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☆ 277,000 student-loan borrowers who have 'paid what they can afford' for at least a decade are getting $7.4 billion in debt wiped out
▼ + stars: | 2024-04-12 | by ( Ayelet Sheffey | ) www.businessinsider.com time to read: +4 min

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

Read previewGen Zers are facing plenty of challenges as they slowly but surely rise through the ranks of school, work, and the economy. Gallup sampled 2,271 Gen Zers ages 12 through 26 at the end of November 2023. Related storiesThe places where Gen Z finds purpose — school and work — are becoming more elusive for some as the rate of "disconnected youths" rises. Just six in 10 Gen Zers responded that they always or often feel their life has direction, with feelings of significance and purpose lower among older Gen Zers. This drop was most pronounced for Gen Z employees — down six percentage points from last quarter — who increasingly feel less connected to their company's culture.

Persons: —, Gen, Gallup, Zers, Gen Zers, Gen Z, Z Organizations: Service, Gallup, Business

☆ Student-loan forgiveness through Biden's new repayment plan faces another lawsuit from 7 GOP states
▼ + stars: | 2024-04-10 | by ( Ayelet Sheffey | ) www.businessinsider.com time to read: +4 min

Read previewAnother lawsuit to block President Joe Biden's new student-loan repayment plan has arrived. On Tuesday, Missouri's Attorney General Andrew Bailey led six other GOP states in filing a lawsuit to block the new SAVE income-driven repayment plan. It's a similar argument to the lawsuit Biden v. Nebraska, which the Supreme Court ruled had standing to strike down Biden's first broad debt relief plan. It said that due to the generosity of the SAVE plan, fewer borrowers will enroll in PSLF, thus undermining states' recruitment efforts into the public sector. This lawsuit follows Biden's release of new details for his broader student-loan forgiveness plan, which is set to benefit over 30 million borrowers.

Persons: —, Joe Biden's, Andrew Bailey, Biden's, It’s, E67qx1RMsP —, It's, Biden, MOHELA, Bailey Organizations: Service, Missouri's, Business, Education Department, else’s Ivy League, GOP, An Education Department, US Department of Education, MOHELA, . Nebraska, SAVE, of, Public Locations: Missouri, ., of Missouri, PSLF

☆ Student-loan borrowers faced 3.9 million billing errors after entering repayment, a new report from 4 Democratic lawmakers says
▼ + stars: | 2024-04-10 | by ( Ayelet Sheffey | ) www.businessinsider.com time to read: +5 min

Read previewLawmakers have highly scrutinized the return to repayment for millions of student-loan borrowers in the fall. Elizabeth Warren, Richard Blumenthal, Ed Markey, and Chris Van Hollen released a report on student-loan servicer errors amid the return to repayment. Exclusively viewed by Business Insider, the report said servicers made over 3.9 million "billing-related errors" once repayment resumed. Still, the Democratic lawmakers said in their report that more could be done to help borrowers harmed by servicing errors. "To remedy servicers' historic failures and protect borrowers from future harms, there must be a path for debt relief for borrowers harmed by their servicers," they wrote in the report.

Persons: —, Democratic Sens, Elizabeth Warren, Richard Blumenthal, Ed Markey, Chris Van Hollen, servicers, Nelnet, Aidvantage, MOHELA, Warren Organizations: Service, Democrats, Democratic, Business, Education Department, ED, Warren, BI, Public

☆ Student-loan borrowers could benefit from Biden's new debt cancellation plan as early as this fall. Here's what you need to know.
▼ + stars: | 2024-04-09 | by ( Ayelet Sheffey | ) www.businessinsider.com time to read: +5 min

Read previewA new student-loan forgiveness plan is coming — and millions of borrowers could benefit. President Joe Biden's administration unveiled new details for a student-debt relief proposal that could benefit over 30 million borrowers. AdvertisementI said I wouldn't back down from using every tool at our disposal to get student loan borrowers the relief they need. That's why today we're announcing new plans that, if implemented, would cancel student debt for millions more. They include:Up to $20,000 in debt relief for over 25 million borrowers whose balances have grown due to unpaid interest.

Persons: —, Joe Biden's, Biden, rNiCxzzlU3 —, Biden's Organizations: Service, Business, House, Public, Federal, GOP Locations: Madison , Wisconsin

☆ Gen Zers, take note: Some boomers have found a simple path to happiness
▼ + stars: | 2024-04-06 | by ( Ayelet Sheffey | ) www.businessinsider.com time to read: +5 min

Loneliness and happiness are often related, and people of all ages have been battling those issues for years. The World Happiness Report, released in March, delved further into how people of all generations are experiencing loneliness and happiness globally. And when it comes to loneliness in the US, the younger generations were hit the hardest. This is despite the fact that actual social connections are much more frequent for Millennials than Boomers, and about as frequent as for Generation X." AdvertisementThe focus on meaningful connections might just be what splits older generations from younger generations when it comes to happiness.

Persons: —, Millennials, Preeti Malani, Malani, Zers, it's, Susan Skinner, Louis, That's, Xers, Maria Maki, Maki Organizations: Service, Business, Boomers, University of Michigan, Louis Federal, Equity Locations: North America

☆ Gen Xers think they'll need $1.56 million to live comfortably in retirement, a survey found
▼ + stars: | 2024-04-04 | by ( Ayelet Sheffey | Juliana Kaplan | ) www.businessinsider.com time to read: +4 min

According to the survey, Americans set their sights on $1.46 million as the magic number to make them feel comfortable in retirement. And it differs by generation — both Gen Z and millennials said they would feel comfortable retiring with over $1.6 million, Gen X thinks $1.56 million, and boomers think $990,000. For example, the majority of Gen Z, millennials, and Gen X survey respondents expect the US will enter a recession this year — with one-third of adults saying they don't feel financially secure. Gen X is also facing their own tough economic plight as the "forgotten generation." Millennials and Gen Zers both started saving earlier for retirement than their Gen X peers and are more confident that they'll be financially prepared for retirement.

Persons: —, millennials, X, Gen X, That's, X's, Gen Z, it'll, Xers, that's, it's, Millennials, Zers, Gen Xers Organizations: Service, Northwestern Mutual, Business, Fidelity Investments, Wall Street, Social Security, Security

☆ The Fed's timing for interest rate cuts won't have anything to do with the presidential election, Powell says
▼ + stars: | 2024-04-03 | by ( Ayelet Sheffey | ) www.businessinsider.com time to read: +1 min

Fed Chair Jerome Powell said it's still too soon to feel confident in cutting interest rates. But he emphasized that the timing for any rate cuts will not have anything to do with the election. The discussion comes after the Fed maintained its interest rate level in its most recent decision in March. While the Federal Open Market Committee forecast three interest rate cuts in December, Powell said on Wednesday that it'll take more data for the Fed to feel confident enough to implement that relief. This story is available exclusively to Business Insider subscribers.

Persons: Jerome Powell, it's, Trump, Powell, —, Sundhar Pinchai Organizations: Service, Federal Reserve, Stanford's Business, Government, Society Forum, Google, Fed, Federal, Business

☆ Student-loan borrowers in public service are facing a key change starting in May — and it'll mean delays in their debt cancellation progress
▼ + stars: | 2024-04-03 | by ( Ayelet Sheffey | ) www.businessinsider.com time to read: +4 min

Read previewSome key changes are on the way for thousands of federal student-loan borrowers in public service. President Joe Biden's Education Department recently posted new guidance on Federal Student Aid's website with updates to the Public Service Loan Forgiveness program. Once PSLF processing resumes in July, borrowers' loans will remain with their servicer, but the Education Department will fully manage the program. As a result, borrowers can view their PSLF payments directly on studentaid.gov, access "enhanced" services like status tracking for their applications, and see quicker processing times for PSLF. AdvertisementOn top of this transition, MOHELA is in the process of transitioning borrowers to a new servicing platform, which could mean up to 30-day delays in posting payments.

Persons: —, Joe Biden's, MOHELA, that'll, PSLF, Grant, Massachusetts Sen, Elizabeth Warren, Warren, Chuck Schumer, Sen, Bernie Sanders Organizations: Service, Joe Biden's Education Department, Federal, Public, Business, Teacher, College And Higher, Federal Student Aid, Education Department, PSLF, Protection Locations: Massachusetts

☆ Some top schools are bringing back ACT and SAT requirements — but most colleges are still test-optional. Here's what you need to know.
▼ + stars: | 2024-04-03 | by ( Ayelet Sheffey | ) www.businessinsider.com time to read: +7 min

AdvertisementYale and Brown made similar announcements, saying they conducted studies that found requiring testing allowed them to attract the most diverse student body. "The institutions we're currently talking about, they're requiring tests again and didn't necessarily want to ever stop requiring tests," Baker said. Its reason: requiring testing scores would help the school choose between many high school seniors with high GPAs. Even so, data has shown students have continued to take tests despite applying to schools with test-optional policies. AdvertisementMoving forward, Baker said it's important that if more schools choose to switch their testing policies, they consider the announcement's timing.

Persons: —, they're, Brown, Brown's, Francis Doyle, Harry Feder, Dominique Baker, couldn't, Baker, Jay Hartzell Organizations: Service, Dartmouth, Business, Yale, ACT, National Center for Fair, University of Delaware, Ivy League, University of Texas, University of Michigan, College Board Locations: Austin

In particular, the researchers looked at a group dubbed "disconnected youth," who aren't working and are also not in school. As of 2022, disconnected youth comprised 13% of this age group; that share has been rising overall since 1998, according to calculations from the Federal Reserve Bank of Dallas. AdvertisementYounger Americans are facing stagnant incomesThe Dallas Fed found that, even after a post-pandemic dip, the rate of disconnected youth has increased since the end of the 1990s. AdvertisementAnd the number of young adults with no income has been on the rise; in 1990, around one in five young adults said they had no wage or salary income. Are you or were you a "disconnected youth," or supporting one?

Persons: —, Louis, Gen, Zers, Louis Fed's, Louis Fed, William M, Rodgers III, Rodgers Organizations: Service, Louis Federal Reserve's Institute for Economic Equity, Business, Federal Reserve Bank of Dallas, Dallas Fed, Federal Reserve's Survey, Consumer, Louis Fed, National Health, Blacks, Louis, Louis Fed's Institute for Economic Equity

☆ There might be a better way for colleges to honor legacies without giving them preference in admissions
▼ + stars: | 2024-04-02 | by ( Ayelet Sheffey | ) www.businessinsider.com time to read: +6 min

AdvertisementUsing 2021-2022 admissions data from the Common Data Set — a College Board Initiative — the report found that selective and private colleges were most likely to use legacy preference in their admissions. The University of Nebraska, for example, offers $14,000 a year for legacy students from out-of-state. Another example is Drake University, which offers a $2,500 per year award to legacy students. Business Insider has previously reported on the precedent continued legacy preference is setting for the future of higher education. AdvertisementMurphy said he's most worried about legacy preference in admissions, and while legacy scholarships might not send the best message, "if every college in the country drops legacy preferences and hold on to legacy scholarships, I'm fine with that."

Persons: James Murphy, who's, Murphy, Leslie Reed, Drake, he's Organizations: Service, Business, Brookings, College Board Initiative, Reform, University of Nebraska, Drake University, Ivy League

☆ Gen Z isn't sure higher education is worth it — and it might be taking a toll on Harvard
▼ + stars: | 2024-04-01 | by ( Ayelet Sheffey | ) www.businessinsider.com time to read: +1 min

Applications to Harvard declined 5.14% this year, compared to last year. The decline follows controversy at Harvard surrounding its response to antisemitism. It could also reflect a larger trend in Gen Zers no longer valuing higher education. This data also comes after the school reported a 17% decline in applications for early admissions in December. This story is available exclusively to Business Insider subscribers.

Persons: Zers, — Organizations: Harvard, Service, Boston Ivy League, Business

☆ Some student-loan borrowers have just 1 month left to get closer to debt cancellation — and they need to take action
▼ + stars: | 2024-04-01 | by ( Ayelet Sheffey | ) www.businessinsider.com time to read: +1 min

Some student-loan borrowers have one month left to benefit from one-time account adjustments. Borrowers who do not have qualifying loans need to consolidate by April 30. AdvertisementSome student-loan borrowers have just one month to get closer to debt relief. President Joe Biden's Education Department is nearing the end of its one-time account adjustment for borrowers on income-driven repayment plans and Public Service Loan Forgiveness. First implemented last summer, the adjustment allowed the department to evaluate borrowers' accounts every other month to determine which borrowers qualified for debt relief but had yet to receive it.

Persons: —, Joe Biden's Organizations: Education Department, Service, Joe Biden's Education Department, Public, Business

☆ A dad explains why the college financial aid process has him worried he'll be 'scrambling to try to find money at the last minute' for his 2 daughters
▼ + stars: | 2024-03-31 | by ( Ayelet Sheffey | ) www.businessinsider.com time to read: +7 min

Antonio Scordo, 50, is struggling to navigate the college financial aid process for his two daughters. Having already sent his son through college, Scordo was familiar with the Free Application for Federal Student Aid, or FAFSA, process — but this year has brought a host of new challenges. "We also don't want to apply for not enough because then you're scrambling to try to find money at the last minute. According to Federal Student Aid, the ability to make corrections and updates will not become available until "the first half of April." To help pay for his son and one of his daughter's schools, he took out nearly $50,000 in parent PLUS loans, per documents reviewed by BI.

Persons: Antonio Scordo, —, Scordo, Joe Biden's, she's, she'll, Miguel Cardona, Cardona, they're Organizations: Service, Federal Student Aid, Joe Biden's Education Department, Business, BI, The Education Department, Politico, Microsoft, Education Department Locations: Scordo

☆ Thousands of student-loan borrowers got their debt wiped through a new repayment reform. 11 GOP states just filed a lawsuit to block that relief.
▼ + stars: | 2024-03-29 | by ( Ayelet Sheffey | ) www.businessinsider.com time to read: +4 min

Eleven GOP state attorneys general filed a lawsuit to block the SAVE income-driven repayment plan. They argued that the shortened timeline for debt relief through the plan is unconstitutional. An Education Department official said Congress allows the authority to set terms for income-driven repayment. While the lawsuit makes several comparisons to the debt relief plan the Supreme Court struck down, the legal basis for the two plans differ. The Education Department is currently undergoing the negotiated rulemaking process for its second attempt at a broader form of debt relief.

Persons: —, Joe Biden's, Kris Kobach —, Miguel Cardona, Biden's, Biden, Kobach, Harris Organizations: GOP, An Education Department, Service, Biden, Education, Republican, Education Department, Business, US Department of Education, Harris Administration, Higher Locations: Kansas

☆ Happiness is typically U-shaped throughout your life. The US has changed that.
▼ + stars: | 2024-03-27 | by ( Ayelet Sheffey | Tim Paradis | ) www.businessinsider.com time to read: +5 min

A recent global report found a decline in young people's happiness in North America. That's upending the idea that happiness in life follows a U shape. In North America, it now looks more like a J. Related storiesShe added that "younger adults in North America also reported lower levels of trust in the government, higher levels of concerns around corruption. AdvertisementThe idea of dual peaks in contentedness came from a 2010 article in The Economist called "The U-bend of life."

Persons: That's, —, Laura Aknin, Aknin, They're, Vivek Murthy, Christopher Wong Michaelson, Thomas Organizations: Service, Gallup, US, University of St, New York University Locations: North America, contentedness, Finland, Czechia, Lithuania, Slovenia

☆ 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

☆ An 82-year-old who moved to Florida by herself nearly 4 decades ago follows one key tip to avoid loneliness — and it led her to run her first marathon at 60
▼ + stars: | 2024-03-24 | by ( Ayelet Sheffey | ) www.businessinsider.com time to read: +6 min

She loves being active and has found her closest friends through her running group. "It was difficult finding friends, and I didn't know how to make friends," Arguelles told Business Insider. AdvertisementBefore coming to Florida, Arguelles worked in real estate in Chicago, and she found a job in the same field in Florida — but she didn't enjoy it, so she quit. But when she saw a flyer for a running group that was raising money to fight leukemia, she decided to join — and ended up running her first marathon at the age of 60. "I started making friends in that running group, and those friends became a very tight community," Arguelles said.

Persons: Vivien Arguelles, —, Arguelles, didn't, Patrick's, She's, it's, Vivek Murthy, I'd, she's, I'm, Dianne Stone, Stone, we're Organizations: Service, Business, —, National Council, National Institute of Senior Centers Locations: Florida, Cuba, Chicago, Spain, Portugal, Italy

☆ The Fed still probably isn't ready to give Americans the interest rate cuts they're hoping for
▼ + stars: | 2024-03-19 | by ( Ayelet Sheffey | Madison Hoff | ) www.businessinsider.com time to read: +6 min

Still, the door is open for rate cuts later in the year. AdvertisementThe nation's central bank is gearing up to make its second interest rate decision of the year, and it probably won't be the relief many Americans want to see. AdvertisementStill, while Americans may not see an interest rate cut this month, they could see one later on this year. But I still think interest rate cuts of one form or the other are likely this year." A group of Democratic lawmakers are also urging Powell to develop a timeline in which Americans can expect to see rate cuts.

Persons: Jerome Powell, —, Mark Hamrick, Hamrick, Powell, there's, we've, Nick Bunker, Julia Pollak, Pollak, Congressional Progressive Caucus — Organizations: Federal, Service, Fed, Financial Services Committee, North America, Democratic, Congressional Progressive Caucus

☆ A major student-loan company is 'impeding' borrowers' debt cancellation and 'mishandling' their monthly bills, Elizabeth Warren says. She wants its CEO to face Congress.
▼ + stars: | 2024-03-18 | by ( Ayelet Sheffey | ) www.businessinsider.com time to read: +3 min

Read previewMassachusetts Sen. Elizabeth Warren has questions for the head of a major student-loan company — and she wants him to answer them in Congress next month. On Monday, Warren sent a letter to Scott Giles, the CEO of federal student-loan servicer MOHELA, inviting him to testify before the Senate banking committee on April 10. MOHELA was the first federal servicer to be punished by the Education Department for failing to fulfill its contractual obligations. "Your testimony will provide you with an opportunity to offer context on MOHELA's role as a student loan servicer at a time of significant transition for the federal student loan program," she added. Warren, along with other Democratic lawmakers, has previously scrutinized MOHELA's handling of student-loan borrowers' accounts.

Persons: —, Massachusetts Sen, Elizabeth Warren, Warren, Scott Giles, servicer MOHELA, MOHELA, servicer, Chuck Schumer, Sen, Bernie Sanders, PSLF, I'm Organizations: Service, Public, Business, Education Department, Democratic, Consumer Financial Protection Bureau Locations: Massachusetts, Nelnet

☆ A millennial got $76,000 in student debt wiped out last year. Now he's learned it was a mistake and has to dig into his retirement savings to afford payments again.
▼ + stars: | 2024-03-17 | by ( Ayelet Sheffey | ) www.businessinsider.com time to read: +5 min

"So I mean, we upped our retirement contributions, put more in our savings account because we're saving to buy an apartment." According to David's account, he's expected to resume payments in April, and while he's not yet sure what the amount will be, he's already having to cut back on spending and dig into his retirement savings to make sure he can afford an additional bill. Since federal student-loan payments resumed in October after an over three-year pause, many borrowers have been struggling to get help from their servicers due to strained resources at Federal Student Aid, the office that oversees repayment. AdvertisementAs David waits for clarity, he's evaluating how much money he can withdraw from his savings account to face his student-loan payments once again. "I'm on the fortunate end of this in that I do actually have a savings account," David said.

Persons: David, David —, —, MOHELA, he's, We've, we're, Anne, hasn't, I'm Organizations: Service, Business, BI, Public, Education Department, Federal Student Aid, Republican Locations: PSLF, MOHELA

☆ Over 27,000 student-loan borrowers are getting $4.1 million in payments in the mail after debt relief companies 'lured' them into 'fake loan forgiveness claims,' a federal consumer agency says
▼ + stars: | 2024-03-14 | by ( Ayelet Sheffey | ) www.businessinsider.com time to read: +3 min

Read previewThousands of student-loan borrowers are getting checks in the mail after paying companies accused of scamming them for debt relief services. The Federal Trade Commission on Wednesday announced it would be sending over $4.1 million in refunds to 27,584 borrowers who gave money to South Dakota corporations Mission Hills Federal and Federal Direct Group. According to the press release, the FTC said the companies "lured consumers with fake loan forgiveness claims and pocketed their money." Advertisement"Moreover, because Defendants have failed to apply most or any of consumers' payments to their student loans, many consumers have accrued additional capitalized interest on the balance of their loans," the complaint said. Those with questions about the payments can contact JND Legal Administration — the company overseeing FTC's refunds — at 844-566-0108, or seek information through the FTC's refund information website.

Persons: — Organizations: Service, Federal Trade Commission, Wednesday, Mission Hills Federal, Federal Direct Group, Business, FTC, Court, Central, Central District of, —, Consumer Financial, Education Department Locations: South Dakota, Central District, Central District of California, California, reportfraud.ftc.gov

☆ An 83-year-old who moved from New York to Florida explains how she's working to prevent loneliness and make friends — without playing pickleball
▼ + stars: | 2024-03-13 | by ( Ayelet Sheffey | ) www.businessinsider.com time to read: +5 min

Back in New York, Rosalind said she was active with her friends, playing tennis and pickleball at a local club. To attempt to find other social connections, Rosalind said she's taken up playing bridge, participating in a book club, and attending local plays. While moving to a new place can be an isolating experience for anyone, loneliness tends to hit older adults especially hard. Advertisement"The most important thing in life is family and then friends," Rosalind said. 'It's not an easy road'After spending over 80 years in New York, Rosalind said she's still getting used to the quieter life in Florida.

Persons: Rosalind, Rosalind —, —, she's, She's, Vivek Murthy, there's, they're, Maria Maki, Democratic Sen, Chris Murphy, Bob Casey, Murphy, Rosalind isn't Organizations: Service, Democratic Locations: New York, Florida, York, Minnesota

☆ President Biden's new budget wants to bring back the child tax credit and make sure Americans don't face Social Security cuts — all while taxing billionaires and big companies more
▼ + stars: | 2024-03-11 | by ( Juliana Kaplan | Ayelet Sheffey | ) www.businessinsider.com time to read: +5 min

The budget seeks to restore the expanded Child Tax Credit and keep Social Security benefits intact. The budget also proposes a tax increase on billionaires, companies, and firms giving executives big paydays. The proposal comes after a tax bill that would partially expand the Child Tax Credit currently lingers untouched in Congress. Advertisement"It cuts costs for families with children and American workers and lowers childcare costs for hardworking families," Young continued. Would a restored child tax credit or maintained Social Security benefits impact your life?

Persons: Joe Biden, —, White, Shalanda Young, Young, Biden Organizations: Tax, Social, Service, American, Management, Social Security, Federal, Aid, Republican, Republicans, Democratic, —, GOP, Security

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