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☆ Meet a single dad with $550,000 in student loans for his 5 children: 'I'm just not going to take the chance on not sending my kids to school'
▼ + stars: | 2023-06-02 | by ( Ayelet Sheffey | ) www.businessinsider.com time to read: +5 min

He took out parent PLUS loans to fund their education and told Insider he now has $550,000 in debt. Clark was preparing to pay for his five kids' education as part of a two-income family, but he and his wife divorced in 2011. Just a few years later, when the children started going to college, he decided to turn to federal loans to finance their education himself. Parent PLUS loans, the type of loan Clark is paying off, are federal loans that let parents pay for their children's education. Clark says he wanted what was best for his kids, and parent PLUS loans allowed him that opportunity.

Persons: Reid Clark, —, Clark, isn't, Andrew Gillen, It's, Joe Biden's Organizations: Service, Parent, Texas Public, Foundation, Yahoo Finance Locations: Pennsylvania, East

☆ Parents and graduate students taking on new student loans are about to experience the highest interest rates in over a decade
▼ + stars: | 2023-05-10 | by ( Ayelet Sheffey | ) www.businessinsider.com time to read: +4 min

The Treasury set the new interest rates for federal student loans in the 2023-2024 school year on Wednesday. They're the highest rates for student loans in over a decade. For graduate and PLUS loans in particular, the interest rate is surging to 8.05%. When it comes to the PLUS loans, this increase is particularly notable given that interest rates on those loans have not been this high since 2006. Insider has previously reported on the burden PLUS loans can bring, especially for parents.

☆ A mom took out over $77,000 in student loans to send her son with autism to college. He got his debt wiped out — but she's still paying hers off with no end in sight.
▼ + stars: | 2023-04-08 | by ( Ayelet Sheffey | ) www.businessinsider.com time to read: +6 min

Marsha Wipperman, 59, took on parent PLUS student loans so her son with autism could attend college. "I'm going pay it. So I just signed away on my parents loans because that's what a parent does." Marsha Wipperman took on $77,000 in PLUS loans for her son. 'I've done 100% what I needed to do at that time'Parent PLUS loans gave Wipperman's son the opportunity to attend college, and she wouldn't have done it any other way.

☆ Biden administration is making a big change to student loan repayment. What borrowers need to know
▼ + stars: | 2023-02-15 | by ( Annie Nova | ) www.cnbc.com time to read: +3 min

Currently, after 20 years of payments on undergraduate student loans, any leftover debt is forgiven on the existing REPAYE Plan. However, under the Biden administration's proposal, those with original student loan balances of $12,000 or less may get their loans forgiven after just 10 years. watch nowPreviously, a borrower who made $40,000 a year would have a monthly student loan payment of around $151. The new option should be available to borrowers with undergraduate and graduate student loans, although undergraduate borrowers will have lower payments. Once the new REPAYE Plan is available, borrowers can call their student loan servicer to enroll in the option, or apply at StudentAid.gov.

The Biden administration has proposed changes that could dramatically lower monthly student loan payments. The plan calculates monthly payments based on a borrower's discretionary income. Insider's Featured Student Loan Refinance Companies SoFi Student Loan RefinancingSplash Financial Student Loan RefinancingEarnest Student Loan Refinancing Chevron icon It indicates an expandable section or menu, or sometimes previous / next navigation options. APR Variable: 4.49% - 8.99%, Fixed: 4.49% - 8.99% Editor's Rating 4.5/5 A five pointed star A five pointed star A five pointed star A five pointed star A five pointed star APR Variable: 3.99% - 8.99% with AutoPay, Fixed: 4.39% - 8.99% with AutoPay Editor's Rating 3.5/5 A five pointed star A five pointed star A five pointed star A five pointed star A five pointed star APR Actual rate and available repayment terms will vary based on your income. According to the Education Data Initiative, half of student loan borrowers still owe $20,000 each on outstanding loan balances after 20 years of entering school.

☆ More student loan borrowers may have $0 payments under Biden's new plan. What you need to know
▼ + stars: | 2023-01-17 | by ( Annie Nova | ) www.cnbc.com time to read: +4 min

Silverkblack | Istock | Getty ImagesIn the new student loan repayment plan proposal rolled out this month by the Biden administration, more borrowers could see their monthly payments drop to $0. The new REPAYE plan could officially be available July 1, 2024, according to higher education expert Mark Kantrowitz. Yet under the new proposal, those who have fallen behind may be able to sign up for the income-based repayment plan, another one of the income-driven repayment plan options. Borrowers will need to enrollOnce the new REPAYE plan is available, borrowers can call their student loan servicer to enroll in the option, or apply at StudentAid.gov. The pandemic-era relief policy suspending federal student loan bills and the accrual of interest has been in effect since March 2020.

☆ 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.

☆ President Biden just announced updates to student loan repayment—here's what borrowers need to know
▼ + stars: | 2023-01-12 | by ( Kamaron Mcnair | ) www.cnbc.com time to read: +4 min

The Biden Administration released details this week on its plan to overhaul the current income-driven repayment plan known as Revised Pay As You Earn plan (REPAYE) for federal student loan borrowers. All student borrowers with direct federal loans (not parent PLUS loans) are eligible for REPAYE repayment plans. The change would also stop interest from accruing on balances while borrowers qualify for $0 monthly payments. No interest accumulation while making regular paymentsUnder the current REPAYE plan, sometimes borrowers' monthly payments are lower than the interest accrued on the loan. Those who borrowed $12,000 or less would be eligible for loan forgiveness after 10 years of monthly payments.

☆ Biden's Education Department just proposed a new way to make monthly student-loan payments 'more affordable and manageable than ever before'
▼ + stars: | 2023-01-10 | by ( Ayelet Sheffey | ) www.businessinsider.com time to read: +5 min

The Education Department unveiled additional details of its reformed income-driven repayment (IDR) plan. It would amend the REPAYE plan by cutting undergraduate student loan payments in half and prevent interest capitalization. One of those programs is the income-driven repayment (IDR) plan, which is intended to give borrowers affordable monthly payments based on their discretionary income with the promise of loan forgiveness after at least 20 years. "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. Rather than creating an entirely new plan, as a fact sheet said, the department will amend the Revised PayAs You Earn (REPAYE) plan, which was created in 2016 to calculate borrowers' monthly payments based on their discretionary income.

Student loan debt has become such an issue that the Biden Administration has been attempting to cancel up to $20,000 in student debt per eligible borrower and has continually extended the student loan repayment pause. Ways employers are currently assisting with student debt management"Employers are increasingly offering student loan contribution plans as a direct way to help borrowers pay down student loan debt," Scruggs says. How other employers can help employees manage student loan debtOne of the simplest and most affordable ways employers can help employees is to share information on what employees need to know about their student loans. "There are many ways to help employees manage and pay down student loan debt. However, note that if you refinance federal student loans you'll lose federal protections, like the current student loan payment freeze and potential student loan forgiveness.

More than 40 million borrowers like Morales-Bartlett were eligible to cancel up to $20,000 in federal student loan debt under President Joe Biden’s one-time student loan forgiveness plan. Meanwhile, the pandemic-era federal student loan repayment pause has been extended while the government awaits the court’s decision. The average federal student loan debt nears $30,000. Brown’s son still has about $50,000 in student debt despite being one of the thousands of North Carolinians who received some student loan relief as part of a multistate settlement with Navient, one of the nation’s largest student loan servicers, over allegations of unfair and deceptive student loan servicing and predatory lending practices, according to Pennsylvania Attorney General Josh Stein's office. He also applied to the currently blocked student loan forgiveness program and is waiting to hear back.

☆ Some students are graduating college with 'unmanageable' debt — but it's not their fault, a government watchdog finds
▼ + stars: | 2022-12-06 | by ( Ayelet Sheffey | ) www.businessinsider.com time to read: +5 min

Specifically, 91% of colleges are understating the net price, which can mislead students into taking on more debt. Current federal law does not require colleges to follow standards when presenting financial aid packages. Not counting student loans in the total cost could present a misleading picture of how expensive a degree would be, pushing students further into debt. "Colleges that estimate the net price by subtracting student loans from the cost of attendance do not present the full net price because students generally must repay their student loans eventually," the report said. "Additionally, subtracting student loans in the net price estimate presents loans as the default method for paying for college, potentially encouraging students to borrow more than they otherwise would."

☆ Biden's student-loan forgiveness might not be doomed if the Supreme Court strikes it down — he could take another legal path
▼ + stars: | 2022-12-04 | by ( Ayelet Sheffey | ) www.businessinsider.com time to read: +8 min

Some advocates and lawmakers argue the Higher Education Act can be used to cancel student debt. "I believe it probably would have been better for him to use the Higher Education Act of 1965," Weiss said. The Higher Education Act as an alternativeSome Democratic lawmakers and experts argue that the authority to cancel student debt has always existed under the Higher Education Act. Legal experts have also voiced support for the Higher Education Act. The Education Department did not immediately respond to Insider's request for comment on whether it is considering pursuing alternative routes to debt relief, including via the Higher Education Act.

In the past two months, student loan forgiveness has been the target of two high-profile lawsuits. Meanwhile, the Biden administration responded by extending the student loan payment pause yet again. What's happening to student loan forgiveness? Since the status of student loan forgiveness remains in the air, the Biden administration has extended the student loan payment pause until the Supreme Court makes a ruling. Select ranked SoFi Student Loan Refinancing and Earnest Student Loan Refinancing as some of the best companies for refinancing student loans.

☆ A first-generation college student with $146,000 in student debt says blocking Biden's relief 'feels like a really sick game': 'It's not the American dream that we were promised'
▼ + stars: | 2022-11-20 | by ( Ayelet Sheffey | ) www.businessinsider.com time to read: +6 min

Guilherme Lopes, 31, is a first-generation college student with $146,000 in student debt. He said the recent court decisions blocking the debt relief "feels like a really sick game." When his high-school guidance counselors advised him to take out student loans to finance his education, that's exactly what he did. He also had high hopes that it would aid his mother and brother, who also hold student debt. While Biden's administration has expressed confidence that it will prevail in court, Lopes said he's upset these lawsuits even happened in the first place.

33-year-old nonprofit worker Micah H. paid off six figures of student loans in 13 years. She started paying them off while she was in college, then continued for the next several years. Insider's Featured Student Loan Refinance Companies SoFi Student Loan RefinancingSplash Financial Student Loan RefinancingEarnest Student Loan Refinancing Chevron icon It indicates an expandable section or menu, or sometimes previous / next navigation options. Micah used the money she was saving on eating out to pay off her student loan debt faster. Once her housing costs were down from $1,600 to $750, she was able to put the $850 savings each month toward her student loans.

☆ How college became so expensive, and how we can turn it around, according to a Pulitzer Prize-winning journalist
▼ + stars: | 2022-10-27 | by ( Annie Nova | ) www.cnbc.com time to read: +3 min

Zoom In Icon Arrows pointing outwardsThe average cost to attend a private college in 1970 was about $3,000 a year. Bunch is a Pulitzer Prize-winning journalist and the national opinion columnist for The Philadelphia Inquirer. That said, I don't believe the price of college will fall dramatically without states lowering tuition at public universities, and without a renewed push for free community college. WB: Making public 4-year universities free or next to free would be expensive and require new funding sources. WB: This seems the biggest flaw in the Biden plan, that it included nothing in the way to lower college costs going forward.

Here are the requirements for forgiveness under PSLF, the limited PSLF waiver, and IDR:Normal PSLF requirements PSLF requirements under the limited waiver Student-loan forgiveness under one-time IDR adjustment Work requirements You must work full-time at a nonprofit, government, or tribal organization at the time of application and forgiveness. You must have made 120 eligible payments while you were employed by a nonprofit, government, or tribal organization. Accepted payment types Only payments made on time and in full count toward the 120 eligible payments needed for forgiveness. Past partial or late payments count toward the 120 eligible payments needed for forgiveness. Forbearance and deferment eligibility Forbearance and deferment periods do not count toward 120 eligible payments needed for forgiveness.

☆ How to Apply for Student Loan Forgiveness
▼ + stars: | 2022-10-22 | by ( ) www.wsj.com time to read: +15 min

The official student loan forgiveness application is available on the Federal Student Aid website. What you can do now to prepare for student loan repayment and reliefFirst and foremost, you can fill out the application for up to $20,000 in student loan forgiveness on the Federal Student Aid website. “January will almost certainly be a chaotic time for the [student loan] servicers,” says Michael Lux, attorney and founder of The Student Loan Sherpa. You might also check out alternative options for student loan forgiveness, such as Public Service Loan Forgiveness and Teacher Loan Forgiveness. If your state charges a tax rate of 5%, for example, expect to pay about $500 in taxes on $10,000 in loan forgiveness or $1,000 on $20,000 in loan forgiveness.

The student-loan forgiveness application is live on the federal student aid website. Over 8 million Americans applied for student-loan forgiveness using the beta version of the application, released on Friday, October 14. Can I still get student-loan forgiveness if I haven't filed my tax return? To receive a non-filing letter from the IRS, fill out Form 4506-T.Will the amount of student-loan forgiveness I receive get taxed? Parents whose children are also applying for student-loan forgiveness must file a separate application for debt relief for their Parent PLUS loans using the same application.

☆ The student-loan forgiveness application is officially live, and your debt relief is now being processed
▼ + stars: | 2022-10-17 | by ( Ayelet Sheffey | ) www.businessinsider.com time to read: +3 min

Biden officially launched the application site for student-loan forgiveness on Monday. On Monday, Biden announced that the site to apply for student-loan forgiveness is officially live, following a beta test of the website conducted over the weekend. These are the federal loans that are eligible for relief, per the department:Undergraduate loansGraduate loansSpousal loansAnd parent PLUS and grad PLUS loans. The department recommends borrowers apply before mid-November to get the relief into their accounts before payments resume early next year, and student-loan companies will notify borrowers once the relief is processed. During his remarks, Biden maintained he has the legal standing to enact this broad debt relief and he called Republican pushback "wrong and hypocritical" during his remarks.

The federal student-loan forgiveness application is now open in beta-testing mode. Access the student-loan forgiveness application here. Here's what you'll need to have on hand to fill out the application and apply for student-loan forgiveness. Here's what the application looks like from a cell phone:The student-loan forgiveness application does not include income verification documents. If you received a Pell Grant, you are eligible for $20,000 in student-loan forgiveness.

You'll receive $10,000 in student-loan forgiveness if you meet the income requirements. You'll receive $20,000 in forgiveness if you received a Pell Grant and meet the income requirements. If you meet the income requirements above and did not receive a Pell Grant, you're eligible to receive $10,000 in student-loan forgiveness. Which loans qualify for student-loan forgiveness? studentaid.govThere is no partial student-loan forgiveness for people who do not meet the income requirementAt the time of this writing, student-loan forgiveness is not available for people who make more than the income requirements outlined in Biden's plan.

Only loans held by the federal government are eligible for Biden's student-loan forgiveness. If you refinance your student loans with a private lender, those loans are no longer eligible. You must have the correct federal student loan type to be eligibleGenerally, only loans held by the federal government are eligible for Biden's forgiveness plan. If you refinance your student loans, you won't be eligible for Biden's forgiveness plan of up to $20,000. The long-term benefits of student-loan forgiveness and income-driven repayment plans outweigh the short-term benefits of refinancing with a private lender.

☆ Everything parents need to know about student loan forgiveness
▼ + stars: | 2022-09-24 | by ( Annie Nova | ) www.cnbc.com time to read: +4 min

More from Personal Finance:How student loan forgiveness will be applied to your debtsKey events on the path to student loan forgivenessHow to calculate your bill for student loan forgiveness Currently, more than 600,000 parents take out student loans for their children each year, up from around 450,000 in 2000, according to data provided by higher-education expert Mark Kantrowitz. The average outstanding Parent PLUS loan is about $30,000, he said. What if I have Parent PLUS loans and my own student loans? Currently, Parent PLUS loans come with an interest rate near 8%, compared with under 5% for undergraduate student loans. If you're still in debt after student loan forgiveness, you'll want to be prepared for the bills to resume in January.

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