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☆ After student loan forgiveness, the Education Dept. is sending some borrowers refunds. What to know
▼ + stars: | 2024-02-22 | by ( Annie Nova | ) www.cnbc.com time to read: +3 min

So far, almost 3.9 million borrowers have gotten their education debt erased, totaling $138 billion in relief . Under the U.S. Department of Education's income-driven repayment plans, student loan borrowers are entitled to get any of their remaining debt forgiven after 20 or 25 years. The companies earn a fee per borrower per month, which advocates say discourages transparency around loan forgiveness opportunities. "Loan servicers were not tracking the number of qualifying payments, and the automatic forgiveness was not occurring," Kantrowitz said. Scott Buchanan, executive director of the Student Loan Servicing Alliance, a trade group for federal student loan servicers, denied that the companies benefit by veering from the government's orders.

Persons: Joe Biden, Culver City Julian, Mark Kantrowitz, servicers, Nadine Chabrier, Kantrowitz, he'd, Scott Buchanan, Buchanan, Biden, who've, Persis Yu Organizations: Culver City, Culver City Julian Dixon Library, Education Department, U.S . Department of Education, U.S . Department, Center for, Lending, The Education, Finance, IRS, Student Loan, Alliance, Student, Protection Locations: Culver City , California, U.S

☆ These borrowers are likely to be eligible for Biden's new student loan forgiveness plan
▼ + stars: | 2024-02-20 | by ( Annie Nova | ) www.cnbc.com time to read: +3 min

Sean Rayford | Getty ImagesSince the Biden administration's first student loan forgiveness plan was rejected at the Supreme Court, it has been working on creating a new, legally viable relief package. The alternative plan, which has become known as Biden's "Plan B," could forgive the student debt for as many as 10 million people, according to one estimate. While Biden first attempted to cancel student debt through an executive order, he has now turned to the rulemaking process. Borrowers in repayment for 20 years or moreThose who have been carrying their student debt for decades may also benefit. watch nowStudent loan servicers also earn a fee per borrower per month, which advocates say discourages transparency around loan forgiveness opportunities.

Persons: Joe Biden, Sean Rayford, Biden, Persis Yu, George W, Bush, servicers, Yu Organizations: Flex, Biden administration's, Supreme, U.S . Department of Education, Student, Protection, Education Department, Public, Consumer Financial, Bureau Locations: West Columbia, South Carolina

☆ 10 signs the US economy may struggle in the next year
▼ + stars: | 2023-09-14 | by ( Madison Hoff | Noah Sheidlower | ) www.businessinsider.com time to read: +10 min

By raising interest rates, the Fed "wants us to buy fewer cars. There are signs that a drop in savings could be making it harder for Americans' to keep up with paying off debt. Long-term interest rates rising for non-economic reasonsLong-term interest rates are on the rise, even though economic data on the whole is improving. Higher-interest payments for the US governmentSløk also noted higher interest payments for the US government as another downside risk to the outlook. Projections published by the Congressional Budget Office show increasing estimates for the upcoming decades for federal interest payments as a share of GDP.

Persons: Torsten Sløk, Sløk, Paul Krugman, Persis Yu, Jan Hatzius, Goldman Sachs, Hatzius, it's, , you've, Andy Kiersz, That's, Brent Organizations: Service, Apollo Global Management, NYU Stern School of Business, Federal Reserve, San, San Francisco Fed, Student, Protection, CNBC, New York Fed, Banking, West Texas, Labor Statistics, US, Fitch, Congressional Locations: Wall, Silicon, San Francisco, China, Japan, Europe, Germany

☆ Some workers are going thousands of dollars into debt to pay for their own training. A federal watchdog is scrutinizing the practice of chasing employees for money after they leave.
▼ + stars: | 2023-07-20 | by ( Ayelet Sheffey | Juliana Kaplan | ) www.businessinsider.com time to read: +5 min

A new report from the Consumer Financial Protection Bureau looks at employer-driven debt. The report finds that employers are saddling workers with thousands in debt for training and supplies. On Thursday, the Consumer Financial Protection Bureau released a report detailing the impact of training repayment agreement provisions, or TRAPs. The watchdog said it will continue to evaluate how companies are using TRAPs to determine whether they are violating consumer financial laws. "TRAPs impose significant financial burdens on workers and foster monopsony in labor markets by reducing worker mobility and bargaining power.

Persons: onboarding, hasn't, Nurse E, E, …, Persis Yu Organizations: Consumer Financial, Service, Biden, Federal Trade Commission, FTC, Protection Locations: Wall, Silicon, America

☆ Biden administration announces student debt forgiveness for 804,000 federal borrowers—here's who qualifies
▼ + stars: | 2023-07-14 | by ( Kamaron Mcnair | In Kamaronmcnair | ) www.cnbc.com time to read: +1 min

The Biden administration announced Friday it would be automatically forgiving student debt for 804,000 federal borrowers as a result of fixes to income-driven repayment plans. The borrowers — who will be notified of their relief in the coming days, the administration said — will have a total of $39 billion in debt forgiven just weeks before they were set to begin making payments again. The new wave of relief brings the Biden administration's amount of total student debt forgiven — which has included Public Service Loan Forgiveness, disability discharges and relief for defrauded students — up to more than $116.6 billion dollars. Student debt relief advocates celebrated the administration's announcement, and now call on officials to keep the momentum going, especially given last month's defeat of Biden's broader student debt forgiveness program in the Supreme Court. "Our student loan system is riddled with structural incompetence, and vulnerable, low-income, and Black and Bbrown borrowers face the harshest effects.

Persons: —, Education Miguel Cardona, Persis Yu, Here's Organizations: Biden, Education, Student, Protection

☆ Supreme Court strikes down Biden's student loan forgiveness plan
▼ + stars: | 2023-06-30 | by ( Annie Nova | ) www.cnbc.com time to read: +4 min

Supporters of student debt forgiveness demonstrate outside the US Supreme Court on June 30, 2023, in Washington, DC. Olivier Douliery | AFP | Getty Images"Under the Secretary's plan, roughly half of all federal borrowers would have their loans completely discharged," Roberts wrote. How student loan forgiveness got to the Supreme CourtSupreme Court justices listen to arguments. watch nowTwo of those legal challenges made it to the Supreme Court: one brought by six GOP-led states — Nebraska, Missouri, Arkansas, Iowa, Kansas and South Carolina — and another backed by the Job Creators Network Foundation, a conservative advocacy organization. While the justices' decision largely matched the predictions of many legal experts, some saw it going another way, especially after the Supreme Court heard oral arguments for the two challenges to the president's plan at the end of February.

Persons: Olivier Douliery, Roberts, Persis Yu, who'd, Biden, Bill Hennessey, he'd, Grant, overreach, Jed Shugerman, Elizabeth Prelogar Organizations: AFP, Getty, U.S . Department of Education, Consumer, Student, Protection, Supreme, U.S . Department of Justice, Heroes, Republican, GOP, South Carolina —, Job, Network Foundation Locations: Washington ,, Missouri, delinquencies, U.S, — Nebraska , Missouri , Arkansas , Iowa , Kansas, South Carolina, Fordham

☆ It's official: Student loan payments will restart in October, Education Department says
▼ + stars: | 2023-06-20 | by ( Annie Nova | ) www.cnbc.com time to read: +5 min

The Education Department posted on its website that "payments will be due starting in October," and a recent law passed by Congress will make changing that plan difficult. As a result of the policy, the average borrower likely saved around $15,000 in student loan payments, Kantrowitz said. They sought to repeal Biden's executive action granting student loan forgiveness, but the Biden administration refused to agree to that. Interest will pick up in September, payments in OctoberThe Education Department says borrowers will be expected to make their first post-pause payment in October. For those who still have a balance after the relief, the Education Department has said it plans to "re-amortize" borrowers' lower debts.

Persons: Persis Yu, Donald Trump, Mark Kantrowitz, Kantrowitz, Joe Biden, Biden, Miguel Cardona, That's Organizations: Istock, U.S . Department of Education, Education, Congress, Student, Protection, Republicans, Finance, Department, Biden, Kantrowitz, Education Department

☆ 1 in 5 student loan borrowers at risk of struggling when payments resume, consumer watchdog says
▼ + stars: | 2023-06-09 | by ( Annie Nova | ) www.cnbc.com time to read: +3 min

Yuliya Taba | E+ | Getty ImagesThe Consumer Financial Protection Bureau is warning that roughly 1 in 5 student loan borrowers have financial risk factors that could cause them to struggle when their payments resume in the fall. What to do if Biden's student debt plan is struck downHere's how things go so bad with student loan debt in the U.S. Student loan borrowers are deeper in debtMeanwhile, more than half of student loan borrowers expected to resume their payments have higher monthly debt-related expenses than they did before the pause on bills began (excluding their student debt or mortgage payment), the CFPB writes. While federal student loan payments were suspended, many borrowers probably used their freed-up cash to take on more debt, Kantrowitz said. However, the CFPB's findings show millions of student loan borrowers will resume their payments in a more precarious financial situation.

Persons: Yuliya, Joe Biden, Kentia Elbaum, Justice Barrett, Mark Kantrowitz, Kantrowitz, Persis Yu Organizations: Financial, U.S . Department of Education, Finance, Consumer, Supreme, Student, Protection Locations: U.S, delinquencies

☆ Borrowers brace for student loan bills to resume — '$600 a month, where is that going to come from?'
▼ + stars: | 2023-06-04 | by ( Annie Nova | ) www.cnbc.com time to read: +6 min

As a result of the policy, the average borrower likely saved around $15,000 in student loan payments, Kantrowitz said. ″[T]he one-time student loan debt relief program was intended to avoid" that problem, he added. Yet consumer advocates say the troubles for student loan borrowers are far from over. "Borrowers are not ready to resume payments," said Persis Yu, deputy executive director at the Student Borrower Protection Center. To be able to afford his student loan payment in September, Berlet plans to cut back on how much food he buys.

Persons: Donald Trump, Mark Kantrowitz, Kantrowitz, James Kvaal, Joe Biden's, Mark, Kvaal, Kevin McCarthy, Biden, McCarthy, Persis Yu, Yu, they'd, Paul, Berlet, he'll, Brooks, didn't, wasn't, Paul Berlet Organizations: Twitter, Student, Protection, Kantrowitz, Education Department, Pennsylvania Higher Education Assistance Agency, Granite State Locations: U.S, Pennsylvania, Granite, Wilmington , Delaware

☆ Student debt forgiveness heads to the Supreme Court—here's what borrowers need to know
▼ + stars: | 2023-02-28 | by ( Kamaron Mcnair | ) www.cnbc.com time to read: +4 min

Activists and students protest in front of the Supreme Court during a rally for student debt cancellation in Washington, DC, on February 28, 2023. The Supreme Court hears oral arguments this week against and for President Joe Biden's student debt forgiveness plan. The Biden administration has appealed both rulings, maintaining the president is within his authority to cancel federal student debt. Who will benefit the most from student debt forgiveness? What happens if the Supreme Court stops debt forgiveness?

☆ What student-loan borrowers should know about Biden's new debt relief proposals — and why advocates argue they're not enough
▼ + stars: | 2023-01-16 | by ( Ayelet Sheffey | ) www.businessinsider.com time to read: +7 min

Biden proposed reforms to income-driven repayment plans for student-loan borrowers. "Today the Biden-Harris administration is proposing historic changes that would make student loan repayment more affordable and manageable than ever before," Education Secretary Miguel Cardona said in a statement. Here's what you need to know about these proposed reforms, and why some advocates are still pushing for further relief. This revision mean that the department will also be phasing out other versions of income-driven repayment plans. If you have a federal graduate or undergraduate student loan, who will be eligible for these reforms.

☆ The Education Department 'failed to protect some of the most vulnerable student-loan borrowers' who had their wages stripped from them illegally during the pandemic, Elizabeth Warren says of a new 'al
▼ + stars: | 2022-12-15 | by ( Ayelet Sheffey | ) www.businessinsider.com time to read: +5 min

A new Student Borrower Protection Center report found illegal wage garnishment for student-loan borrowers during the pandemic. Wage garnishment happens when student-loan borrowers falls behind on payments by more than 27o days, considered to be in default. The Education Department has not commented publicly on this report, but is has announced steps to help borrowers in default. But until that change is fully implemented, advocates argue debt collection practices should not resume. "If ED can't guarantee that its debt collection tool can comply with consumer protections, it should never turn this machinery on again."

☆ Why Biden's student-loan forgiveness plan is legal and should be reinstated by the Supreme Court, according to 44 economists, legal experts, and advocates
▼ + stars: | 2022-11-29 | by ( Ayelet Sheffey | ) www.businessinsider.com time to read: +7 min

Biden's administration recently asked the Supreme Court to revive its student-debt relief plan. Biden's Justice Department quickly appealed the 8th Circuit's decision and took the issue to the Supreme Court, asking it on November 18 to revive the student-loan forgiveness plan. It's unclear when, or what, the highest court will ultimately decide, but 44 advocates, economists, legal experts, and scholars joined the Biden administration's fight by filing amicus curiae briefs before Thanksgiving supporting the revival of debt relief. As you know, it's up to the Supreme Court, and we're going to continue to fight. Here are the main arguments the experts and advocates used as to why the Supreme Court should reinstate Biden's student-debt cancellation plan.

☆ An architect of the law Biden is using to cancel student debt tells the Supreme Court that the relief falls 'exactly' under the Education Secretary's authority and should be revived
▼ + stars: | 2022-11-23 | by ( Ayelet Sheffey | ) www.businessinsider.com time to read: +5 min

Former Rep. George Miller, who constructed the law Biden is using to cancel student debt, filed a brief with the Supreme Court supporting the plan. Miller stood with Biden's request to the court to revive the relief after lower federal courts blocked it. After Biden announced up to $20,000 in broad debt relief for federal borrowers at the end of August, a number of conservative lawsuits arose seeking to block the policy. The Supreme Court should lift the injunction put in place by the Eighth Circuit." Along with Miller, advocates, legal experts, and economists filed a series of briefs to the Supreme Court also expressing support for reviving Biden's debt relief.

☆ Biden's administration just made it easier for student-loan borrowers to get rid of their debt in court
▼ + stars: | 2022-11-17 | by ( Ayelet Sheffey | ) www.businessinsider.com time to read: +6 min

The Education and Justice Department released new guidance on bankruptcy for student-loan borrowers. The guidance gives federal borrowers an easier path to relief by making the process more transparent. On Thursday, President Joe Biden's Education and Justice Departments released new guidance on the pathway for student-loan borrowers to get rid of their debt through bankruptcy. While the undue hardship standard still exists, it's an improvement in that the clear guidelines will allow for consistent treatment of loan discharges. It also gives the Justice Department clear standards for recommending relief to the judge without having to go through time-consuming investigations, per the press release.

☆ Student debt forgiveness is on hold for now—here's why it's blocked and what could happen next
▼ + stars: | 2022-11-16 | by ( Kamaron Mcnair | ) www.cnbc.com time to read: +9 min

After appearing to clear a number of other legal hurdles, President Joe Biden's student debt forgiveness plan has been blocked. If the president's appeal in Texas is successful, it's likely the plaintiffs will escalate the case to the Supreme Court or vice versa. Still, federal judges are appointed by elected officials, and it so happens the judges striking down Biden's debt forgiveness were nominated by Republican presidents. Aside from appealing in Texas, the president has not yet announced next steps for the debt forgiveness plan or other relief for borrowers. The 8th Circuit Court's decision to keep the block on debt forgiveness for now adds to the likelihood of a Supreme Court case, she says.

☆ Student-loan borrowers should not resume payments in January after federal courts have blocked the relief, advocates say
▼ + stars: | 2022-11-14 | by ( Ayelet Sheffey | ) www.businessinsider.com time to read: +4 min

Two federal courts have blocked Biden's student-loan forgiveness plan so far. Advocates say student-loan payments should not resume in January without relief. These legal challenges could delay the implementation of Biden's debt relief for months — potentially extending into next year, when student-loan payments are scheduled to resume. Alongside the August announcement of broad student-loan forgiveness, the department announced the "final" extension of the student-loan payment pause through December 31. Still, given that the department told borrowers the goal was to have their relief processed before payments resume, advocates are hoping borrowers won't be thrown into repayment too soon.

☆ The fate of Biden's student-loan forgiveness rests in the federal courts after neither party looks likely to gain a significant majority in the midterms
▼ + stars: | 2022-11-12 | by ( Ayelet Sheffey | ) www.businessinsider.com time to read: +6 min

That means that the fate of President Joe Biden's student-loan forgiveness doesn't lie in the hands of lawmakers, but rather, the federal courts. "We are disappointed in the decision of the Texas court to block loan relief moving forward. Amidst efforts to block our debt relief program, we are not standing down," he added. The department also aims to roll out improvements to targeted loan forgiveness programs, like Public Service Loan Forgiveness, by next summer. "It must use all of its tools to fight to ensure that borrowers receive the debt relief they need."

☆ Biden declared the pandemic 'over.' It could jeopardize student debt relief and more cash for Covid testing.
▼ + stars: | 2022-09-19 | by ( Joseph Zeballos-Roig | Ayelet Sheffey | ) www.businessinsider.com time to read: +6 min

Republicans may also seize on Biden's remarks to challenge his effort to issue student debt relief. It could threaten student debt relief and future coronavirus-related health funding. The remarks suggesting that the emergency has ended may jeopardize twin goals of the Biden administration on student debt relief and coronavirus aid. Part of Biden's legal rationale for providing $10,000 in student debt relief per borrower rests on the lingering pandemic. But some supporters of debt relief don't see it quite that way.

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