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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
The U.S. Department of Education will penalize student loan servicer Mohela, or the Missouri Higher Education Loan Authority, for its failure to send timely billing statements to 2.5 million borrowers. As a result of Mohela's errors, more than 800,000 borrowers were delinquent on their loans, the Education Department said in a statement Monday. Higher education expert Mark Kantrowitz said he believed this was one of the first instances of the government withholding payment from a student loan servicer. "It is only fair for the loan servicer to be penalized for mailing late statements." Federal student loan payments were on pause since March 2020, due to the Covid pandemic, but resumed this month.
Persons: servicer Mohela, Rich Cordray, Mark Kantrowitz, servicer, Kantrowitz, Mohela, servicers, Sen, Elizabeth Warren, Braxton Brewington, Brewington, Biden Organizations: U.S . Department of Education, Washington , D.C, U.S . Department, Education, Missouri Higher Education Loan Authority, Education Department, Finance, Federal, Mohela, CNBC Locations: Washington ,, Missouri, forbearance
The Debt Collective announced it's erasing student debt for former Morehouse College students. It also called for Biden to do the same for all borrowers with federal student debt. The debt that was eliminated is not federal student debt, but rather, institutional debt that a college owns, like unpaid tuition and other school-related expenses. In May of 2022, the Debt Collective took the same action for former Bennett College students, eliminating $1.7 million in college debt for 462 students dating back as far as 1996. Still, the Debt Collective is calling for Biden to act on federal student debt for all borrowers.
Persons: Biden, , Braxton Brewington, We're, It's, Tamy Abernathy Organizations: Morehouse College, Service, Jubilee Fund, HBCU, Bennett College, Education Department, Higher Locations: Georgia
Olivier Douliery | Afp | Getty ImagesAmberlee McGaughey, a librarian in Pennsylvania, was not worried about the restart of student loan payments. In August, she applied for the Public Service Loan Forgiveness program with her loan servicer, MOHELA, or the Missouri Higher Education Loan Authority. Around 7% of student loan borrowers are now more than $100,000 in debt. "The government has made all these announcements, and it's really confusing to people," said Scott Buchanan, executive director of the Student Loan Servicing Alliance, a trade group for federal student loan servicers. Her original student loan bill of $483, which was listed as due on Oct. 20, wasn't affordable for her.
Persons: Miguel Cardona, Kamala Harris, Olivier Douliery, she's, MOHELA, couldn't, Ella Azoulay, Carolina Rodriguez, Rodriguez, Scott Buchanan, Joe Biden, he'd, didn't, Biden, servicers, Braxton Brewington, Sarah Cluff, Sarah Cluff Still, servicer, Cluff, Sen, Elizabeth Warren, Nelnet, Joe Popevis, NelNet, Popevis, Servicers, Brewington, Amberlee, Jane Fox, Fox, Buchanan, Rocky, they'll Organizations: Washington , D.C, Afp, Getty, Public, Missouri Higher Education Loan Authority, CNBC, Finance, Biden, Student, Protection, Carolina, Education, Consumer, Student Loan, Alliance, U.S . Department of Education, Valuable Education, Education Department, MOHELA, SAVE, Legal, Association of Legal Locations: Washington ,, Pennsylvania, Missouri, U.S, New York, servicers
Borrowers do not need to enroll in the on-ramp period, the U.S. Department of Education says. Loans that don't qualify include private student loans and commercially held Federal Family Education Loans. Forgoing payments or making only partial payments during the on-ramp period means you'll likely have a larger bill in a year. For that reason, Scott Buchanan, executive director of the Student Loan Servicing Alliance, a trade group for federal student loan servicers, said he hoped borrowers weren't thinking this is just another payment pause. If you can afford to make your student loan payments, most experts recommend that you do so to avoid ending up with a larger bill when the on-ramp period ends.
Persons: they'll, Scott Buchanan, servicers, Buchanan, didn't, Mark Kantrowitz, Joe Biden's, Braxton Brewington, Biden Organizations: U.S . Department of Education, Family, Student Loan, Alliance, CNBC, Department of Education, Supreme
Two recent Supreme Court rulings have struck down cases due to a lack of states' standing to sue. In February, the Supreme Court heard oral arguments in the two lawsuits that paused the implementation of Biden's plan to cancel up to $20,000 in student debt for federal borrowers. And that's what the Supreme Court has done with two recent rulings. "In Justice Barrett's own words, the ruling for student debt relief should be 'open and shut' in favor of mostly low-income families burdened with the crushing weight of student debt." Student loan borrowers and advocates gather for the People's Rally To Cancel Student Debt During The Supreme Court Hearings On Student Debt Relief on February 28, 2023 in Washington, DC.
Persons: , Joe Biden's, Brown, Biden, they'd, Amy Coney Barrett, Barrett, Brett Kavanaugh, Kavanaugh, Braxton Brewington, Barrett's, Countess, MOHELA, James Campbell Organizations: GOP, Service, US Department of Education, Republican, Indian Child Welfare, . Texas, Department of Homeland Security, Supreme, Relief, Getty, Nebraska who's Locations: . Nebraska, Texas, States, ., Louisiana, Washington ,, United States, scrutinizing, Missouri
Six GOP-led states said in a lawsuit that Biden's student-debt relief will hurt loan company MOHELA. "It is unconscionable that your company—as one of the largest student loan companies in the world—would be involved in overtly political efforts to rob millions of their right to student loan debt relief," Bush wrote in her October 18 letter. Any available funds above reasonable operating needs and reserves are devoted by MOHELA to student financial aid." Even with this new information, it's unclear when the 8th Circuit will make a decision on whether the debt relief can move forward. "MOHELA has cut the single thread this frivolous lawsuit was hanging by, Braxton Brewington, spokesperson for advocacy group the Debt Collective, said in a statement.
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