan University, Wesleyan, Amherst College, Carnegie Melon University, Johns Hopkins University, NAACP, Ivy League, Stanford, MIT, Duke, University of Chicago, Athletic Locations: Boston, New England, Connecticut, Massachusetts, Pennsylvania, Maryland
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