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☆ Federal Student Aid head Richard Cordray, tasked with FAFSA rollout, to step down
▼ + stars: | 2024-04-26 | by ( Katie Lobosco | ) edition.cnn.com time to read: +7 min

Washington CNN —The head of the Federal Student Aid office, which has faced criticism for the botched rollout of this year’s college financial aid form, will be stepping down. The announcement of Cordray’s departure comes as his office has been under fire for problems with a new version of the Free Application for Federal Student Aid, or FAFSA, released late last year. “If there was a financial aid director, or even a college president, that delayed financial aid on their campus for up to six months, the professional price that would be paid for that would be pretty steep,” Justin Draeger, president of the National Association of Student Financial Aid Administrators, told lawmakers. Cordray’s tenureAs the head of FSA, Cordray oversaw not only the FAFSA but also the entire $1.6 trillion federal student loan system. It also sued Navient, one of the biggest federal student loan servicers, for allegedly processing payments incorrectly.

Persons: Richard Cordray, Cordray, Justin Draeger, Virginia Foxx, Miguel Cardona, Cordray’s, Rich Cordray’s, ” Cardona, “, Rich, Obama, ” Cordray, Pell, Biden, Trump, Massachusetts Sen, Elizabeth Warren —, Navient, “ I’m, ” Warren Organizations: Washington CNN, Federal, Aid, CNN, Department of Education, Federal Student Aid, Education, Workforce, National Association of Student Financial, Republican Rep, Consumer Financial Protection Bureau, Democratic, National College, of Education, Public, Consumer Financial, Massachusetts, Corinthian Colleges Locations: North Carolina, Ohio

☆ These are the 5 groups of borrowers eligible for Biden's new student loan forgiveness plan
▼ + stars: | 2024-04-08 | by ( Jessica Dickler | ) www.cnbc.com time to read: +3 min

Borrowers with 'runaway interest'More than 25 million borrowers owe more than they originally borrowed in federal student loans because of accrued interest charges, according to the Biden administration. Anyone enrolled in the Saving on a Valuable Education Plan, or SAVE, or any other income-driven repayment plan would be eligible without having to apply. Borrowers eligible for forgiveness programs, who haven't appliedConsumer advocates and borrowers have complained that the government's debt forgiveness programs can be hard to know about and to access. Borrowers who entered repayment over 20 years agoAnother 2.5 million borrowers would benefit from the forgiveness of student loans that have been held for two decades or longer. Borrowers who enrolled in 'low-value' collegesGraduates with loans from "low-value" institutions or programs would also be eligible for loan forgiveness.

Persons: Biden, they're, haven't Organizations: Public, Education, Federal, Aid, Education Department, Corinthian Colleges, ITT Technical Institute

☆ Why student loan forgiveness remains a key issue for the Biden campaign
▼ + stars: | 2024-03-30 | by ( Katie Lobosco | ) edition.cnn.com time to read: +9 min

Still, the Biden campaign sees student debt forgiveness as a winning issue. The administration is working on developing another student loan forgiveness program, relying on a different legal authority this time. Student debt policy has come a long wayStill, student loan borrower advocates agree that forgiveness for nearly 4 million people is worth acknowledging. Before the 2016 presidential campaign, broad student debt cancellation was not an issue that candidates usually campaigned on. Cole also served on the Department of Education’s rulemaking committee tasked with developing the new student loan forgiveness program.

Persons: Joe Biden, Biden, It’s, –, ”, Braxton Brewington, “, ” Biden, Donald Trump, Trump, we’ll, it’s Joe Biden, Seth Schuster, Trump Democratic Sen, Elizabeth Warren –, Betsy DeVos, “ Joe Biden, ” Warren, DeVos, he’s, The Trump, it’s, There’s, that’s, Brewington, Wisdom Cole, Cole, Jill Biden’s, ” Cole, Warren, CNN’s Ariel Edwards, Levy Organizations: Washington CNN, Supreme, Republican, Biden, Trump Democratic, CNN, Education Department, Corinthian Colleges, The, PSLF, Department of Education, NAACP Youth & College Division, Department, Education’s, State, Union, Black, KFF, NAACP Locations: California, United States, Massachusetts

☆ Biden is still running on a promise to get student-loan forgiveness to 'as many borrowers as possible.' Here's where his debt relief efforts stand.
▼ + stars: | 2024-03-08 | by ( Ayelet Sheffey | ) www.businessinsider.com time to read: +7 min

When Biden was first running for office, he campaigned on canceling $10,000 in student debt per borrower, along with reforming repayment programs like Public Service Loan Forgiveness. AdvertisementThe Education Department is undergoing a process to get relief to borrowers using a different law, but it will take time to reach borrowers. Targeted student-loan forgivenessWhile the Supreme Court struck down Biden's first try at broad student-loan forgiveness, he has still enacted smaller amounts of relief to borrowers through various reforms. Additionally, the Education Department has announced debt cancellation for borrowers defrauded by the schools they attended, including the major for-profit chains ITT Technical Institute and Corinthian Colleges. In February, the department announced $1.2 billion in debt relief for 153,000 borrowers, the first group to benefit from that provision.

Persons: —, Joe Biden, Biden, Clare McCann, Arnold Ventures —, McCann, Biden's, Donald Trump Organizations: Service, Public, Biden, Business, Department, Arnold Ventures, Education Department, ITT Technical Institute, Corinthian Colleges, Education, Higher Locations: PSLF, deferment

☆ Nearly 153,000 people will be notified that their student loan debt is canceled
▼ + stars: | 2024-02-21 | by ( Katie Lobosco | ) edition.cnn.com time to read: +8 min

Washington CNN —Nearly 153,000 student loan borrowers currently enrolled in a new repayment plan launched by the Biden administration are expected to get an email Wednesday notifying them that their remaining federal student loan debt will be canceled, totaling about $1.2 billion. Biden’s plans to provide student debt relief were dealt a significant blow when the Supreme Court rejected his signature student loan forgiveness program last year. Nearly $138 billion of federal student loan debt has been canceled for almost 3.9 million borrowers since Biden took office. Most of the federal student loan debt cancellations that have taken place under Biden have come through programs that existed before he took office. The PSLF program cancels outstanding federal student loan debt for public-sector workers who have made 120 qualifying monthly student loan payments, or about 10 years’ worth of payments.

Persons: Biden, Joe Biden, Biden’s, “, ” Biden, he’s, Trump, Betsy DeVos, CNN’s Nikki Carvajal, Kevin Liptak Organizations: Washington CNN, Republican, Department of Education, SAVE, of Education, Office, PSLF, Corinthian Colleges, Social Security Administration, Department of Veterans Affairs, Department, Education, Social Security Locations: Culver City , California

☆ Student loan forgiveness: How Biden continues to cancel debt after Supreme Court ruling
▼ + stars: | 2023-10-22 | by ( Katie Lobosco | ) edition.cnn.com time to read: +9 min

Washington CNN —Although the Supreme Court struck down President Joe Biden’s signature student loan forgiveness program in late June, his administration has found ways to cancel more than $48 billion in debt since then. That’s more student loan forgiveness than was granted under any other administration – in part due to the Biden administration’s efforts to temporarily expand some debt relief programs and to correct past administrative errors made to borrowers’ student loan accounts. Expanding debt relief program for public-sector workersNearly $51 billion of student loan debt has been canceled for 715,000 borrowers through the Public Service Loan Forgiveness program since Biden took office. The PSLF program cancels outstanding federal student loan debt for public-sector workers who have made 120 qualifying monthly student loan payments, or about 10 years’ worth of payments. Nearly 513,000 borrowers with a total and permanent disability have received $11.7 billion in student loan forgiveness since 2021.

Persons: Joe Biden’s, Biden, Trump, they’d, –, “, Virginia Foxx, ”, Abby Shafroth, Shafroth, Betsy DeVos Organizations: Washington CNN, of Education, Office, Congress, ”, CNN, Department of Education, Republican, Education, White, New Civil Liberties Alliance, Cato Institute, Mackinac Center for Public Policy, National Consumer Law Center, Loan, Public, PSLF, University of Phoenix, Corinthian Colleges, Social Security Administration, Department of Veterans Affairs, Department, Social Security Locations: Michigan

☆ Do not make student-loan payments if you're in one of these 3 groups of borrowers
▼ + stars: | 2023-10-10 | by ( Ayelet Sheffey | ) www.businessinsider.com time to read: +5 min

AdvertisementAdvertisementStudent-loan payments have resumed, but not all federal borrowers should be making payments. However, it's in some borrowers' best interests to not make payments — even if their servicer has given them a billing statement. While borrowers can submit those claims individually, the Education Department has also announced relief for groups of defrauded borrowers without them needing to take any action themselves. AdvertisementAdvertisementIf borrowers received notice of relief but are still in repayment status, they can contact their servicer, or Federal Student Aid's ombudsman. However, interest will still accrue during that time, and the Education Department cannot control how credit scoring companies interpret the missed payments.

Persons: —, Joe Biden's, servicers Organizations: Service, Joe Biden's Education Department, Education Department, Corinthian Colleges Locations: it's, Cardona

U.S. President Joe Biden speaks about his plans for continued student debt relief after a U.S. Supreme Court decision blocking his plan to cancel $430 billion in student loan debt, at the White House in Washington, U.S. June 30, 2023. The rule is separate from Biden's more sweeping student debt relief plan. The Supreme Court in June blocked his administration from canceling $430 billion in student loan debt for 43 million borrowers. The Democratic president has since announced plans to provide relief for student loan borrowers using a different approach. CCST sued in February after the Education Department in October finalized a rule changing a "borrower defense to repayment" program that allows students to seek debt relief if their schools mislead them.

Persons: Joe Biden, Leah Millis, Biden, Edith Jones, Kyle Duncan, Cory Wilson, CCST, The Biden, Nate Raymond, Alistair Bell Organizations: U.S, Supreme, White, REUTERS, ITT Educational Services, Circuit, Colleges, Schools of Texas, Democratic, Republican, U.S . Department of Education, Education Department, Corinthian Colleges, ITT Technical Institute, The, Thomson Locations: Washington , U.S, New Orleans, Boston

☆ 7,400 student-loan borrowers hurt by a school's 'widespread misconduct' are getting $130 million in debt wiped out, Biden's Education Department says
▼ + stars: | 2023-07-25 | by ( Ayelet Sheffey | ) www.businessinsider.com time to read: +5 min

The Education Department announced it will be wiping out $130 million in student debt for 7,400 borrowers. On Tuesday, the Education Department announced it will deliver $130 million in debt cancellation to 7,400 students who were enrolled at Colorado-based locations of CollegeAmerica between January 1, 2006 and July 1, 2020. The department said it will begin notifying borrowers eligible for relief in August, after which those borrowers will see their remaining balances wiped out. In 2022, CEHE sued the Education Department, accusing it of forcing the company to close so students would qualify for debt relief. And in total, we have approved $116 billion in debt relief for over 3.4 million Americans," he continued.

Persons: Joe Biden's, Richard Cordray, CEHE, Philip Weiser, –, Biden, we've Organizations: Education Department, Service, Joe Biden's Education Department, Center, Excellence, Higher, Aid, Colorado Attorney, Corinthian Colleges, CollegeAmerica Locations: Colorado, CollegeAmerica, Wall, Silicon, CollegeAmerica Colorado

☆ Biden administration erases $130 million in student loans for 7,400 borrowers
▼ + stars: | 2023-07-25 | by ( Greg Iacurci | ) www.cnbc.com time to read: +1 min

The White House on Tuesday forgave $130 million in student debt for 7,400 borrowers who attended CollegeAmerica, a now-defunct institution in Colorado that officials said misled borrowers about their loans and career prospects. He had petitioned the Biden administration last year to erase CollegeAmerica student debt. More from Personal Finance:Is Biden's $39 billion student loan forgiveness action legal? When student debt payments restart, your loan type will make a big differenceCan employers be a firewall for student loan borrowers? The White House has approved $14.7 billion in debt relief for 1.1 million student loan borrowers "whose colleges took advantage of them or closed abruptly," like those at CollegeAmerica, Biden said.

Persons: CollegeAmerica, Joe Biden, Phil Weiser, Biden, Weiser Organizations: Finance, U.S . Department of Education, Center, Excellence, Higher, Corinthian Colleges, DeVry University Locations: Colorado, CollegeAmerica

your moneyThere are still plenty of ways to get your student debt wiped away. That’s because the Supreme Court’s disapproval of the plan does not change laws and regulations that already give many federal student loan borrowers an escape hatch. What follows is a list of ways to eliminate your federal student loan balance aside from paying in full. If you know someone who is struggling with student loan debt, suggest that the borrower review every last option. Bankruptcy DischargeYes, you can discharge your student loan debt by filing for personal bankruptcy.

Persons: Biden’s, —, It’s, Biden, Tara Siegel Bernard, Ann Carrns, Ann, Donald J, Trump, Tara Organizations: U.S . Department of Education, Education Department, Public, Westwood College, Corinthian Colleges, DeVry University, ITT Technical Institute, Social Security Administration, Department of Veterans Affairs Locations: forbearance

☆ How to Pay Off Your Student Loans
▼ + stars: | 2023-06-28 | by ( Rebecca Safier | ) www.wsj.com time to read: +13 min

Here’s how to pay off student loans in a way that works for your budget and goals. Look into specialized loan forgiveness programsWhile the Supreme Court hasn’t shared its ruling on Biden’s widespread forgiveness initiative yet, there are other options for loan discharge, such as Public Service Loan Forgiveness and Teacher Loan Forgiveness. You can pay off federal student loans early, as there’s no student loan prepayment penalty. If you want to retain access to federal protections, it wouldn’t make sense to refinance your federal student loans. In the end, there’s no single right way to pay off student loans faster.

Persons: Rebecca Safier, Biden’s, ”, Robert Farrington, you’re, you’ve, Michael Lux, “, Farrington, Autopay, servicers, autopay, servicer Nelnet, hasn’t, Adam Minsky, You’ll, Mark Kantrowitz Organizations: Education Department, College Investor, millennials, Federal, Aid, Grad, Student Loan Sherpa, Student Aid, autopay, Peace Corps, Corinthian, Education Locations: “, SavingforCollege.com

☆ Colleges ask Supreme Court to halt $6B student loan debt settlement
▼ + stars: | 2023-04-05 | by ( Lawrence Hurley | ) www.cnbc.com time to read: +3 min

People rally in support of the Biden administration's student debt relief plan in front of the the U.S. Supreme Court on February 28, 2023 in Washington, DC. Colleges challenging a class-action settlement that could lead to student loans being canceled for hundreds of thousands of borrowers on Wednesday asked the Supreme Court to put the case on hold. The application at the Supreme Court was filed by Everglades College, Lincoln Educational Services Corporation and American National University. They asked the Supreme Court to put Alsup's ruling on hold and consider hearing the case on an accelerated basis. In the separates cases involving Biden's debt relief plan, the Supreme Court in February appeared skeptical that it was lawful.

☆ Biden could protect student-loan borrowers from being stuck with useless degrees and a lot of debt by bringing back a rule Trump ditched, progressive lawmakers say
▼ + stars: | 2023-04-03 | by ( Ayelet Sheffey | ) www.businessinsider.com time to read: +5 min

It included reinstating and strengthening the gainful employment rule, which protects student-loan borrowers from unaffordable debt post-graduation. Biden delayed implementation of the rule until 2024 and is expected to put out a proposal this month. "The Gainful Employment rule is a cornerstone of our ambitious regulatory agenda," the spokesperson said. Along with reinstating gainful employment, lawmakers and advocates have also called for the executives of for-profit schools to be held liable for costs when the school shuts down, rather than taxpayers and borrowers. Now, lawmakers and advocates await the department's gainful employment proposal.

☆ Student-loan borrowers just got an added layer of protection from schools that take advantage of them 'to make a quick buck'
▼ + stars: | 2023-03-15 | by ( Ayelet Sheffey | ) www.businessinsider.com time to read: +3 min

It will be using secret shoppers to identify misleading behavior that push students to take on debt. Findings from secret shopping will be used as evidence to support any investigation the department will conduct into a school that could be engaging in predatory behavior. "Secret shopping is another tool in FSA's toolbox as we expand our oversight work to hold predatory schools accountable," FSA Director Richard Cordray said in a statement. "Our focus—as always—is to ensure that students, borrowers, families, and taxpayers are not being preyed upon to make a quick buck." "Consequences for schools that violate these prohibitions could include the termination or limitation of a school's participation in the Department's federal student aid programs," Kristen Donoughue, FSA's chief enforcement officer, wrote in the blog.

☆ Canceling student debt for millions of borrowers 'cheated by for-profit colleges' isn't enough, Biden's Education Department says — it's time for the top executives to pay up
▼ + stars: | 2023-03-06 | by ( Ayelet Sheffey | ) www.businessinsider.com time to read: +4 min

The Education Department released new guidance to hold executives of for-profit colleges financially liable for unpaid costs to the government. When a school shuts down or is accused of fraud, taxpayers or students often pay the costs. Last week, the Education Department released new guidance on implementing the Education Secretary's authority to hold executives of private colleges financially liable for the cost of unpaid debts defrauded students took on. "The Biden-Harris Administration is canceling the loans of more than a million borrowers cheated by for-profit colleges. But too often, the owners and executives of these colleges escape liability," Under Secretary of Education James Kvaal said in a statement.

☆ It just got easier for defrauded student-loan borrowers to apply for debt cancellation
▼ + stars: | 2023-02-06 | by ( Ayelet Sheffey | ) www.businessinsider.com time to read: +4 min

The Education Department launched a new website to help defrauded student-loan borrowers apply for debt relief. While this website may ease the application process, many defrauded borrowers continue to wait for relief. Approval of those claims means the department will discharge any debt the student took out to attend the school in question. It includes information on reasons borrowers apply for borrower defense, what type of misconduct qualifies for debt relief, specific details on information borrowers should include in their claims, and what happens after a borrower applies. A section of Federal Student Aid's new borrower defense website detailing information to include in a claim.

☆ Student-loan borrowers should not be 'scammed out of an education and into a mountain of debt,' 3 Democratic lawmakers say. Here's how their new bill would help prevent that.
▼ + stars: | 2022-12-01 | by ( Ayelet Sheffey | ) www.businessinsider.com time to read: +4 min

Three Democratic lawmakers introduced a bill to increase oversight of for-profit colleges. The bill would create a committee to oversee the industry and monitor potential predatory behavior. For-profit schools have come under scrutiny for loading students up with debt they cannot pay off. "We cannot let this industry continue to take advantage of students without proper federal oversight." Along with Democratic lawmakers, President Joe Biden's Education Department has taken steps to increase oversight over the for-profit industry.

☆ Student-loan borrowers defrauded by Corinthian were promised $5.8 billion in relief 'immediately.' 6 months later Biden's Education Department says it'll take 'some time.'
▼ + stars: | 2022-11-25 | by ( Ayelet Sheffey | ) www.businessinsider.com time to read: +6 min

In June, the Education Department approved a $5.8 billion loan discharge for former Corinthian students. Six months later, borrowers are still waiting, and the department said relief will now take "some time." Education Secretary Miguel Cardona said at the time that the impacted Corinthian borrowers will see their loans "immediately forgiven." This prompted Biden's Education Department to reform the process. Still, aside from the June announcement of relief, none of the Education Department's recent actions are giving Corinthian borrowers any certainty.

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