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A Master Promissory Note, or MPN, is a legal document that outlines the terms and conditions of your federal student loans. Promissory notes are used for all types of loans, like auto loans, mortgages, and personal loans, though an MPN is a special type of promissory note used exclusively for federal student loans. Why the MPN mattersIt's important for student loan borrowers to sign and understand an MPN for the following reasons:It's Not Optional: Required to receive federal student loans. In general, you'll default on most federal student loans if you have not made a payment in more than 270 days. Ryan Wangman, CEPF Loans Reporter Ryan Wangman was a reporter at Personal Finance Insider reporting on personal loans, student loans, student loan refinancing, debt consolidation, auto loans, RV loans, and boat loans.

Persons: Mark Kantrowitz, You'll, Stacey MacPhetres, Andrew Pentis, Ryan Wangman, Read Organizations: Parent PLUS, Department of Education, Bright, Borrower's, Loan, Federal, Aid, Finance, Northwestern University, Boston Globe Locations: Chevron

☆ An important student loan forgiveness deadline is hours away — and it takes under 15 minutes to apply
▼ + stars: | 2024-04-30 | by ( Annie Nova | ) www.cnbc.com time to read: +3 min

urbazonSome student loan borrowers have until the end of Tuesday to take advantage of an opportunity to get their debt forgiven sooner than they would have otherwise. If these borrowers are enrolled in an income-driven repayment plan, it can mean that they're also on multiple different timelines to forgiveness. "This will ensure folks get the maximum number of months of credit towards student debt cancellation," Fox said. Usually, a student loan consolidation restarts a borrower's forgiveness timeline to zero, making it a terrible move for those working toward cancellation. You can apply for a Direct Consolidation Loan at StudentAid.gov or with your loan servicer.

Persons: Jane Fox, Fox, Mark Kantrowitz, Kantrowitz Organizations: Biden, Finance, Cash, Family, Parent, Perkins, CNBC

The role of credit bureaus in credit card applicationsCredit bureaus play a pivotal role in the credit card application process. How credit bureau information influences approval decisionsCredit bureau information plays a pivotal role when financial institutions make credit decisions. Credit bureau reporting frequently asked questionsDo all banks use the same credit bureau for credit card applications? Even though the three credit bureaus score credit slightly differently, improving your credit habits will typically raise your score across the board. Our guide to the best credit cards for pre-approval can help you identify which credit cards you're most likely to be approved for.

Persons: you'll, Here's, TransUnion, Experian, Banks, Chase, —, cardholders, Discover's, Wells, Wells Fargo, Wells Fargo's, that's Organizations: Vantage, Bank, American Express, American Express American, Credit, Bank of America Bank of America, Bank of America, Chase Chase Bank, Chase, Capital, Citi Citi, Citi, Discover Discover Locations: Equifax, Transunion, Wells Fargo Wells, Experian, Wells, Chevron

☆ A $0 monthly student-loan payment could hurt some borrowers in the long term. An upcoming policy could change that.
▼ + stars: | 2024-03-27 | by ( Ayelet Sheffey | ) www.businessinsider.com time to read: +5 min

A Philadelphia Federal Reserve paper examined $0 monthly student-loan payments on income-driven payment plans. AdvertisementA $0 monthly student-loan payment might only help some borrowers for so long. With student-loan payments often presenting a significant financial burden for borrowers, income-driven repayment plans were created with the idea that borrowers would face a monthly payment they can afford based on their income. In some cases, IDR plans would give borrowers a $0 monthly payment that would still count toward their forgiveness process. Borrowers will still be able to do so manually, but the automatic option could protect those with $0 monthly payments from falling behind on the payment plan's requirements.

Persons: —, servicers Organizations: Philadelphia Federal Reserve, Service, Education Department, Education

☆ Biden wants to make student loan forgiveness tax-free permanently
▼ + stars: | 2024-03-18 | by ( Annie Nova | ) www.cnbc.com time to read: +2 min

Sara Stathas | Bloomberg | Getty ImagesHow student loan forgiveness used to be taxedBefore that Covid-era change, any student loan debt canceled by the government was considered taxable and levied at the borrower's normal income tax rate. The federal tax bill could be hefty. watch now'Replacing education debt with tax debt'Many student loan borrowers who get forgiveness aren't able to afford a tax bill, Kantrowitz said. If borrowers sign up for a payment plan with the IRS, they're merely "replacing education debt with tax debt," Kantrowitz said. Other student debt forgiveness plans, including a popular one for public servants and another that cancels the debt for those with serious disabilities, are already nontaxable.

Persons: Joe Biden, Sara Stathas, Mark Kantrowitz, Kantrowitz, aren't, they're Organizations: Hillside Boys, Girls Club, Bloomberg, Getty Locations: Milwaukee , Wisconsin

☆ Student-loan borrowers could see an easier repayment process through Biden's budget request — along with efforts to make college cheaper
▼ + stars: | 2024-03-11 | by ( Ayelet Sheffey | ) www.businessinsider.com time to read: +4 min

It includes a $3.1 billion funding increase for the Education Department to help student-loan borrowers. AdvertisementPresident Joe Biden's budget wish list is out — and it includes boosted funding to help student-loan borrowers as they continue to navigate the return to repayment. Biden's budget request released on Monday outlines what his administration is seeking to prioritize in the final year of his first term. Additionally, the budget request proposes getting rid of student-loan origination fees, or fees a lender charges for processing a borrower's loan. However, many of the initiatives in Biden's budget request would require congressional approval, and with Republicans holding a majority in the House, it's unlikely it would pass in its current form.

Persons: —, Joe Biden's, Education James Kvaal, Pell Grant, Biden Organizations: Education Department, Service, Child, Social Security, Federal, Aid, Federal Student Aid, Education, College Fund, Republicans, Business, Management

Biden unveiled a plan that includes tax credits and down payment assistance to improve housing affordability. Eligible homebuyers would get this tax credit for two years, meaning you could get a total of $10,000 in tax credits for buying a house. Down payment assistanceAnother piece of Biden's plan for more affordable homeownership is the $25,000 in down payment assistance he wants Congress to provide to first-generation homebuyers. What hopeful homebuyers should knowAs a whole, this plan could substantially improve housing affordability, enabling more Americans to become homeowners. And even for homebuyers who qualify for tax credits or other assistance, saving up for a down payment remains a big barrier to homeownership.

Persons: Biden, —, Dan Green, homebuyers Biden, hasn't, doesn't, Green, Daryl Fairweather, Fairweather, White, homebuyers Organizations: Biden, Service, Federal Housing Finance Agency, Consumer Financial, homebuilders, Loan, Program, Bank of America Mortgage, Democrats

☆ Biden Administration lists 17 factors that could qualify student loan borrowers for relief due to financial hardship
▼ + stars: | 2024-02-29 | by ( Kamaron Mcnair | In Kamaronmcnair | ) www.cnbc.com time to read: +4 min

President Joe Biden and his administration are continuing their efforts to provide student debt relief to as many borrowers as possible. At this point in the process — which involves a number of discussions with various stakeholders including borrowers, advocacy groups, lawmakers and more — the rulemaking committee has identified five groups of borrowers who should be considered for debt relief. It struggled to come to an agreement on how to define hardship that would render a borrower eligible for relief. As a result, the administration extended negotiation talks and added sessions in February to address the question of hardship. You may notice there aren't explicit thresholds listed for things like "household income" or when considering debt to income ratios.

Persons: Joe Biden, haven't, Pell Grant Organizations: Higher, Federal, Federal Student, Department of Education, CNBC

FHA loan borrowers struggling to keep up with their mortgage may soon be able to reduce their payments by as much as 25%. The FHA launched the Payment Supplement option in response to high mortgage rates. Lenders can offer the Payment Supplement starting May 1, and they have to start offering it by January 1, 2025. FHA loan borrowers who are struggling to keep up with their mortgage payments will soon have a new option to help them avoid losing their homes to foreclosure. Called the Payment Supplement, this new option can temporarily lower a borrower's monthly payment so they can get back on their feet after a financial hardship.

Persons: —, forbearance, Charles Williams, Percy, you'll, Julia Gordon Organizations: FHA, Service, Finance, Federal, Administration

☆ How struggling student-loan borrowers could qualify for debt cancellation under Biden's second attempt at relief
▼ + stars: | 2024-02-15 | by ( Ayelet Sheffey | ) www.businessinsider.com time to read: +4 min

The Education Department released a proposal for including borrowers with hardship in debt relief. AdvertisementPresident Joe Biden's Education Department unveiled another group of student-loan borrowers it's considering for its second try at debt relief. On Thursday, the Education Department released its proposed text that focused on debt cancellation for borrowers facing financial hardship. Advertisement"College is meant to lead to a better life, but too many students end up struggling due to their student debt," Under Secretary of Education James Kvaal said in a statement. The Education Department emphasized in its press release that it "may consider these and other factors to determine whether borrowers are experiencing the type of hardship that would qualify for debt relief."

Persons: —, Joe Biden's, Biden's, Education James Kvaal, Kvaal, Harris, Pell Grant Organizations: Education Department, Service, Joe Biden's Education Department, Higher, Democratic, Education, Biden, Federal

☆ New student loan repayment plan could make it easier for borrowers to become homeowners
▼ + stars: | 2024-02-13 | by ( Annie Nova | ) www.cnbc.com time to read: +4 min

Row of townhouses in Alexandria, Virginia Grace Cary | Moment | Getty ImagesA new, more affordable repayment plan for federal student loan borrowers may come with another advantage: It could make it easier to become a homeowner. Half of student loan borrowers — including 60% of millennial borrowers — who haven't yet purchased a home say their education debt is delaying them from doing so, according to a 2021 report by the National Association of Realtors. Previously, someone who made $40,000 a year would have a monthly student loan payment of around $151. watch nowIn the past, most mortgage lenders assumed that a borrower's monthly student loan payment was a certain percentage of their loan balance, even if the actual payment was lower, Kantrowitz said. There's one catch: Many mortgage lenders won't use a $0 monthly student loan payment in their underwriting process, which the SAVE plan could leave many borrowers with.

Persons: Alexandria , Virginia Grace Cary, Biden, Mark Kantrowitz, Christelle Bamona, Barmona, Kantrowitz, Bamona Organizations: Valuable Education, National Association of Realtors, Here's, Center for, SAVE, Finance, Lending Locations: Alexandria , Virginia

Low-income mortgage borrowers could get a $2,500 homebuyer credit through Fannie Mae or Freddie Mac. Major mortgage investors Fannie Mae and Freddie Mac are temporarily offering a $2,500 credit to very low-income homebuyers to help offset their down payment and closing costs. The Fannie Mae credit is available through the company's HomeReady program, while people can get the Freddie Mac credit through its Home Possible program. Both Fannie Mae and Freddie Mac have tools that let you see the area median income in a given location. How the $2,500 credit worksIf you qualify for this credit, you'll get the $2,500 through your lender, which Fannie Mae or Freddie Mac later reimburses the lender when your loan is sold.

Persons: Fannie Mae, Freddie Mac, —, Freddie, Fannie Mae's, Freddie Mac's, it's, you'll, Fannie, Eileen Tu, Cyndi Danko, You'll Organizations: Service, Rocket Mortgage, National Council of State, Agencies

☆ Student-loan borrowers who have faced repayment errors should get a 'personalized' explanation on how their account is being corrected — but it'll take time, the Education Department says
▼ + stars: | 2024-02-07 | by ( Ayelet Sheffey | ) www.businessinsider.com time to read: +3 min

Student-loan borrowers have encountered a range of repayment issues, and any mistakes in their accounts will be fixed — but it'll take some time. The Education Department posted guidance for borrowers on what to expect if they found mistakes in their accounts. "It might take several weeks for your loan servicer to send this communication and to make corrections to your account," the guidance said. "You might receive an updated billing statement before you receive the above communication about corrections. According to a notice reviewed by BI in November, student-loan company MOHELA told some borrowers that it was "in the process of updating your account.

Persons: servicers, MOHELA Organizations: The Education Department, Public, BI, Federal, Department

☆ You may need to take extra steps to qualify for Biden's fast-tracked student loan forgiveness
▼ + stars: | 2024-01-16 | by ( Annie Nova | ) www.cnbc.com time to read: +4 min

Pixdeluxe | E+ | Getty ImagesThe Biden administration announced last week that it would fast-track its plan to deliver student loan forgiveness for certain borrowers in its new repayment plan. "A borrower who is already enrolled in the SAVE plan should see this forgiveness automatically," Rubin said. Generally, only Direct loans qualify for the SAVE plan, including Direct subsidized, Direct unsubsidized and Direct PLUS loans. Once your debt is rolled into a Direct Consolidation Loan, you should be able to access the SAVE plan. "If a borrower currently has a loan in default, the defaulted loan is not eligible to be repaid under a SAVE plan," Rubin said.

Persons: Biden, Elaine Rubin, Rubin, Mark Kantrowitz, Kantrowitz Organizations: U.S . Department of, Valuable Education, U.S . Department of Education, SAVE, Direct, Finance Locations: Edvisors

☆ The 2023 stock winners investors should let ride, sell or hedge in the new year
▼ + stars: | 2024-01-01 | by ( Michael Khouw | ) www.cnbc.com time to read: +9 min

Let 'em ride: Several of 2023's best-performing stocks were grossly undervalued at the beginning of the year. So while investors recognized the company could deliver massive earnings and free cash flow, they were afraid Zuckerberg had gone off the reservation. The stock sports topline growth, substantial margins, a strong balance sheet, substantial free cash flow, and a moat around its business. It's time to hedge some of those gains (or take profits): The second best-performing stock in the Russell 1000 for 2023 is Coinbase (COIN) . If you own, but don't want to sell, consider purchasing the March $45/$35 put spread as a particle hedge, as illustrated below.

Persons: David Ricardo, Ricardo, Mark Zuckerberg, Zuckerberg, doesn't, Russell, cryptocurrencies, aren't, Equifax Organizations: Russell, Vertiv, Builders, Topbuild Corp, Nvidia, Investors, MU, Walmart, Visa, Mastercard, Paypal, Experian, PayPal, Palantir Technologies, Government Locations: uptrends

☆ Student-loan borrowers are facing 'serious risks' to their credit scores following the 'chaotic' payment resumption, 4 Democratic lawmakers say
▼ + stars: | 2023-12-04 | by ( Ayelet Sheffey | ) www.businessinsider.com time to read: +4 min

Four Democrats recently wrote a letter that raised concerns about student-loan repayment challenges. They said they're worried servicer errors could hurt borrowers' credit scores. AdvertisementIt's been just over two months since federal student-loan payments resumed and millions of borrowers have already faced a range of difficulties with the transition. Elizabeth Warren, Bernie Sanders, Richard Blumenthal, and Chris Van Hollen sent a letter to Education Secretary Miguel Cardona expressing concerns about challenges student-loan borrowers have faced over the past few months. "For example, we are concerned that ED's credit reporting processes may expose borrowers' credit scores to unanticipated consequences," the letter said.

Persons: they're, —, It's, Elizabeth Warren, Bernie Sanders, Richard Blumenthal, Chris Van Hollen, Secretary Miguel Cardona, it's Organizations: Education Department, Service, Democratic, Secretary, Department, Democrats, Federal Student Aid, House Republicans Locations: Sens

☆ Meet the typical student-loan borrower: a millennial woman with a $35,000 balance who wants debt relief
▼ + stars: | 2023-11-26 | by ( Ayelet Sheffey | ) www.businessinsider.com time to read: +6 min

Millennials hold the most student debt, with an average balance of about $35,000 per person. Most student-loan borrowers want Biden to deliver broad debt relief. Take Helena, a 58-year-old borrower with $145,000 in student debt who previously had to sell items on eBay to afford her payments. That amount varies by generation: the average Gen Z borrower holds $24,472 in student debt, the average millennial holds $42,637 in student debt, and the average Gen Xer holds $48,733 in student debt, according to TransUnion. A Morning Consult and Politico poll in June 2022, right before Biden's first debt relief plan was announced, found that of 2,000 registered voters, 65% of respondents aged 18 to 34 supported $10,000 in debt relief, with 61% of respondents aged 35 to 44 feeling the same.

Persons: Millennials, Biden, —, Helena, Joe Biden's, Theresa Teders, that's, it's, Xer, Zers, millennials, Gen Xers —, Biden's Organizations: Service, eBay, Education Department, Higher, American Association of University Women, Federal Student Aid, Politico

☆ Why it's now easier for student loan borrowers to get rid of their debt in bankruptcy court
▼ + stars: | 2023-11-20 | by ( Annie Nova | ) www.cnbc.com time to read: +4 min

Richard Levine | Corbis News | Getty ImagesFor decades, it was nearly impossible for student loan borrowers to walk away from their debt in bankruptcy court. Congress has set a high bar for discharging student loan debt in bankruptcy. Under the new process, student loan borrowers complete a form to assist the government in evaluating their discharge request. "It makes it easier for student loan borrowers to qualify for bankruptcy discharge by clearly setting out the policy," said higher education expert Mark Kantrowitz. Federal student loan borrowers have several ways to reduce their debt burden, including payment plans with $0 monthly payments and economic hardship and unemployment deferments.

Persons: Richard Levine, That's, Biden, —, Mark Kantrowitz, Kantrowitz Organizations: United State Bankruptcy Court Southern District of NY, Corbis, U.S . Department of Justice, U.S . Department of Education, American Bar Association, Consumer, Federal

☆ How to lock in bond funds returning up to 12% to beat next year's 'hard-ish' landing, according to a chief strategist with $415 billion in fixed income
▼ + stars: | 2023-11-16 | by ( Laila Maidan | ) www.businessinsider.com time to read: +7 min

Last month, bond yields made a comeback and the 10-year Treasury note hit roughly 5%, the highest since 2007. On the other end, bond risk comes from the borrower's ability to pay back their obligation. For investors who want higher income, Bory recommends considering a mutual fund or a commingled fund that provides that diversification. Popular examples of corporate bond funds include the MainStay MacKay High Yield Corporate Bond Fund (MHCAX), Goldman Sachs High Yield Fund (GSHIX), and High Yield Spectrum Fund (PHSIX). Below is a list of Morningstar analysts' favorite high-yield bond funds that have the highest "Gold Medalist" rating.

Persons: George Bory, Bory, MacKay, Goldman Sachs, Allspring, It's, Acct, Rowe Price Organizations: Business, Allspring, Investments, Fed, AAA, BBB, Bond Fund, Fund, Morningstar, PIA Locations: Allspring, US

Sustainability-linked loans (SLL), which were first used in 2017, offer slightly cheaper borrowing, typically around 2.5-10 basis points less, if companies meet goals such as cutting their carbon emissions or improving board diversity. These let banks strip the sustainability-linked label from the loans if targets are no longer deemed appropriate. The banks' tougher standards are discouraging some borrowers from using SLLs entirely, bankers and lawyers told Reuters. The Engie spokesman said the utility would not agree to linking an event of default to sustainability targets. "We have stated our willingness to walk away when sustainability targets were too soft," said Brittany Agostino, vice president in the environmental, social and governance group at Los Angeles-based Ares.

Persons: Toby Melville, Banks, Constance Chalchat, Pascale Forde Maurice, Elliot Beard, Simmons, Beard, I've, David Milligan, Norton Rose Fulbright, Gemma Lawrence, Pardew, Brittany Agostino, Fredrik Altmann, Tommy Reggiori Wilkes, Isla Binnie, Shankar Ramakrishnan, Simon Jessop, Alexander Smith Organizations: FCA, Financial, Authority, REUTERS, LONDON, BNP, Corporate, Institutional Banking, Reuters, JPMorgan, Ford Motors, SLLs, CIB's, European, Sustainable Investment Banking, Simmons, Norton Rose, Market Association, BMW, Porsche, Thomson Locations: London, Britain, North America, Asia, Los Angeles, New York

☆ Some student-loan borrowers are surprised to find their accounts are suddenly in forbearance. Here's why that might be happening.
▼ + stars: | 2023-11-09 | by ( Ayelet Sheffey | ) www.businessinsider.com time to read: +5 min

Some student-loan borrowers are logging into their accounts and seeing it in forbearance. AdvertisementAdvertisementIf you recently logged into your student-loan account and were surprised to see it placed in forbearance, you're not alone. Over the past few days, student-loan borrowers primarily serviced by MOHELA have logged into their accounts to see their loans were no longer in active repayment. Still, the borrower's account continues to show a payment due with interest accruing, according to documents reviewed by Insider. AdvertisementAdvertisementWas your student-loan account placed on administrative forbearance without any notice?

Persons: servicer, —, MOHELA, servicers, forbearance, Scott Buchanan, Elizabeth Warren, Ed Markey, Chris Van Hollen, Richard Blumenthal, Scott Giles Organizations: Department, Service, Public, Student Loan, — Locations: forbearance, MOHELA, Sens

☆ $100,000 monthly student-loan bills, late statements, and erroneous banking fees: here's everything that's gone wrong for borrowers with the return to repayment
▼ + stars: | 2023-11-05 | by ( Ayelet Sheffey | ) www.businessinsider.com time to read: +6 min

And Jess expected to pay around $137 a month in October, but she was billed a $49,000 monthly payment. AdvertisementAdvertisementIncorrect monthly billsWhen servicers attempted to convert borrowers to the new SAVE income-driven repayment plan, 78,000 borrowers got inaccurate bills. Additionally, 21,000 borrowers received monthly statements with "very high and potentially incorrect amounts due," per the memo. Hundreds of borrowers received bills stating they owed over $10,000 a month, with a few borrowers having monthly bills of over $100,000. According to the memo, borrowers are spending an average of 58 minutes on hold with their servicer, call lengths are about 70% longer than 2019 because borrowers have more questions.

Persons: —, Alicia, Xiong Chang, Jess, Joe Biden's, servicers, It's, MOHELA, forbearance Servicers Organizations: Federal, Aid, Service, Joe Biden's Education Department, Public, Department, Education Department, Federal Student Aid Locations: forbearance

☆ Student-loan borrowers with 'hardship' could be eligible for Biden's next round of relief if the administration can define what that means
▼ + stars: | 2023-11-01 | by ( Ayelet Sheffey | ) www.businessinsider.com time to read: +4 min

The Education Department released its draft text for its new student-debt relief plan. AdvertisementAdvertisementOver the past few years, Insider has heard from a range of borrowers who have struggled to get ahead of their student debt. Now, President Joe Biden's Education Department is moving forward with its new plan for student-loan forgiveness — and it wants feedback on which situations would meet a "hardship' standard for relief. The department said it did not include that group of borrowers in its initial draft text for debt relief because it needs to further define what hardship means. Do you think your student debt experiences should qualify as hardship?

Persons: —, Joe Biden's, Pell, Tamy Abernathy Organizations: Education Department, Service, Joe Biden's Education Department, Higher

☆ Her student loan bill was supposed to be $0. Then $2,074 was taken from her account
▼ + stars: | 2023-11-01 | by ( Annie Nova | ) www.cnbc.com time to read: +1 min

Morgan Lindsay didn't mind that student loan bills were resuming in the fall. She'd applied for a new repayment plan over the summer, and her calculated monthly bill came to $0. But then, on Sept. 11, she found that her servicer, Mohela, or the Missouri Higher Education Loan Authority, had taken $2,074 from her bank account. More from Personal Finance:Will Social Security be there for me when I retire? Medicare open enrollment may cut retiree's health-care costsHow much your Social Security check may be in 2024But under the income-driven repayment plan she'd signed up for, she didn't owe anything.

Persons: Morgan Lindsay, She'd, Lindsay, she'd, Mohela Organizations: Missouri Higher Education Loan Authority, Finance, Will Locations: Missouri

☆ Student-loan companies are asking for patience to resolve account errors as payments come due, but borrowers can't afford to wait
▼ + stars: | 2023-10-08 | by ( Ayelet Sheffey | ) www.businessinsider.com time to read: +6 min

AdvertisementAdvertisementAlicia, 48, is just a few months away from qualifying for student-debt relief through the Public Service Loan Forgiveness program. She said she anticipated that once the student-loan payment pause ended, she would be facing the same monthly payment. After over three years, the pandemic student-loan payment pause is officially over — interest started to accrue again in September, and bills are now starting to become due. So we can't wait months and months and months." Are you having challenges with student-loan repayment?

Persons: servicers haven't, —, Alicia, Alicia —, I've, servicers, it's, it'll, they're, We're, Xiong Chang, Xiong, I'm, servicer, he's, Miguel Cardona Organizations: Service, Public, Education Department, Customer Service Locations: PSLF

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