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☆ 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

☆ Student-loan forgiveness and cheaper monthly payments are on the line as the GOP's plan to slash Education Department funding moves forward
▼ + stars: | 2023-11-08 | by ( Ayelet Sheffey | ) www.businessinsider.com time to read: +4 min

House Republicans proposed a bill to cut funding for the Education Department. AdvertisementAdvertisementFunding cuts could be coming for the Education Department, and key programs for student-loan borrowers are at risk. These funding cuts would come just over a month into federal student-loan borrowers' return to repayment after an over three-year pause. The GOP appropriations lawmakers, however, wrote that the "Department diverted taxpayer resources for its partisan, costly student loan policies, when it needed to be preparing for an orderly resumption of Federal student loan payments." "The Department repeatedly delayed the return to loan repayment, which generated uncertainty and undermined a timely and orderly restart of loan payments," they wrote.

Persons: —, Biden, Virginia Foxx, Ben Miller Organizations: Republicans, Education Department, Service, Labor, Health, Human Services, Education, Federal Student Aid, GOP

☆ A government shutdown in 12 days could make student-loan borrowers' repayment and customer service struggles even worse
▼ + stars: | 2023-11-06 | by ( Ayelet Sheffey | ) www.businessinsider.com time to read: +4 min

A shutdown could worsen the repayment challenges student-loan borrowers are experiencing. AdvertisementAdvertisementA government shutdown is once again looming, and it's threatening an already precarious return to repayment for student-loan borrowers. Thousands of federal workers would be furloughed, meaning Americans could face delays with customer service in programs like Social Security, along with student-loan repayment assistance. Even before federal student-loan payments officially resumed in October, borrowers were experiencing severe delays getting help from their student-loan servicers due to hours-long hold times and issues processing paperwork. Further limiting the number of customer service representatives available in the event of a shutdown would place a greater strain on borrowers.

Persons: —, Mike Johnson, Johnson, Rosa DeLauro, Scott Buchanan Organizations: Service, Washington, Democratic, Social Security, Management, Education, Education Department, Federal, Aid, Student Loan, —

☆ A top GOP lawmaker is taking legal action to scrutinize the Education Department's authority to cancel student debt for defrauded borrowers
▼ + stars: | 2023-10-31 | by ( Ayelet Sheffey | ) www.businessinsider.com time to read: +5 min

GOP Rep. Virginia Foxx issued a subpoena to the Education Department on Tuesday. AdvertisementAdvertisementA top Republican lawmaker is turning to legal action to get answers from the Education Department on student-debt relief. Borrower defense claims are forms a borrower can submit if they believe they were defrauded by the school they attended, and if approved, their loans from that school would be discharged. AdvertisementAdvertisement"This is the first time the Committee has subpoenaed the Education Department, and it is a measure that I do not take lightly. Biden's Education Department has consistently stood by its legal authority to approve borrower defense claims for defrauded borrowers.

Persons: Virginia Foxx, Foxx, —, Secretary Miguel Cardona, Foxx isn't, Secretary Cardona, Cardona, Donald Trump, Aaron Ament Organizations: Education Department, Service, Republican, Secretary, Biden's, Department, Higher, Student Defense Locations: Cardona

☆ New rules prevent colleges from leaving student-loan borrowers with 'shoddy educations' and lots of debt, Biden's Education Department says
▼ + stars: | 2023-10-24 | by ( Ayelet Sheffey | ) www.businessinsider.com time to read: +5 min

The Education Department released new rules to protect student-loan borrowers from unaffordable debt. They also require colleges to be upfront with a student on the amount of debt they'll take on for a program. AdvertisementAdvertisementPresident Joe Biden's Education Department finalized rules to hold colleges accountable for loading student-loan borrowers up with unaffordable debt. On Tuesday, the Education Department released its final regulations to strengthen oversight over colleges and enhance protections for student-loan borrowers. "They will help prevent fly-by-night colleges from leaving students and taxpayers holding the bag for shoddy educations," he continued.

Persons: —, Joe Biden's, Education James Kvaal, they're, Kelly McManus, Barack Obama's, Donald Trump, Miguel Cardona Organizations: Education Department, Service, Joe Biden's Education, Education, Arnold Ventures

☆ Guns, agency power cases loom as US Supreme Court charts rightward path
▼ + stars: | 2023-09-28 | by ( John Kruzel | ) www.reuters.com time to read: +5 min

People line up in the rain outside of the U.S. Supreme Court in Washington April 29, 2014. Circuit Court of Appeals, whose staunch conservatism rivals that of the Supreme Court. The cases test whether the Supreme Court will go as far as the 5th Circuit. "My instinct is that the Supreme Court will not go this far in most of these cases," Chemerinsky said. "I think the 5th Circuit has taken positions that the most conservative justices will accept, but I would be surprised to see a majority for these positions."

Persons: Gary Cameron, Joe Biden's, Amy Coney Barrett, Donald Trump's, Erwin Chemerinsky, Chemerinsky, Roman Martinez, John Roberts, pare, Martinez, Steve Schwinn, Schwinn, John Kruzel, Andrew Chung, Will Dunham Organizations: U.S, Supreme, REUTERS, Rights, Financial Protection Bureau, Securities and Exchange Commission, SEC, Democratic, New, Circuit, Republican, University of California Berkeley Law, Constitution, Congress, University of Illinois, Thomson Locations: Washington, New Orleans, U.S, University of Illinois Chicago, Texas, New York

☆ Supreme Court charts rightward path in new term
▼ + stars: | 2023-09-28 | by ( John Kruzel | ) www.reuters.com time to read: +5 min

People line up in the rain outside of the U.S. Supreme Court in Washington April 29, 2014. Circuit Court of Appeals, whose staunch conservatism rivals that of the Supreme Court. The justices this term could hear five or more appeals of 5th Circuit rulings. The cases test whether the Supreme Court will go as far as the 5th Circuit. "My instinct is that the Supreme Court will not go this far in most of these cases," Chemerinsky said.

☆ There's no proof that student-loan companies are prepared to bring millions of borrowers back into repayment in under 2 weeks, 2 top Republican lawmakers say
▼ + stars: | 2023-09-20 | by ( Ayelet Sheffey | ) www.businessinsider.com time to read: +4 min

Rep. Virginia Foxx and Sen. Bill Cassidy asked the GAO to investigate the student-loan payment resumption. They said they're concerned loan servicers are not adequately prepared to facilitate repayment. The student-loan payment pause officially ended on September 1 when interest began accruing again on federal borrowers' balances, and bills will start becoming due next month. Additionally, Cassidy and Foxx said that it is "unclear whether borrowers will begin repayments when billing statements resume. In other cases, there will be borrowers who will take some time to work student loans back into their household budgets."

Persons: Virginia Foxx, Sen, Bill Cassidy, they're, Bill Cassidy —, —, Foxx, Cassidy, servicers, Education James Kvaal, Kvaal Organizations: Service, Office, Education, Education Department, GAO, Public Locations: Wall, Silicon

☆ Student-loan payments are resuming the same day the government could shut down. Here's what that means for borrowers.
▼ + stars: | 2023-09-18 | by ( Ayelet Sheffey | ) www.businessinsider.com time to read: +5 min

A shutdown would coincide with the first day federal student-loan payments are set to resume. If not, Americans will face a government shutdown on October 1, which also happens to be the same day federal student-loan payments resume. All that could be much worse if the Education Department shuts down at the same time payments are supposed to start up. AdvertisementAdvertisementAfter over three years on pause, federal borrowers will start footing an extra monthly bill as early as October 1. AdvertisementAdvertisementThe Education Department has said it remains in frequent contact with servicers to ensure a smooth transition back into repayment.

Persons: —, servicers Organizations: Education Department, Service, Sunday, Republicans, Management, Federal Student, Education, Department Locations: Wall, Silicon

☆ Student-loan borrowers who miss payments aren't fully protected during Biden's 'on-ramp' period
▼ + stars: | 2023-09-11 | by ( Ayelet Sheffey | ) www.businessinsider.com time to read: +4 min

Student-loan payments are resuming in October. The Education Department's one-year "on-ramp" period means it won't report missed payments to credit agencies. However, credit agencies might still factor in missed payments on credit scores. "This on-ramp period protects borrowers from having a delinquency reported to credit reporting agencies. AdvertisementAdvertisementThe Education Department has said it continues to remain in close contact with servicers, but experts expect a flood of administrative challenges when borrowers' first bill comes due.

Persons: she's, — Organizations: Service, Education Department, Department Locations: Wall, Silicon, Helena

☆ Insider Today: Gen Z is out on college
▼ + stars: | 2023-09-05 | by ( Dan Defrancesco | ) www.businessinsider.com time to read: +9 min

This post originally appeared in the Insider Today newsletter. In today's big story, we're looking at why college isn't part of the plan for some Gen Zers. Between skyrocketing tuition costs and underwhelming salaries, some Gen Zers are skipping college altogether, writes Charlotte Lytton. A recent survey found that 40% of business leaders think recent Gen Z college grads are unprepared when they enter the workforce. The Insider Today team: Dan DeFrancesco, senior editor and anchor, in New York City.

Persons: Dan DeFrancesco, weren't, Zers, Chelsea Jia Feng, Zers aren't, Charlotte Lytton, It's, Alix Earle, NFTs, TikTok hasn't, Earle, Alix Earle's TikToks, @alixearle, Spencer Platt, Goldman Sachs, we've, David Rosenberg, Rosenberg, Kevin Dietsch, Marc Benioff, they're begrudgingly, Arantza Pena Popo, Corizon, Sen, Elizabeth Warren, James Webb, Stephen King, Holly Gibner, Rice, Naga Siu, Hallam Bullock, Lisa Ryan Organizations: Service, Electric, Wall, Tech, University of Miami, Getty, JPMorgan, Amazon, James, James Webb Telescope, Hubble, NASA, ESA, CSA, Costco, Kirkland Locations: Wall, Silicon, NFTs, Blackstone, Bridgewater, Seoul, New York City, San Diego, London, New York

☆ Over 800,000 student-loan borrowers are set to start seeing their debt wiped out following income-driven repayment reforms
▼ + stars: | 2023-08-14 | by ( Ayelet Sheffey | ) www.businessinsider.com time to read: +4 min

Over 800,000 student-loan borrowers are set to start seeing their debt wiped out. It's part of a one-time account adjustment for borrowers on income-driven repayment plans. The future of the relief is uncertain after conservative groups filed a lawsuit to block it. On Monday, student-loan companies are set to begin discharging the debt of 804,000 borrowers who have qualified for $39 billion in debt relief — part of the first batch of borrowers affected by the Education Department's one-time account adjustment for income-driven repayment plans. "At the start of this Administration, millions of borrowers had earned loan forgiveness but never received it.

Persons: Education James Kvaal, Joe Biden's Organizations: Service, Education, New Civil Liberties Alliance, Cato Institute, Mackinac Center for Public, Public, Education Department Locations: Wall, Silicon

[1/2] Students and pedestrians walk through the Yard at Harvard University in Cambridge, Massachusetts, U.S., March 10, 2020. Democratic President Joe Biden's administration had defended that long-standing practice in the court cases against Harvard University and the University of North Carolina. The ruling left some questions unanswered, and more legal challenges by conservative activists are expected targeting diversity initiatives in education and corporate America. Education Secretary Miguel Cardona said promoting campus diversity remained important even after the ruling. But the departments said universities may consider how race has affected an applicant's life, such as in an applicant's essay.

Persons: Brian Snyder, Biden, Joe Biden's, Miguel Cardona, ”, Nate Raymond, Jarrett Renshaw, Jonathan Oatis Organizations: Harvard University in, REUTERS, U.S, Supreme, Education, Justice, Democratic, Harvard University, University of North, America, Justice Department, Department's, Civil, Harvard, Thomson Locations: Harvard University in Cambridge , Massachusetts, U.S, University of North Carolina, Boston, Washington

☆ Student-loan borrowers keep running into hurdles as Biden's debt relief promises are piling up in court
▼ + stars: | 2023-08-13 | by ( Ayelet Sheffey | ) www.businessinsider.com time to read: +6 min

The lawsuits concern relief for borrowers on income-driven repayment and those who applied for borrower defense. On top of that, borrowers are still reeling from the June Supreme Court decision that struck down President Joe Biden's plan to cancel up to $20,000 in student debt for federal borrowers. The announcement was part of the department's one-time account adjustment to ensure borrowers payments are up to date, and those who completed more than the required payments would receive a refund. But just days later, a separate debt relief measure got blocked in court. The department has already notified borrowers of that relief, and it expects more will qualify.

Persons: SCOTUS, Biden, Joe Biden's, it's, Jason Harmon, I've, I'm, Harmon, —, Reagan Organizations: Service, Education Department, New Civil Liberties Alliance, Cato Institute, Mackinac Center for Public, Public, An Education Department, Trump, Circuit, Career Colleges, Schools of Texas Locations: Wall, Silicon

☆ Biden's efforts to make it easier for defrauded student-loan borrowers to get debt relief were blocked by a conservative court
▼ + stars: | 2023-08-07 | by ( Ayelet Sheffey | ) www.businessinsider.com time to read: +4 min

The Fifth Circuit blocked Biden's new rules to ease the debt relief process for defrauded borrowers. The changes to borrower defense are now blocked as the legal process plays out. The rules would create a more streamlined application process for borrowers seeking debt relief, along with expanding the types of misconduct that would qualify a borrower for a loan discharge. "Defrauded borrowers are legally entitled to relief and their institutions should be held accountable," he said. For now, the department's new rules for borrower defense will be blocked as the legal process proceeds.

Persons: Joe Biden's, Ronald Reagan, Donald Trump —, CCST, Aaron Ament, Jason Altmire, — Organizations: Circuit, Service, Fifth Circuit, Colleges, Schools of Texas, Education Department, The Education Department, Student Defense, Education Colleges, Universities — Locations: Wall, Silicon

☆ Some student-loan companies are offering borrowers cheaper payments before the October restart. Making the switch could strip away a range of debt relief programs.
▼ + stars: | 2023-08-05 | by ( Ayelet Sheffey | ) www.businessinsider.com time to read: +5 min

Some student-loan companies are encouraging federal borrowers to refinance before the payment restart. Companies that manage private loans have started reaching out to federal borrowers, encouraging them to refinance their federal debt to get a better deal on payments. For example, SoFi — a student-loan refinancing company — sent letters to borrowers last month with a header reading, "Federal student loan forbearance is ending soon. Consumer Financial Protection Bureau Advisor to the Director Andrea Matthews told Insider in September that "the benefits to having a federal student loan have never been more tangible. Before federal payments resume in October, borrowers can enroll in the Education Department's new SAVE Plan, which is an income-driven repayment plan intended to lower monthly payments.

Persons: Joe Biden's, It's, —, forbearance, Biden's, Earnest, refinancer, refinancers, Andrea Matthews, Tanya Burnett, Burnett Organizations: Service, Education Department, Public, Biden, Consumer Financial Locations: Wall, Silicon

☆ How Harvard makes so much money — and why a major funding source could be at risk
▼ + stars: | 2023-07-27 | by ( Ayelet Sheffey | ) www.businessinsider.com time to read: +5 min

The Education Department's inquiry into the school's legacy admissions process could shake up funding sources. Harvard fiscal year 2022 operating revenue sources. According to the school's 2022 financial report, philanthropy, which includes gifts from donors and alumni, accounted for 45% of total revenue. "In fiscal year 2022, Harvard received current use gifts from alumni, foundations, and others totaling $505 million, representing approximately 9% of operating revenues," the school said. When it comes to actually spending all that money, Harvard said it uses endowment funds to "support nearly every aspect of University operations."

Persons: Johns, Harvard Organizations: Harvard, Service, Harvard University, Ivy League, Education Department, Community Economic, Greater Boston, Network, Amherst, Research, University Locations: Wall, Silicon, New England, Johns Hopkins

☆ Student-loan borrowers might face even more hurdles resuming payments if Republicans end up passing their new proposal to cut funding for the Education Department
▼ + stars: | 2023-07-19 | by ( Ayelet Sheffey | ) www.businessinsider.com time to read: +5 min

House Republicans are proposing cutting funding for Federal Student Aid by $265 million. Last week, Republicans on the House Appropriations Committee released a series of bills for funding federal agencies through fiscal year 2024. "Right now, House Republicans are pursuing an appropriations bill that cuts $22.5 BILLION from education," Education Secretary Miguel Cardona wrote on Twitter. Cutting funding could pose significant challenges to borrowers, along with the operations of Federal Student Aid. Some Democratic lawmakers have also expressed concerns about a lack of funding for Federal Student Aid.

Persons: it's, Joe Biden's, Biden, Miguel Cardona, Jared Bass, Federal Student Aid . Massachusetts Sen, Elizabeth Warren, Tammy Baldwin, Shelley Moore Capito Organizations: Republicans, Federal, Aid, Service, Republican, Labor, Health, Human Services, Education, House Republicans, Twitter, Federal Student Aid, Public, Center, American Progress, Democratic, Federal Student Aid ., Department of Education, Education Department Locations: Wall, Silicon, Federal Student Aid . Massachusetts

☆ A college graduate with $33,000 in student loan debt says she has 'no hope' after the Supreme Court rejected Biden's forgiveness plan
▼ + stars: | 2023-07-01 | by ( John L. Dorman | ) www.businessinsider.com time to read: +4 min

Many borrowers are dismayed after the Supreme Court struck down President Biden's student-debt relief plan. Anderson said she consistently made her loan payments, but it didn't make a dent in her balance. But in a 6-3 decision, the Supreme Court, driven by its conservative majority, ruled that Biden's debt-relief plan was unconstitutional and required explicit approval by the US Congress. "Now that the Supreme Court has rejected the student loan forgiveness, I have no hope," she told The Post. But hours after the court's decision, Biden initiated a process for using the Higher Education Act of 1965 to cancel student loan debt.

Persons: Biden's, Scarlet Anderson, Anderson, —, Joe Biden's, Pell, Biden, I'm, White Organizations: Service, Education, Arizona State University, Washington Post, Higher

☆ A student-loan company at the center of a lawsuit blocking Biden's debt cancellation with a 'dubious record of customer service' just got a new contract to keep servicing millions of borrowers, Cori B
▼ + stars: | 2023-05-03 | by ( Ayelet Sheffey | ) www.businessinsider.com time to read: +5 min

The Education Department awarded five student-loan companies new contracts, including MOHELA. "No company should be profiting from the student debt crisis, especially MOHELA with their dubious record of customer service in the past," she continued. "My office will continue our work to hold student loan servicers accountable for their harm to our communities. Ultimately, there is still much work to be done to provide student debt relief, bolster college affordability, and begin the transition to a world without student debt at all." As Bush referenced, MOHELA is responsible for the whole PSLF portfolio, which forgives student debt for government and nonprofit workers after ten years of qualifying payments.

☆ Florida is trying to oust an elected school superintendent who publicly criticized DeSantis
▼ + stars: | 2023-04-30 | by ( Kenneth Niemeyer | ) www.businessinsider.com time to read: +3 min

The Florida Department of Education is investigating an elected superintendent who is a fierce critic of Gov. Leon County Schools Superintendent Rocky Hanna publicly criticized DeSantis for the governor's ban on mask mandates at schools during the height of the Covid-19 pandemic. In a letter to Hanna, Florida Education Commissioner Manny Diaz, Jr. said the department had cause to "justify sanctions against your Florida educator certificate," according to the outlet. Hanna told The Daily Beast that he believes the state's investigation stems from a letter sent by a Moms for Liberty leader to DeSantis last year. The letter the group sent to DeSantis complained about the email Hanna sent to school staff at the beginning of the school year.

☆ U.S. Supreme Court won't halt $6 billion student debt settlement
▼ + stars: | 2023-04-13 | by ( John Kruzel | ) www.reuters.com time to read: +4 min

Around 3,500 borrowers entitled to automatic loan discharge under the settlement attended one of the three schools. The decision was separate from a case pending before the high court over the legality of President Joe Biden's plan to cancel $430 billion in student debt for about 40 million borrowers. The message is clear: the rights of student borrowers will not falter, even in the face of well-funded, overblown political attacks masquerading as legal argument," Connor told Reuters. Twenty conservative-leaning U.S. states, led by Ohio, had asked the Supreme Court to grant the request by the schools to pause further loan discharges under the settlement. Around 78,000 borrowers had already received loan discharges by April 11, the Biden administration told the justices in a court filing.

☆ This new paperwork rule could make getting student-loan forgiveness easier for government and nonprofit workers
▼ + stars: | 2023-04-13 | by ( Ayelet Sheffey | ) www.businessinsider.com time to read: +3 min

The Education Department updated guidance for applying for Public Service Loan Forgiveness. Previously, strict paperwork requirements caused many borrowers' applications to be rejected. President Joe Biden's Education Department updated guidance for the Public Service Loan Forgiveness (PSLF) program, which is intended to forgive student debt for government and nonprofit workers after ten years of qualifying payments. "FSA has begun to implement and test a digital employer signature for PSLF," an Education Department spokesperson told Insider. In October 2021, it implemented a limited-time waiver to allow previously ineligible payments to count toward a borrower's loan forgiveness progress.

☆ DeSantis-picked education board considers expanding so-called 'Don't Say Gay' law to 12th grade
▼ + stars: | 2023-03-22 | by ( Kimberly Leonard | ) www.businessinsider.com time to read: +5 min

Florida's board of education is considering an expansion to a Parental Rights law critics call "Don't Say Gay." It would limit instructions about gender identity and sexual orientation for up to 12th grade. It wasn't immediately clear whether the proposal was aimed at supplanting or clarifying the 2022 law, formally known as the Parental Rights in Education Act. Some Florida school boards have shown they're confused about how to abide by the Parental Rights Act. Some have removed books exploring sexual orientation and gender identity from their libraries, though it's unclear for what grades.

☆ Biden wants to 'better support' student-loan borrowers who are returning to repayment. It's further confirmation the payment pause will end this year.
▼ + stars: | 2023-03-09 | by ( Ayelet Sheffey | ) www.businessinsider.com time to read: +4 min

It included increased funding for the Federal Student Aid office to help the return to repayment this year. It comes after SoFi filed a lawsuit to end the payment pause and throw borrowers back into repayment. This budget release also comes in a time of significant uncertainty for student-loan borrowers. "This additional funding is needed to provide better support to student loan borrowers, especially as they return to repayment," the budget said. "The Department will continue to fight to deliver relief to borrowers, provide a smooth path to repayment, and protect borrowers from industry and special interests."

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