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WASHINGTON (AP) — President Joe Biden’s second attempt at student loan cancellation is moving forward with a round of hearings beginning Tuesday to negotiate the details of a new plan. In a process known as negotiated rulemaking, 14 people chosen by the Biden administration will meet for the first of three hearings on student loan relief. Their goal is to guide the Education Department toward a proposal after the Supreme Court rejected Biden’s first plan in June. The negotiators all come from outside the federal government and represent a range of viewpoints on student loans. That plan would have canceled up to $20,000 in federal student loans for borrowers with incomes below $125,000 or couples below $250,000.
Persons: Joe Biden’s, Biden, Biden’s, rulemaking, , didn't, Miguel Cardona, , , ” Biden Organizations: WASHINGTON, Education Department, NAACP, Higher, The Education Department, Republicans, Associated Press, Carnegie Corporation of New, AP Locations: Carnegie Corporation of New York
The Education Department is beginning negotiations for its new broad student-debt relief plan. Borrowers can submit a request to comment on the negotiations at the end of each day. AdvertisementAdvertisementPresident Joe Biden's Education Department is about to embark on its next step to enact broad student-loan forgiveness. At the end of September, the Education Department released new details on what the negotiation sessions will look like. AdvertisementAdvertisementThe Education Department is aware of the challenges borrowers are facing — but there's no clear timeline for when the issues will be resolved.
Persons: , Joe Biden's, they've, I've, Miguel Cardona Organizations: Department, Service, Joe Biden's Education Department, Higher, Education Department, Management, Federal Register
AdvertisementAdvertisementAlicia, 48, is just a few months away from qualifying for student-debt relief through the Public Service Loan Forgiveness program. She said she anticipated that once the student-loan payment pause ended, she would be facing the same monthly payment. After over three years, the pandemic student-loan payment pause is officially over — interest started to accrue again in September, and bills are now starting to become due. So we can't wait months and months and months." Are you having challenges with student-loan repayment?
Persons: servicers haven't, , Alicia, Alicia —, I've, servicers, it's, it'll, they're, We're, Xiong Chang, Xiong, I'm, servicer, he's, Miguel Cardona Organizations: Service, Public, Education Department, Customer Service Locations: PSLF
The Education Department announced $9 billion in student-debt relief for 125,000 borrowers. It impacts borrowers in public service, on income-driven plans, and those with total and permanent disabilities. AdvertisementAdvertisementPresident Joe Biden's Education Department just announced its latest batch of student-debt relief for targeted groups of borrowers. On Wednesday, the department announced that it has approved $9 billion in debt cancellation for 125,000 borrowers. That included a one-time account adjustment for borrowers on income-driven repayment plans and PSLF — most recently, the department announced it had approved relief for 804,000 borrowers on income-driven repayment.
Persons: , Joe Biden's, Biden, Miguel Cardona, Harris, It's, they're, Education James Kvaal, he's Organizations: Education Department, Service, Joe Biden's Education Department, Public, Social Security Administration, Biden, Education
WASHINGTON (AP) — President Joe Biden announced another wave of federal student loan forgiveness on Wednesday as borrowers brace for payments to restart after a three-year pause that began during the COVID-19 pandemic. The Democratic president's latest step will help 125,000 borrowers by erasing $9 billion in debt through existing relief programs. “President Biden has long believed that college should be a ticket to the middle class, not a burden that weighs on families,” the White House said in a statement. Biden is scheduled to make a formal announcement at the White House at 1 p.m. Republicans have fought Biden's plans on student debt, but Wednesday's announcement comes as they're consumed by infighting on Capitol Hill.
Persons: Joe Biden, Biden, , he's, Miguel Cardona, Kevin McCarthy Organizations: WASHINGTON, Democratic, White House, U.S, Supreme, SAVE, , Republicans
The Education Department announced $9 billion in debt relief for 125,000 student-loan borrowers this week. The department will continue evaluating which borrowers have completed the required payments. AdvertisementAdvertisementThe top education official doesn't want student-loan borrowers who believe they've made the required payments to lose hope if they have not yet gotten debt relief. According to Federal Student Aid, the Education Department will continue evaluating borrowers' accounts every two months to determine who has met the threshold for relief. Cardona said he recognizes "how difficult it is for so many borrowers" especially after the Supreme Court struck down President Joe Biden's first plan for debt relief.
Persons: Miguel Cardona, , they've, PSLF, " Cardona, Cardona, Joe Biden's Organizations: Education Department, Service, Public, Education, Federal Student Aid, Federal
Student-loan borrowers with parent PLUS loans are not included in Biden's new SAVE plan. The issue they raised is that parent PLUS borrowers are not eligible for Biden's new SAVE income-driven repayment plan, which is intended to make monthly payments cheaper for many borrowers. "Parent PLUS borrowers face a grim reality as loan repayments restart," Johnson and Cole said. "The new SAVE plan does not apply to Parent PLUS borrowers, and there is currently no plan to assist such borrowers when loans restart." Currently, over 3 million parents hold $104 billion in PLUS loans, and they come with the highest interest rate of all federal loans: 8.05% for the 2023-2024 school year.
Persons: , Joe Biden's, Derrick Johnson, Wisdom Cole, Secretary Miguel Cardona, Johnson, Cole, they're, he's Organizations: NAACP, Education Department, Service, National, Secretary, Parent PLUS, Higher
Student-loan borrowers started to face monthly bills again this week. Miguel Cardona told Insider he's aware of the challenges with repayment. October 1 marked the official end of pandemic relief for federal student-loan borrowers. Education Secretary Miguel Cardona told Insider in an interview that he's aware of the challenges this transition is bringing to both borrowers and servicers. AdvertisementAdvertisementStill, some student-loan servicers continue to point to lack of resources when faced with customer service complaints.
Persons: Miguel Cardona, , we're, Cardona, Joe Biden's, Education James Kvaal, he's, Kvaal, Massachusetts Sen, Elizabeth Warren, Warren, servicers, MOHELA Organizations: Service, Bills, Education Department, Education, Federal Student Aid, Republicans Locations: Massachusetts
Student-loan borrowers are entering uncharted territoryThe Education Department has never had to reenter 28 million people into payments at the same time. Plus, federal servicers' technology may not be up to the task. In contrast, federal student-loan servicing has been contracted out to five companies, and the government doesn't have the resources to fully keep tabs on the industry. "So there really were deep-rooted structural problems in the loan programs on the policy design but also on the execution side," Kvaal said. As the years went on, the GAO continued to identify flaws in student-loan programs that were hurting borrowers.
Persons: Greg Ogden, Ogden, I've, servicer, he's, he'd, We're, Sen, Elizabeth Warren, James Kvaal, , Kvaal, Barack Obama's, Obamacare, servicers, Scott Buchanan, servicers —, servicer MOHELA, MOHELA, Biden, Virginia Foxx, she's, Cardona, it's, Foxx, Carolyn Fast, Joe Biden's, Buchanan, Warren, Pamela Herd, Herd, Melissa Emrey, that's, Miguel Cardona, we're Organizations: Public, Education Department, Department, Student Loan, , GOP, The Century Foundation, Federal Student Aid, Georgetown University, Medicare, Student Aid, Office, Biden, Social, Education, Consumer Financial, Emrey, Federal, Aid Locations: servicers, Arras
Pandemic relief for student-loan borrowers is officially over. State attorneys general said those borrowers shouldn't have to make payments until the issues are fixed. AdvertisementAdvertisementA group of state attorneys general don't think student-loan borrowers should have to pay off their loans while struggling to get issues with their balances resolved. Interest also started building on balances in September due to the debt ceiling bill Biden signed into law in June that codified the end of the student-loan payment pause. Over the past few months, borrowers have increasingly been struggling with their servicers as they began to prepare for repayment.
Persons: , Joe Biden, Miguel Cardona, servicers, Biden, Education James Kvaal, MOHELA Organizations: Service, Education, Student Aid, Democratic, The Education Department
The Education Department announced it's moving forward with the broad student-debt relief process. AdvertisementAdvertisementPresident Joe Biden's Education Department just took the next step on its second attempt to get broad student-debt relief to millions of borrowers. On Friday, the Education Department released a paper outlining what it is considering as it develops its new plan for broad student-loan forgiveness. AdvertisementAdvertisement"The Biden-Harris Administration has taken unprecedented action to fix the broken student loan system and deliver record amounts of student debt relief," Education Secretary Miguel Cardona said in a statement. "Now, we are diligently moving through the regulatory process to advance debt relief for even more borrowers.
Persons: , Joe Biden's, Harris, Miguel Cardona, I'm Organizations: Education Department, Service, Joe Biden's Education Department, Higher, Biden, Harris Administration, Black Colleges, Universities
The Biden administration is moving forward with a new path to provide large-scale student loan debt cancellation in the wake of a Supreme Court ruling this summer that struck down President Joe Biden’s controversial debt relief plan. The Education Department announced Friday that it’s set to begin the formal regulatory process in October to provide debt cancellation for potentially five groups of student loan borrowers – a lengthy process that involves a panel of negotiators who will meet over several months to try to reach a consensus. “The Biden-Harris Administration has taken unprecedented action to fix the broken student loan system and deliver record amounts of student debt relief,” Education Secretary Miguel Cardona said in a statement. “Now, we are diligently moving through the regulatory process to advance debt relief for even more borrowers. “We will also listen to the ideas brought forward by the negotiators.”Notably, the announcement comes as student loan payments are scheduled to restart on Oct.1 for the first time since they were paused at the outset of the COVID-19 pandemic.
Persons: Biden, Joe Biden’s, , “ The, Harris, Miguel Cardona, , James Kvaal, , Biden’s Organizations: Education Department, “ The Biden, Harris Administration, Department, Higher, Biden
The Education Department released its final version of the gainful employment rule. AdvertisementAdvertisementPresident Joe Biden's Education Department has released its final rule to keep student debt from spiraling after a borrower graduates. On Wednesday, the Education Department announced its final version of the gainful employment rule. However, advocates and Democratic lawmakers have previously pushed for a strengthened gainful employment rule to protect borrowers. This includes the most effective gainful employment rule in history," Cardona said.
Persons: , Joe Biden's, Barack Obama, Donald Trump, Education James Kvaal, Jason Altmire, Altmire, Aaron Ament, Miguel Cardona, " Cardona Organizations: Education Department, Service, Joe Biden's Education Department, Education, Education Colleges, Universities —, Department, Democratic, Student Defense
Student-loan borrowers who were part of a 2022 settlement are still waiting for their relief to be processed. A legal advocacy group said a student-loan company is not carrying out the settlement terms correctly. It said some borrowers within the settlement were told they have to resume payments in October. The group said that forcing borrowers with pending borrower defense claims back into repayment "violates the court-approved Settlement Agreement and applicable regulations." The federal pause on student-loan payment ended on September 1 when interest began accruing again on borrowers' balances.
Persons: They're, Cardona —, Donald Trump's, Joe Biden's, it's, MOHELA, Scott Giles, servicers, Cardona, Virginia Foxx, Sen, Bill Cassidy —, , New Jersey Sen, Bob Menendez, Secretary Miguel Cardona Organizations: Service, Education Department, Donald Trump's Education Department, Department, Consumer Financial, Bureau, Democratic, New, Secretary, Public, The Education Department Locations: Wall, Silicon, New York, Sweet v, New Jersey
WASHINGTON (AP) — President Joe Biden’s education chief said he’s open to using “whatever levers” are available — including federal money — to discourage colleges from giving admissions preference to the children of alumni and donors. He made the remark when asked about using federal money as a carrot or rod on legacy admissions. By banning affirmative action but allowing legacy preferences, critics say the court left admissions even more lopsided against students of color. Political Cartoons View All 1173 ImagesThe agency recently opened an investigation at Harvard University after a federal complaint alleged that legacy admissions amount to racial discrimination. Without action, Cardona warned that the nation could face the same setbacks seen in California after it ended affirmative action in 1996.
Persons: Joe Biden’s, he’s, , Miguel Cardona, Cardona, , ” Cardona, there’s, , James Murphy, they’ve, — Cardona, Ron DeSantis, can’t, ” — Cardona Organizations: WASHINGTON, Associated Press, Education, The, Department, Harvard University, Central Connecticut State University, Democratic, China, Education Department, Reform, Republican Gov, ” Conservatives, Carnegie Corporation of New, AP Locations: California, Black, Florida, Carnegie Corporation of New York
Six Democratic lawmakers requested the Education Department look into student-loan company MOHELA. They said they're concerned with paperwork delays that could force borrowers who qualify for PSLF relief back into repayment. Federal student-loan payments are resuming on October 1. "With the restart of repayments, these issues are likely to worsen for borrowers," the lawmakers said in the letter. "Borrowers who are eligible to have their debt cancelled under the PSLF program should not be forced back into repayment due solely to MOHELA's processing delays, which cause difficult financial situations for so many borrowers.
Persons: MOHELA, New Jersey Sen, Bob Menendez, Sen, Elizabeth Warren, Secretary Miguel Cardona, they've, Angus King, Alex Padilla, Ed Markey, Cory Booker, Cardona, Katie Porter, Joe Courtney, Scott Giles, that's, Scott Buchanan, servicers — Organizations: Democratic, Education Department, Federal, Service, Secretary, Public, MOHELA, Department, Student Loan, Locations: Wall, Silicon, New Jersey, PSLF, Sens
GOP lawmakers introduced a bill to overturn Biden's new SAVE income-driven repayment plan. Borrowers can now apply for the SAVE plan before bills become due next month. It also estimated that an additional 1 million low-income borrowers would experience that benefit, and the plan would save all other borrowers at $1,000 a year compared to other income-driven repayment plans. However, the Republican lawmakers seeking to overturn that plan argued it's an overreach of authority and would cost taxpayers. While Republicans opposed that relief, as well, Biden is moving forward with implementing the new repayment plan as borrowers begin to face another monthly bill.
Persons: Joe Biden's, Bill Cassidy, Sen, John Thune, John Cornyn, Cassidy, Biden, Lisa McClain, Miguel Cardona, we're Organizations: Service, Republican, GOP, Education Department Locations: Wall, Silicon, Washington
Interest started to grow on federal borrowers' student-loan balances again on Friday. This signified the end of the student-loan payment pause that began in March 2020. download the app Email address By clicking ‘Sign up’, you agree to receive marketing emails from Insider as well as other partner offers and accept our Terms of Service and Privacy PolicyAdvertisementAdvertisementAfter over three years of relief, student-loan borrowers' balances are once again starting to grow. On Friday, interest was turned back on for federal borrowers' accounts, marking the end of the student-loan payment pause that began in March 2020. First implemented by former President Donald Trump, the payment pause was intended to give borrowers financial relief during the pandemic.
Persons: Donald Trump, Joe Biden, Miguel Cardona, Biden Organizations: Service, Education Department, Student, Federal, Aid, Management, Higher Locations: Wall, Silicon, COVID
The Education Department announced its latest step in the broad student-debt relief process. After the Supreme Court struck down Biden's first plan to cancel student debt broadly for borrowers using the HEROES Act of 2003, his Education Department announced it would be attempting relief using a different law: the Higher Education Act of 1965. "When the Supreme Court ruled against the Biden-Harris Administration's student debt relief plan, we did not waste a moment opening up a new pathway to debt relief," Education Secretary Miguel Cardona said in a statement. Since borrowers will not be entering repayment with broad relief, the department also announced a 12-month "on-ramp" period during which missed payments will not be reported to credit agencies, but interest will still accrue during that time. However, while the department is moving forward with the broad debt relief process, its future is uncertain due to conservative opposition — and potential legal challenges that could once again halt relief for borrowers.
Persons: Joe Biden, Harris, Miguel Cardona Organizations: Education Department, Service, Higher, Biden, Loan, Black Colleges, Universities, Federal Family Education Locations: Wall, Silicon
Since then, it faced legal hurdles, and the Supreme Court struck the relief down in June. Since he took office, his administration was weighing its options to get relief to borrowers, and Biden himself even questioned his authority to enact broad debt relief. About a month after the debt relief announcement, applications opened for federal borrowers to apply for an up to $20,000 reduction to their balances. It did go all the way to the Supreme Court and was deemed ineligible. Even with the Supreme Court ruling, Biden's administration has started implementing other reforms for borrowers, along with a new process for broad student-loan forgiveness using a different law.
Persons: Biden, Joe Biden's, Miguel Cardona, Harris, Biden's, it's, Joe Biden, Demetrius Freeman, Bharat Ramamurti, Chuck Schumer Organizations: Service, Biden, Social, Education Department, Republican, Supreme, Here's, White, Washington, Getty, Higher, National Economic Council Locations: Wall, Silicon
Biden officially launched the new income-driven student-loan repayment plan, known as the SAVE plan. On Tuesday, Biden's administration announced that student-loan borrowers can now officially enroll in the Saving on a Valuable Education, or SAVE, plan, after it began beta testing the program in July. "The SAVE plan is a sea change for students, making college loans far more affordable than ever before," Under Secretary of Education James Kvaal said in a statement. Borrowers who are currently enrolled in the REPAYE plan will automatically have their monthly payments adjusted to the new SAVE plan before payments restart." AdvertisementAdvertisement"The SAVE plan is a game changer," Education Secretary Miguel Cardona told reporters on a Monday press call.
Persons: Biden, Joe Biden, Biden's, Education James Kvaal, Miguel Cardona, we're Organizations: Service, Valuable Education, Education Department, SAVE, Education, Federal, Internal Revenue Service, NAACP Locations: Wall, Silicon
Some student-loan borrowers are running into hurdles leading up to the payment resumption. Insider spoke to borrowers with inaccurate monthly statements and incomplete debt relief. Jess's incorrect monthly payment statement is just one of the challenges borrowers are facing as President Joe Biden's Education Department and federal student-loan companies work to transition millions of borrowers back into repayment. This announcement was part of the department's one-time account adjustment to get relief to borrowers who have reached the repayment threshold. "Right now, House Republicans are pursuing an appropriations bill that cuts $22.5 BILLION from education," Education Secretary Miguel Cardona wrote on X last month.
Persons: Jess, couldn't, Jess —, , she's, there's, Joe Biden's, Scott Buchanan, servicers —, Buchanan, we've, Karin Smith, Smith, I'm, It's, haven't, Miguel Cardona Organizations: Service, Joe Biden's Education Department, Student Loan, , Education Department, The Education Department, House Republicans, Republican 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
The Biden administration, in its first guidance on how to handle the Supreme Court’s ban on affirmative action, offered colleges and universities on Monday something of a road map for how to achieve diverse classes while abiding by the court decision. The administration said schools still had broad latitude when it comes to expanding its pool of applicants, through recruitment, and retaining underrepresented students through diversity and inclusion programs, like affinity clubs. Education Secretary Miguel Cardona, in a news briefing, made it clear that the administration faced the task of enforcing a court ruling that it strongly disagreed with. “This is a moment of great urgency in higher education,” Dr. Cardona said. Alluding to how the enrollment of students of color had initially plunged in states that have banned affirmative action, he said, “We cannot afford that kind of backsliding on a national scale.”
Persons: Miguel Cardona, Dr, Cardona, Organizations: Biden, Education
On Tuesday, the White House convened school administrators, educators and companies to explore how best to protect schools and students' information from cyberattacks. At least eight K-12 school districts across the country experienced significant cyberattacks in the last academic year, the White House said, leading to disruptions in learning. The White House announced a series of actions from federal agencies and commitments from companies to help school districts secure their digital information. Amazon Web Services committed $20 million to fund a cyber grant program for school districts and state departments of education. It will also conduct free security reviews for U.S. education technology companies that provide "mission-critical applications" for K-12 schools.
Persons: Biden, Miguel Cardona, Cardona, Cloudflare, PowerSchool Organizations: White, Government, Office, White House, Federal Communications Commission, Universal Service Fund, Infrastructure Security Agency, Federal Bureau of Investigation, National Guard Bureau, CNBC, Web Services, Google Locations: cyberattacks, U.S
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