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☆ 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

☆ Wartime unity between the US and Israel will soon face its toughest test
▼ + stars: | 2023-11-30 | by ( Stephen Collinson | ) edition.cnn.com time to read: +12 min

CNN —Each day the pause in Israel’s war with Hamas is extended saves lives. Uncertainty, meanwhile, surrounds the future of the remaining hostages, mostly male, that Israel believes remain in Gaza. “Over the past few days I’ve been hearing this question – will Israel go back to fighting after maximizing this phase of returning our hostages? Israel must be more “cautious, more careful, more deliberate and more precise in their targeting,” one senior administration official said. How far will Israel go in testing Biden’s loyalty, forbearance and political viability if the war heats up again?

Persons: Biden, Israel, Bibas, Will Israel, Benjamin Netanyahu’s, ”, Joe Biden, CNN’s MJ Lee, Jennifer Hansler, Katie Bo Lillis, Netanyahu, Biden’s entreaty, Antony Blinken, Daniel Davis, Kasie Hunt, ” Israel, “ We’re, Naftali Bennett, ” Bennett, CNN’s Jake Tapper, “, Yehuda Beinin –, Liat, –, Beinin, Aviv, forbearance Organizations: CNN, World, Organization, West Bank, Palestinian Ministry, Health, US, Wednesday, US Army, CNN International’s, Washington, Democratic Party, Biden, Israel Locations: Israel, Gaza, Jenin, Washington, who’s, American, CNN International’s “ State, Afghanistan, Egypt, Qatar, United States

☆ Now that federal student loan payments have resumed, here's what to consider before refinancing
▼ + stars: | 2023-11-27 | by ( Annie Nova | ) www.cnbc.com time to read: +4 min

But converting federal student loans into private debt can lead to the loss of a number of consumer protections, experts warn. Federal loans have more safeguardsThe most important thing to keep in mind when considering refinancing your federal student loans is that, should you move forward, your debt will be transferred to a private company, and become a private student loan. "Private student loans don't have the same benefits as federal student loans," Kantrowitz said. While federal student loan rates reset annually for new loans, they're fixed once disbursed. Federal student loan borrowers don't need to refinance to get a slightly better rate, Kantrowitz pointed out: Most student loan servicers will offer a 0.25% interest rate deduction when you sign up for automatic payments.

Persons: haven't, Mark Kantrowitz, Kantrowitz, Scott Buchanan, Buchanan, Betsy Mayotte, I've, servicers Organizations: Student Loan, Alliance, Finance, cryptocurrency, U.S . Department of Education, Federal Reserve, The, Student Loan Advisors, Federal Locations: U.S, Mayotte

VA loan borrowers were given the option to put their mortgages in forbearance, meaning they could temporarily pause their mortgage payments. So on November 17, the VA announced a stopgap for distressed VA borrowers. Advertisement"This is good news for VA borrowers, especially those who may be struggling with their mortgage payments," says Christy Bunce, president of New American Funding. How to take advantage of the Refund Modification programDuring the pause, the VA is also offering its Refund Modification program. The VA says that borrowers struggling to make mortgage payments should visit the VA Housing Assistance website or call 877-827-3702 for help.

Persons: servicers, —, who's, it's, Christy Bunce, Bunce Organizations: Service, Department of Veterans Affairs, NPR, Veterans, New Locations: forbearance

☆ A boomer on short-term disability isn't required to make student-loan payments right now. Her servicer took out $200 from her bank anyway.
▼ + stars: | 2023-11-12 | by ( Ayelet Sheffey | ) www.businessinsider.com time to read: +6 min

Amy, 59, is not required to make any student loan payments while pursuing her teaching certificate. It comes as the Education Department is working to strengthen oversight over servicers. AdvertisementAdvertisementWhile federal student-loan payments resumed for most borrowers in October, Amy, 59, knew she was not expected to make any payments. "But that's not the case with student loans. "It's ridiculous these companies get contracts for federal student loans," Amy said.

Persons: Amy, servicer, —, MOHELA, Joe Biden's, servicers, Amy —, she's, that's, it's, Harris, Education Miguel Cardona Organizations: Education Department, Service, Joe Biden's Education Department, The Education Department, Aid, Biden, Harris Administration, Education

☆ Student-loan borrowers facing bad customer service could be transferred to a 'high-performing' company if issues persist, Biden's Education Department says
▼ + stars: | 2023-11-10 | by ( Ayelet Sheffey | ) www.businessinsider.com time to read: +4 min

The Education Department released new guidance on holding student-loan servicers accountable. download the app Email address Sign up By clicking “Sign Up”, you accept our Terms of Service and Privacy Policy . AdvertisementAdvertisementPresident Joe Biden's Education Department just warned student-loan companies that they can't keep getting away with bad behavior. On Thursday, the Education Department announced a new framework for holding services accountable as the transition back into repayment for millions of borrowers continues. The framework outlines how the department will monitor the quality of customer service borrowers are receiving from their servicers, along with punishments when servicers do not fulfill their contractual obligations.

Persons: servicers, —, Joe Biden's, Harris, Education Miguel Cardona Organizations: Education Department, Service, Joe Biden's Education, Biden, Harris Administration, Education, MOHELA Locations: servicers

☆ 2.9 million student-loan borrowers are making $0 monthly payments through a new program Republicans are trying to repeal
▼ + stars: | 2023-11-09 | by ( Ayelet Sheffey | ) www.businessinsider.com time to read: +4 min

The Education Department released data showing 5.5 million borrowers have enrolled in the new SAVE plan. Of those borrowers, 2.9 million of them are making $0 monthly payments. AdvertisementAdvertisementMillions of student-loan borrowers are not paying anything toward their balances right now thanks to President Joe Biden's new repayment plan — but Republicans and one Democrat are seeking to block it. On Wednesday, the Education Department announced that 5.5 million student-loan borrowers are now enrolled in the new SAVE income-driven repayment plan intended to lower monthly payments to borrowers. The latest SAVE data from the Education Department comes just over a month after federal student-loan payments resumed following an over three-year pause.

Persons: Joe Manchin, —, Joe Biden's, Education James Kvaal, Pell Grant, Democratic Sen, Bill Cassidy, John Thune, John Cornyn, Biden, servicers Organizations: Education Department, Republican, Service, Education, SAVE, Democratic, GOP, Federal Student Aid, Federal Locations: Sens, Biden's

☆ 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

☆ A major student-loan company is giving millions of borrowers 'inadequate' information as it works to solve billing inaccuracies, 4 Democratic lawmakers say
▼ + stars: | 2023-11-08 | by ( Ayelet Sheffey | ) www.businessinsider.com time to read: +4 min

The Education Department withheld pay from student-loan company MOHELA over repayment errors. AdvertisementAdvertisementSeveral Democratic lawmakers aren't happy with the way a major student-loan company is resolving account errors for millions of borrowers. @MOHELA has failed to provide borrowers with accurate, timely information about their loans, forcing millions into forbearance. The Education Department said it will continue oversight over servicers to crack down on mistakes that are putting borrowers at risk. Are you experiencing challenges with student-loan repayment?

Persons: MOHELA, —, aren't, Elizabeth Warren, Ed Markey, Chris Van Hollen, Richard Blumenthal, Scott Giles, forbearance, @MOHELA, yKdYeyTfV3 — Ed Markey, Giles, MOHELA's, Miguel Cardona Organizations: Department, Service, Democratic, Education Department, MOHELA, Federal Locations: Sens

☆ Some student-loan borrowers will lose out on debt relief if they don't take action by the end of the year
▼ + stars: | 2023-11-08 | by ( Ayelet Sheffey | ) www.businessinsider.com time to read: +3 min

The Education Department is getting relief to some student-loan borrowers through a one-time account adjustment. Over the summer, President Joe Biden's Education Department announced a one-time account adjustment for borrowers on income-driven repayment plans and Public Service Loan Forgiveness. Following past issues tracking payments for borrowers in targeted relief programs, the adjustment allows borrowers another shot to have their accounts evaluated, and updated correctly, to bring them closer to debt relief. One group eligible for those relief programs is borrowers who hold Federal Family Education Loans. The Education Department instructed servicers to place all impacted borrowers on administrative forbearance without interest accrual until the issues are resolved.

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

NEW YORK (AP) — Trading in shares of WeWork were halted Monday as rumors swirl that the office sharing company, once valued as high as $47 billion, will seek bankruptcy protection. A WeWork spokesperson said last week that the company does not comment on speculation and did not immediately return messages after trading in the company's stock was halted Monday. Shares of WeWork, which cost more than $400 two years ago, could be had Monday for less than $1. In August, the New York company sounded the alarm over its ability to remain in business. And last week, WeWork disclosed a forbearance agreement with bondholders that extended negotiations by one week prior to triggering a default.

Persons: WeWork, Adam Neumann, Japan’s SoftBank, David Tolley Organizations: Street, New Locations: WeWork, New York

In September, WeWork said it would begin to renegotiate all its leases and exit certain locations. The company was renting nearly 20 million square feet of office space in June, more than any other company in the United States. Monday’s actions will not affect WeWork franchises outside the United States and Canada, the company said. WeWork’s demise is a blow for landlords who have leased a large proportion of their space to the company. It focused on leasing, rather than buying, office space and parceling it out to customers that included freelancers, small businesses and larger corporations.

Persons: WeWork, ” WeWork, Adam Neumann, Miguel McKelvey Locations: United States, Canada, WeWork, Lower Manhattan

☆ $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 struggling with repayment need more help than what the Education Department has offered — and they might not get it
▼ + stars: | 2023-11-04 | by ( Ayelet Sheffey | ) www.businessinsider.com time to read: +6 min

The Education Department is strengthening oversight by withholding pay from one servicer, MOHELA. AdvertisementAdvertisementPresident Joe Biden's Education Department made one thing very clear this past week: Student-loan companies cannot get away with bad behavior. It's unclear at this point how withholding pay from a servicer would impact its operations, and whether the impact would trickle down to borrowers. AdvertisementAdvertisementWith Republicans holding a majority in the House, it's unlikely Federal Student Aid will see boosted funding in the upcoming year. Buchanan noted that he's still determining how exactly withholding pay would impact operations and added that he's "not making any excuses for the mistakes here."

Persons: —, Joe Biden's, MOHELA, Scott Buchanan, Jared Bass, Bass, servicers, Buchanan, he's, It's, it'll Organizations: Education Department, Service, Joe Biden's Education Department, Department, Federal Student Aid, Student Loan, —, Education, Center, American Progress, Federal, Aid

☆ 800,000 student-loan borrowers missed payments because their servicer failed to meet its 'basic obligation.' Here's what happens now.
▼ + stars: | 2023-11-02 | by ( Ayelet Sheffey | ) www.businessinsider.com time to read: +4 min

The Education Department withheld pay from MOHELA over failure to deliver on-time billing statements. AdvertisementAdvertisementPresident Joe Biden's Education Department revealed that a major student-loan company made errors with millions of borrowers' accounts. The Education Department instructed MOHELA to place all affected borrowers on forbearances until the issues are resolved. Borrowers enrolled in Public Service Loan Forgiveness or an income-driven repayment plan will have any month spent in forbearance counted toward their forgiveness progress. The Education Department said that it will continue to monitor servicers' performance "and ensure they are meeting their basic contractual obligations to the Department and to borrowers.

Persons: —, Joe Biden's, Miguel Cardona, MOHELA, Will, I'm, What's, servicers Organizations: Department, Service, Joe Biden's Education Department, MOHELA, Education Department, The Education Department, Federal Student, Federal Student Aid Locations: forbearance

☆ Student-loan borrowers could take legal action against their servicers or the Biden administration if repayment mistakes aren't fully fixed, a new federal memo says
▼ + stars: | 2023-11-02 | by ( Ayelet Sheffey | ) www.businessinsider.com time to read: +5 min

The Education Department released a memo detailing mistakes it found student-loan servicers are making with repayment. It pushed for the mistakes to be remedied for borrowers to avoid legal action. AdvertisementAdvertisementPresident Joe Biden's Education Department is concerned student-loan borrowers could turn to legal action if issues with their accounts aren't fully resolved. The Education Department said it will continue enforcing oversight over servicers to ensure borrowers are not further harmed by mistakes to no fault of their own. "We are committed to making things right for borrowers and holding our contractors accountable for errors when they do occur."

Persons: MOHELA, —, Joe Biden's, Education James Kvaal, servicers, I've, it's, Richard Cordray Organizations: Education Department, Service, Joe Biden's Education Department, Wednesday, Federal Student Aid, Education, MOHELA, Department, The Education Department Locations: forbearance

☆ WeWork’s shares plunge 37% on bankruptcy reports
▼ + stars: | 2023-11-01 | by ( Hanna Ziady | ) edition.cnn.com time to read: +2 min

London CNN —WeWork’s shares plunged 37% in pre-market trading Wednesday, following news reports that the beleaguered company plans to file for bankruptcy as early as next week as its losses mount. The SoftBank-backed flexible workspace provider is considering filing for Chapter 11 bankruptcy protection in New Jersey, the Wall Street Journal and Reuters reported Tuesday, citing people familiar with the matter. A bankruptcy filing would mark a spectacular reversal of fortunes for a company valued at $47 billion in 2019. The company’s demise has been years in the making, after it struggled to recover from a botched IPO in 2019. At the time, listing paperwork revealed larger-than-expected losses and potential conflicts of interest related to the company’s founder and then-CEO Adam Neumann.

Persons: London CNN —, ”, Russ Mould, AJ Bell, “, SoftBank, Adam Neumann, WeWork Organizations: London CNN, Wall Street Journal, Reuters, CNN Locations: New Jersey

WeWork said Tuesday it entered into a seven-day forbearance agreement with its noteholders after skipping interest payments earlier this month. Photo: Ted Shaffrey/Associated PressWeWork is planning to file for bankruptcy as early as next week, according to people familiar with the matter, in what would mark a stunning reversal for the flexible-office-space venture that was once valued at $47 billion. New York-based WeWork is considering filing a chapter 11 petition in New Jersey, the people said.

Persons: WeWork, Ted Shaffrey Locations: New York, New Jersey

Rodriguez and her four siblings grew up working on the farm and selling its products at farmers markets back in the city. Farm to operating tableThough she's close with her family, it was difficult breaking the news to her parents that she didn't want to continue working on the farm beyond high school, Rodriguez says. Her parents helped some, and she applied for scholarships, allowing Rodriguez to earn her bachelor's without taking on student debt. In fact, working with patients is one of the highlights of her work. How she spends her moneyEven after paying off her debt, Rodriguez has continued to save around 50% of her income.

Persons: Rodriguez, Chabely Rodriguez, Liam Mays, hasn't, CAAs, Andrea Desky, they're, undergrad, hustled, Donald Trump, I've, Gene Kim, HBO Max, she's Organizations: CNBC, CAA, Brooklyn College, District of Columbia, Nova Southeastern University, Housing, HBO, Toyota Corolla, YouTube Locations: Tampa , Florida, New York, Mexico, Brooklyn, Florida, Fort Lauderdale , Florida, anesthesiology, Costa Rica

☆ Education Department penalizes Missouri lender for error that made 800,000 student loan borrowers delinquent
▼ + stars: | 2023-10-30 | by ( Annie Nova | ) www.cnbc.com time to read: +3 min

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

☆ A major student-loan company failed to send on-time billing statements to 2.5 million borrowers. Biden's Education Department is punishing it.
▼ + stars: | 2023-10-30 | by ( Ayelet Sheffey | ) www.businessinsider.com time to read: +4 min

The Education Department announced it's withholding $7.2 million in pay from student-loan company MOHELA. It's a result of MOHELA failing to deliver on-time billing statements to 2.5 million borrowers. AdvertisementAdvertisementPresident Joe Biden's Education Department just enacted its first punishment on a student-loan company for its repayment mistakes. MOHELA and the Education Department have previously expressed concerns with limited resources due to Congress failing to increase funding for Federal Student Aid in the previous fiscal year. The Education Department did not immediately respond to Insider's request for comment on whether there might be any adverse effects of withholding MOHELA's pay.

Persons: —, Joe Biden's, MOHELA, Miguel Cardona, Richard Cordray, Cordray Organizations: Education Department, Service, Joe Biden's Education Department, Public, Department, Federal Student Aid, Democratic Locations: It's, forebearance

A student loan is reported as an installment loan on your credit report and can affect your credit score. How to build credit with your student loanPracticing good student loan management can positively affect your credit score. Monitor your credit report — Regularly checking your credit report helps you spot inaccuracies and stay on top of your credit. Consolidate or refinance federal student loansYou can apply for student loan consolidation if you need help managing multiple federal student loans. How student loans affect credit scores frequently asked questionsHow much do student loans affect credit scores?

Persons: servicers, isn't, —, you've Organizations: Federal Locations: Federal

Our experts answer readers' student loan questions and write unbiased product reviews (here's how we assess student loans). Federal student loans come with a variety of benefits that you'll lose out on if you refinance. Federal student loans come with a range of benefits and protections that are not available with private loans. These programs, such as Public Service Loan Forgiveness, provide loan forgiveness after meeting specific criteria. When it comes to refinancing student loans, it's important to be cautious about converting federal loans into private ones.

Persons: you'll, —, I've Organizations: Service Locations: Federal

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

☆ Student loan forgiveness: How Biden continues to cancel debt after Supreme Court ruling
▼ + stars: | 2023-10-22 | by ( Katie Lobosco | ) edition.cnn.com time to read: +9 min

Washington CNN —Although the Supreme Court struck down President Joe Biden’s signature student loan forgiveness program in late June, his administration has found ways to cancel more than $48 billion in debt since then. That’s more student loan forgiveness than was granted under any other administration – in part due to the Biden administration’s efforts to temporarily expand some debt relief programs and to correct past administrative errors made to borrowers’ student loan accounts. Expanding debt relief program for public-sector workersNearly $51 billion of student loan debt has been canceled for 715,000 borrowers through the Public Service Loan Forgiveness program since Biden took office. The PSLF program cancels outstanding federal student loan debt for public-sector workers who have made 120 qualifying monthly student loan payments, or about 10 years’ worth of payments. Nearly 513,000 borrowers with a total and permanent disability have received $11.7 billion in student loan forgiveness since 2021.

Persons: Joe Biden’s, Biden, Trump, they’d, –, “, Virginia Foxx, ”, Abby Shafroth, Shafroth, Betsy DeVos Organizations: Washington CNN, of Education, Office, Congress, ”, CNN, Department of Education, Republican, Education, White, New Civil Liberties Alliance, Cato Institute, Mackinac Center for Public Policy, National Consumer Law Center, Loan, Public, PSLF, University of Phoenix, Corinthian Colleges, Social Security Administration, Department of Veterans Affairs, Department, Social Security Locations: Michigan

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