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Read previewPresident Joe Biden's Education Department is giving student-loan borrowers more time to get closer to debt cancellation. On Wednesday, the Education Department announced that it's extending the deadline for borrowers to benefit from the one-time account adjustments. To receive the account adjustment automatically, borrowers must be in the federal direct loan program or have federally held loans in the Federal Family Education Loan program. "FFEL borrowers should consolidate as soon as possible in order to receive this benefit that has already provided forgiveness to nearly 1 million borrowers." Since the adjustments began, according to the department, 996,000 borrowers have received $49.2 billion in debt relief.
Persons: , Joe Biden's, Education James Kvaal Organizations: Service, Joe Biden's Education, Education Department, Public, Business, Family Education, Education, Federal, Aid Locations: PSLF
More than two weeks after a deadline passed for federal loan borrowers seeking debt relief, the Education Department has extended the offer, giving millions of borrowers a fresh shot at aid. The department said on Wednesday that borrowers would now have until June 30 to consolidate commercially held education debt under the Federal Family Education Loan Program — loans originally from private lenders — or Perkins loans into new direct loans, which are held by the Education Department. “The department is working swiftly to ensure borrowers get credit for every month they’ve rightfully earned toward forgiveness,” said James Kvaal, the under secretary of education. The move is part of the Biden administration’s effort to aggressively cancel education debts through longstanding relief programs and by easing bureaucratic barriers. One of the trickiest challenges has been reaching borrowers with loans through the Federal Family Education Loan Program, a lingering vestige of a previous federal student loan system.
Persons: , James Kvaal, Biden Organizations: Education Department, Federal Family Education, Federal Family Education Loan Program
The U.S. Department of Education announced Tuesday the interest rates on federal student loans for the 2024-2025 academic year. The interest rate on federal direct undergraduate loans will be 6.53%. For graduate students, loans will come with an 8.08% interest rate, compared with the current 7.05%. Plus loans for graduate students and parents will have a 9.08% interest rate, an increase from 8.05% now. The rise in interest rates could complicate the Biden administration's efforts to get the student loan crisis under control and relieve borrowers of the pain of interest accrual, experts say.
Persons: Mark Kantrowitz, Kantrowitz Organizations: US Department of Education, Washington , D.C, U.S . Department of Education, Biden Locations: Washington ,
Are many young people distressed about the war in Gaza? Of the 16 issues the poll asked 18- to 29-year-olds about, those two were ranked last in importance, behind issues such as inflation, immigration, housing and protecting democracy. Indeed, as The Gazette noted, when it comes to the relationship between Biden and young voters, “It’s complicated.”People watching student protests spread across college campuses in recent weeks might be surprised by that notion, but it’s important to remember that reactions to the protests can work in different ways. I believe in students’ right to protest — peacefully — even as I acknowledge that protests are often imperfect, and the actions of some who protest are regrettable. I also understand that protesting students are only a fraction of all students, and students are only a fraction of all young voters.
Persons: Biden’s, Biden, , Organizations: Harvard, Harvard Gazette, Gazette Locations: Gaza, Israel
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 Images'I plan on dying with student loan debt'"I think this is a great idea. I am 52 years old with a lot of student loan debt from years ago. I plan on dying with student loan debt. "As an African American millennial from River Rouge, MI, I believe it is crucial to support and approve student loan debt relief proposals.
Persons: Joe Biden, Andrew Caballero, Reynolds, Biden, they'll, Nobody Organizations: Madison Area Technical College, AFP, Getty Locations: Madison , Wisconsin, River Rouge , MI
Sen. Elizabeth Warren led a group of Democrats in pushing for increased Federal Student Aid funding. AdvertisementA group of Democratic lawmakers is pointing to one key thing that will help student-loan borrowers and families navigate financial aid: more funding. Advertisement"FSA's responsibilities have increased to protect students and borrowers, but its federal funding has remained stagnant," they wrote. AdvertisementWhen it comes to the FAFSA, both Republican and Democratic lawmakers have been highly critical of the way the Education Department has facilitated the rollout. The Education Department is also in the process of crafting its broader student-debt relief plan, which is currently in the public comment period.
Persons: Sen, Elizabeth Warren, , Massachusetts Sen, Tammy Baldwin, Shelley Moore Capito, Joe Biden's, Biden, Secretary Miguel Cardona, Cardona Organizations: Federal Student Aid, Service, Democratic, Massachusetts, Sens, Republicans, Business, Education Department, Public, Republican, Secretary
Ahead of November, young Black voters are indicating that their turnout could fall below 2020 levels. A Washington Post-Ipsos poll revealed that only 41% of young Black voters said they were certain to vote this year. NEW LOOK Sign up to get the inside scoop on today’s biggest stories in markets, tech, and business — delivered daily. download the app Email address Sign up By clicking “Sign Up”, you accept our Terms of Service and Privacy Policy . This story is available exclusively to Business Insider subscribers.
Persons: , Joe Biden, buoying, Biden Organizations: Washington, Black, Service, White, Democratic, Pew Research, Business Locations: Gaza
There are two weeks left for the public to comment on Biden's new student-debt relief plan. Once the public comment period ends, the administration will move toward final implementation. AdvertisementThe American people have just two weeks left to give President Joe Biden's administration input on its new student-loan forgiveness plan. Related storiesThe plan is now in the public comment period, and there are two weeks left for anyone who wishes to provide input on the administration's proposals. AdvertisementThe comments are available to be viewed publicly, and some of them were supportive of Biden's plan.
Persons: , Joe Biden's, Biden's, Andrew Bailey, Biden Organizations: Service, Education Department, Federal Register Locations: Missouri
Applications to the Public Service Loan Forgiveness program are paused through July. During this time, borrowers can still submit applications, but they will not be processed. download the app Email address Sign up By clicking “Sign Up”, you accept our Terms of Service and Privacy Policy . AdvertisementSome student-loan borrowers hoping for debt relief might have to wait a few months. Beginning on May 1, the Education Department placed a pause on any processing of applications to the Public Service Loan Forgiveness program, which forgives student debt for government and nonprofit workers after ten years of qualifying payments.
Persons: It's, MOHELA, Organizations: Public, Service, Education Department, MOHELA, Business
The Education Department announced $6.1 billion in student-debt relief or 317,000 borrowers. The relief applies to borrowers who attended any Art Institute campus from January 1, 2004, to October 16, 2017. Investigations found that the Art Institutes misled students about career prospects and salaries. The Art Institutes were a for-profit system that prompted investigations from the attorneys general of Iowa, Massachusetts, and Pennsylvania. More broadly, the Education Department is working to implement its broader student-loan forgiveness plan after the Supreme Court struck down its first attempt.
Persons: , Joe Biden's, Richard Cordray, Biden Organizations: Education Department, Art Institute, Investigations, Art, Service, Joe Biden's Education Department, Art Institutes, Aid, Corinthian College, Public Locations: Iowa , Massachusetts, Pennsylvania
The pro-Palestinian movement in the US today is a far cry from the anti-war movement of the 1960s, but the angst and frustration of young Americans is clear and growing. That figure was dragged down by the fact that just 37% of younger voters said they were satisfied. Most see Biden’s presidency as a ‘failure’Biden is under water in every issue asked about in the CNN poll, according to Jennifer Agiesta, CNN’s polling director. And that’s the frustration.”Video Ad Feedback 'We're in trouble': Pollster reacts to his discussion with young voters 02:02 - Source: CNNUnhappy with the direction of the countryIt’s not just Biden and politics that are turning off young Americans. Just 38% of younger Americans in CNN’s poll said they are satisfied with their personal financial situation.
Persons: Joe Biden’s, Donald Trump, Trump, Biden, SSRS, , Robert F, Kennedy Jr, Kennedy, ’ Biden, Jennifer Agiesta, Agiesta, it’s, Republican pollster Frank Luntz, Erica Hill, ” Luntz, Joe Biden, , Pollster Organizations: CNN, Democratic, Israel, Trump, Biden, Fox News, Pew Research, Republican, Harvard University, Harvard Locations: Chicago, CNN’s, Israel, Gaza
The nation’s top student aid official is stepping down, the Education Department said Friday, after the disastrous rollout of a new financial aid form that upended the college admissions process for millions of students this year. Richard Cordray, who took over as the leader of the Federal Student Aid office in 2021, will hand over his duties in June, Education Secretary Miguel A. Cardona said in a statement. Mr. Cordray’s departure coincides with a fraught admissions season. College administrators, students and members of Congress across the political spectrum have rebuked the Education Department for mismanaging a redesign of the Free Application for Federal Student Aid form, throwing the usual college admissions process into disarray. In his role, Mr. Cordray also oversaw a variety of other programs, including many parts of the Biden administration’s sweeping vision of student debt relief for millions of borrowers through loan forgiveness and income-driven repayment plans.
Persons: Richard Cordray, Miguel A, Cardona, Cordray Organizations: Education Department, Federal, Aid, College, mismanaging, Biden
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
US President Joe Biden speaks about student loan debt relief at Madison Area Technical College in Madison, Wisconsin, April 8, 2024. The aid package is narrowerBiden's 2020 campaign promise to erase student debt was thwarted at the Supreme Court in June. Biden had tried to forgive the debt of nearly all 40 million federal student loan borrowers, with many people getting up to $20,000 in cancellation. As a result, for critics of broad student loan forgiveness, Biden's new plan looks a great deal like his first. Biden's first forgiveness plan was based on the Higher Education Relief Opportunities for Students Act, or HEROES Act, of 2003.
Persons: Joe Biden, Andrew Caballero, Reynolds, Joe Biden's, Biden didn't, Biden, who've, Biden's, Andrew Bailey, X, Bailey, There's, didn't, John Roberts, Lyndon B, Johnson, Sen, Elizabeth Warren, Warren Organizations: Madison Area Technical College, AFP, Getty, U.S . Department of Education, Republican, Higher, Higher Education, Act, Biden, ., of Education Locations: Madison , Wisconsin, Missouri, . Nebraska
Joel Lambdin finished graduate school in 1998 — but as a professional musician, he was hardly making enough money to pay off his student loans and his other bills. So Lambdin, now 49, said his only option to make ends meet was to put his student loans on forbearance — in which he was not making payments, but interest was still accumulating. But he grew to realize that the only way he could make a significant dent in his student loans was by switching careers. The Biden-Harris Administration has forgiven your federal student loan(s) listed below with Aidvantage in full." When it comes to student-loan forgiveness, some borrowers told BI that their servicer made a mistake with the forgiveness, reinstating their payments months later.
Persons: Joel Lambdin, Lambdin, Aidvantage, Harris, I've, servicers, he's Organizations: Service, Business, Public, BI, Harris Administration, Education Department, The Education Department Locations: forbearance, India
A major private student-loan company is leaving the servicing industry. But before that happens, a group of Democratic lawmakers want it to give some borrowers debt relief. On Wednesday, Sen. Elizabeth Warren led eight of her Democratic colleagues in sending a letter — first reviewed by Business Insider — to Navient's CEO David Yowan, requesting that the company cancel "decades-old predatory private student loans" using a consumer protection law established by the Federal Trade Commission. AdvertisementBut there might be an avenue to still get those borrowers debt cancellation. "Navient should stop making borrowers apply for relief and instead automatically cancel student debt using information the company already has about whether borrowers attended schools that would entitle them to relief," they wrote.
Persons: Sen, Elizabeth Warren, David Yowan, Navient, Warren, Holder Organizations: Service, Democratic, Business, Federal Trade Commission, Family Education, Education Department, Minnesota Attorney Locations: Minnesota, MOHELA, Navient
It's the next step in implementing a broader version of debt relief for borrowers. Comments can be submitted to the Federal Register here, which the Education Department will then review. While lawsuits have yet to be formally filed against Biden's administration, Missouri's Attorney General Andrew Bailey wrote on X in response to Biden's relief proposals: "See you in court." And some experts said a conservative Supreme Court could likely rule like they did with Biden's first debt relief plan, striking it down. Following the public comment period, the Education Department will review comments and could choose to adjust their proposals based on the feedback they receive.
Persons: , Joe Biden, Education James Kvaal, Andrew Bailey, Biden's, Cary Coglianese, it's, It's Organizations: Service, Education Department, Federal, Higher, Department, Education, Business, University of Pennsylvania
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
“I’ve had to just put all of my dreams aside and focus on surviving day to day,” Jes Evans, 35, told CNN. Many who responded said they were nearing retirement age but couldn’t imagine being able to stop working, saying they would take their debt to their grave. The White House has forgiven a staggering $153 billion in federal student loan debt, giving a financial lifeline to millions of borrowers. Davis graduated from chiropractic college in 1986, with about $30,000 in debt from federal student loans. He isn’t bitter about it, and he’s not counting on a magic wand to come and zap his debt away.
Persons: , “ I’ve, ” Jes Evans, Evans, ” Evans, , Courtney Brown, they’re, ” Brown, Brown, , Gallup, Josh, He’d, ” Josh, he’s, Amy Coody, she’s, that’s, I’m, Ralph Davis, Davis, , ” Davis Organizations: New, New York CNN, Gallup Lumina, CNN, United States, Lumina Foundation, Biden, Department of Education, Public Locations: New York, Pittsburgh, United, Oregon, Wetumpka , Alabama, Savannah , Georgia
Biden released the draft text for his new student-loan forgiveness plan. The Education Department aims to begin implementing the relief as early as this fall. download the app Email address Sign up By clicking “Sign Up”, you accept our Terms of Service and Privacy Policy . AdvertisementMillions of student-loan borrowers are moving closer to President Joe Biden's new plan for debt cancellation. On Tuesday, the Education Department released its first set of draft rules for Biden's second attempt at student-debt relief after the Supreme Court struck the first plan down.
Persons: Biden, , Joe Biden's Organizations: Department, Service, Education Department, Higher, Business
New details for President Joe Biden's student-loan forgiveness plan are out — and it's already shaping up to be a rocky road to implementation. Related storiesCoglianese is referring to a rule known as the Chevron doctrine, the fate of which is currently awaiting a Supreme Court ruling. AdvertisementHerrine said he expects the same groups who brought the cases against Biden's first debt relief plan to challenge this second one. "The administration is certainly still facing a very skeptical Supreme Court," Coglianese said. "Even though it's a different statute, it's still a skeptical Supreme Court.
Persons: Joe Biden's, Biden's, Biden, , Cary Coglianese, Coglianese, Chevron, Raimondo, Luke Herrine —, Herrine, Andrew Bailey, it's, It's Organizations: Service, Education Department, Higher, Business, The Education Department, University of Pennsylvania, Loper Bright Enterprises, National Marine Fisheries, Supreme, Biden, Chevron, University of Alabama — Locations: Chevron, Missouri
When President Biden announced his plan to provide student debt relief for 43 million borrowers nearly two years ago, there was a piece to his program that attracted less attention: a new student loan repayment program that would cut monthly payments in half for millions. The repayment program, called SAVE, was meant to become a permanent fixture of the federal student loan system, offering a more affordable path to repayment, particularly for lower-income borrowers. But two groups of Republican-led states have filed separate lawsuits to block the SAVE program — including many of the states that challenged Mr. Biden’s $400 billion debt cancellation plan, which was struck down by the Supreme Court last year. Missouri, along with six other states, filed suit on Tuesday in the U.S. District Court for the Eastern District of Missouri, seeking to upend the program. Both suits argue that the administration has again exceeded its authority, and the repayment plan is just another backhanded attempt to wipe debts clean.
Persons: Biden, Biden’s Organizations: Republican, Eastern, of Locations: Missouri, U.S, of Missouri, Kansas
Biden announced another $7.4 billion in student-debt relief for 277,000 borrowers. It impacts borrowers on the SAVE plan, along with others on income-driven repayment plans and PSLF. The new relief comes just after Biden released new details for his broader student-debt relief plan. On Friday, President Joe Biden and the Education Department announced that 277,000 more borrowers will get $7.4 billion in debt relief. Still, the administration is moving forward with more targeted efforts for debt cancellation through its fixes to repayment plans, recently announcing $1.2 billion in relief for 153,000 borrowers through the SAVE plan.
Persons: Biden, , Joe Biden, Education James Kvaal, Biden's Organizations: Service, Education Department, Public, Education, SAVE, Biden, Higher, GOP, Republican
The Biden administration announced an additional $7.4 billion in student loan cancellations for some 277,000 borrowers on Friday, building on plans announced earlier this week to provide debt relief for millions of borrowers by the fall if new rules the White House has put forward hold. It also comes as President Biden aims to shore up support with young voters who may be disproportionately affected by soaring education costs, but who may be drifting away over his policy on Israel and the war in Gaza. Taken together with previous actions, the announcement on Friday brought the total to $153 billion in debt forgiven, touching around 4.3 million borrowers so far, the administration said. The administration hopes to forgive some or all loans held by some 30 million borrowers total. The administration said the 277,000 people it identified would be notified by email on Friday.
Persons: Biden Organizations: Biden Locations: Israel, Gaza
US President Joe Biden speaks about student loan relief at Madison College in Madison, Wisconsin, on April 8, 2024. Andrew Caballero-reynolds | AFP | Getty ImagesThe Biden administration is moving ahead quickly with its new student loan forgiveness plan, with hopes of starting to wipe out people's debts as soon as this fall. Student loan forgiveness falls into that category, he said. Almost half of voters in a recent survey, or 48%, said canceling student loan debt is an important issue to them in the 2024 presidential and congressional elections. Issues like student loan forgiveness, which present a sharp contrast between Democrats and Republicans, are more likely to impact the election.
Persons: Joe Biden, Andrew Caballero, reynolds, Biden, Mark Kantrowitz, Kantrowitz, Gen, Donald Trump, Michael M, George W, Bush, Trump, Mark Organizations: Madison College, AFP, Getty, Republicans, Republican, Santiago, Public, Supreme Locations: Madison , Wisconsin, New York City
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