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☆ Here's what student loan borrowers need to know about the 12-month 'on-ramp' period
▼ + stars: | 2023-10-19 | by ( Annie Nova | ) www.cnbc.com time to read: +3 min

Borrowers do not need to enroll in the on-ramp period, the U.S. Department of Education says. Loans that don't qualify include private student loans and commercially held Federal Family Education Loans. Forgoing payments or making only partial payments during the on-ramp period means you'll likely have a larger bill in a year. For that reason, Scott Buchanan, executive director of the Student Loan Servicing Alliance, a trade group for federal student loan servicers, said he hoped borrowers weren't thinking this is just another payment pause. If you can afford to make your student loan payments, most experts recommend that you do so to avoid ending up with a larger bill when the on-ramp period ends.

Persons: they'll, Scott Buchanan, servicers, Buchanan, didn't, Mark Kantrowitz, Joe Biden's, Braxton Brewington, Biden Organizations: U.S . Department of Education, Family, Student Loan, Alliance, CNBC, Department of Education, Supreme

☆ These 5 groups of borrowers could still get student loan forgiveness under Biden's 'Plan B'
▼ + stars: | 2023-10-18 | by ( Annie Nova | ) www.cnbc.com time to read: +2 min

Nearly 40 million Americans stood to benefit from President Joe Biden's original student loan forgiveness plan, which the Supreme Court ultimately blocked over the summer. Though the Biden administration is now trying to cancel education debt another way, experts have warned that borrowers should temper their expectations. Given the legal challenges of passing sweeping debt forgiveness, they say the president's Plan B for relief is likely to be narrower in its reach. More from Personal Finance:Workers rights amid a 'summer of strikes'Couples leverage 'something borrowed' to cut wedding costs'Soft landing, no recession,' Bank of America predictsIndeed, Kantrowitz estimates that less than 10% of federal student loan borrowers will qualify this round. On the campaign trail, Biden promised to cancel at least $10,000 of student debt per person.

Persons: Joe Biden, Education Secretary Miguel Cardona, Joe Biden's, Biden, Mark Kantrowitz, Astra Taylor Organizations: Education Secretary, White, Washington , D.C, Finance, Workers, Bank of America, U.S . Department of Education, Consumer, CNBC Locations: Washington ,

☆ Charlie Javice, who faces charges after JP Morgan said she defrauded them out of $175 million, says US prosecutors are using 'cherry-picked' evidence to help their case
▼ + stars: | 2023-10-15 | by ( Katie Hawkinson | Jack Newsham | ) www.businessinsider.com time to read: +3 min

Charlie Javice says JP Morgan is withholding thousands of documents that could help her case. Javice is facing federal charges after JP Morgan claimed she defrauded them out of $175 million. Now, the 31-year-old claims JP Morgan has failed to produce "likely thousands" of documents that could help her defense. In April, the federal prosecutors charged Javice with making false claims and submitting false data to JP Morgan after the bank acquired Frank for $175 million. AdvertisementAdvertisementProsecutors said Javice lied to JP Morgan about the number of people relying on her company.

Persons: Charlie Javice, Morgan, Javice, JP Morgan, —, Frank, Slack, Damian Williams, Prosecutors, Mark Kantrowitz, Kantrowitz Organizations: Service, Department of Justice, JP, Federal Student Aid, Justice

☆ Student loan borrowers hit snags as payments resume: 'It's a challenging environment,' head of loan servicer group says
▼ + stars: | 2023-10-13 | by ( Annie Nova | ) www.cnbc.com time to read: +4 min

"These student loan borrowers had the reasonable expectation and belief that they would not have to make additional payments on their federal student loans," said Education Department Undersecretary James Kvaal said in a court filing last year. Former President Donald Trump first announced the stay on federal student loan bills and the accrual of interest in March 2020, when the coronavirus pandemic hit the U.S. and crippled the economy. New SAVE payment plan leads to billing errorsTo ease the transition for borrowers, the Biden administration worked quickly to implement a new payment plan option, which it describes as the "most affordable repayment plan ever." Yet many borrowers who've signed up for the Saving on a Valuable Education, or SAVE, plan, complain they've gotten incorrect bills. According to Kantrowitz, student loan servicers seem, in some cases, to be using the 2022 poverty line to calculate borrowers' payments instead of the current 2023 figure.

Persons: Joe Biden's, James Kvaal, Kvaal, Donald Trump, Biden, who've, they've, Mark Kantrowitz, he's, Kantrowitz, servicers, Ella Azoulay, Buchanan Organizations: Creatas, Getty, U.S . Department, Valuable Education, U.S . Department of Education Locations: U.S

Our experts answer readers' student loan questions and write unbiased product reviews (here's how we assess student loans). AdvertisementAdvertisementAs of October 2023, student loans payments are back, but there are options if you can't afford them. As of October 2023, monthly payments are once again due on federal student loans after being paused since March 2020. Fortunately, there are solutions for people who can't afford student loan payments now. Borrowers who don't want to pay the payment on a standard 10-year repayment plan should look into income-driven repayment plans (including Biden's new SAVE repayment plan).

Persons: —, Jared Costigan, Costigan, Robert Farrington, Farrington, Danny Cieniewicz, you'll, Kantrowitz, Ben Markley Organizations: Service, White, The College Investor, Hyperion, Public, More College Financial

☆ Biden cancels $9 billion in student debt for 125,000 borrowers
▼ + stars: | 2023-10-04 | by ( Annie Nova | ) www.cnbc.com time to read: +2 min

President Joe Biden announced Wednesday that he approved $9 billion in student loan forgiveness for 125,000 Americans. "Biden has forgiven more student loan debt than any previous president," said higher education expert Mark Kantrowitz. Federal student loan payments resumed Oct. 1 after being on pause for more than three years. Before the Supreme Court verdict, Education Department Undersecretary James Kvaal had warned that if the administration was unable to deliver on Biden's sweeping student loan forgiveness plan, delinquency and default rates could skyrocket. More recently, the Consumer Financial Protection Bureau estimated that 1 in 5 student loan borrowers could struggle with the resumption of payments.

Persons: who've, Joe Biden, Biden, Mark Kantrowitz, Taylor Swift, he'd, Astra Taylor, Taylor, James Kvaal Organizations: Public, Finance, Biden, Department, Education, Federal, Consumer Financial, Bureau

White non-Hispanic families in the U.S. have a median wealth of $188,200, compared with $36,100 for Hispanic families, according to data analyzed by the Brookings Institution. In 2016, about half of Hispanic families weren't able to contribute anything to the costs of their children's higher education, UnidosUS, an advocacy organization, found. Overall, Latinos borrow less than their white peers to pay for college, but "they face challenges repaying student loans when they do borrow," said higher education expert Mark Kantrowitz. Most Latinos at institutions of higher education are the first in their families to go to college. Elizabeth Zamudio vice president of education at UnidosUS

Persons: Ana Paula Cortes, David Ferreira, Inequity, Cortes, Elizabeth Zamudio, Mark Kantrowitz Organizations: Center for, Brookings Institution, UnidosUS, Gallup Locations: Mexico, U.S

☆ Some student loan borrowers have extra time before payments restart. Here's why
▼ + stars: | 2023-09-21 | by ( Annie Nova | ) www.cnbc.com time to read: +1 min

Many people made their usual student loan payment in March 2020, before former president Donald Trump first announced the pause on federal student loan bills and interest accrual, he explained. Depending on when their loan servicer received those funds, it may have been considered an extra payment that has now pushed back their due date. You can contact your loan servicer or log in to StudentAid.gov to learn your exact due date, said higher education expert Mark Kantrowitz. The typical federal student loan bill is $350 a month. If you were enrolled in the standard 10-year repayment plan prior to Covid and still are, your monthly payment should not have changed.

Persons: Buchanan, Donald Trump, servicer, Mark Kantrowitz, they're, Kantrowitz, Grace Locations: StudentAid.gov

☆ Withheld transcripts, kicked off campus: College payment plans pose risks, consumer watchdog warns
▼ + stars: | 2023-09-15 | by ( Annie Nova | ) www.cnbc.com time to read: +3 min

However, a new report by the Consumer Financial Protection Bureau warns of a number of risks associated with these payment plans, including snowballing charges and aggressive collection practices. Nearly 4 million students use payment plansNearly all colleges offer some sort of tuition payment plan, the CFPB found. Under the plans, tuition and other education expenses are typically spread out into several payments over a semester or academic year. Most college payment plans are interest-free, but there can be enrollment fees and other charges involved, the CFPB found. "If the family misses a payment, some tuition payment plans may be converted into private student loans with unfavorable terms," he said.

Persons: Rohit Chopra, they're, Elaine Rubin, Rubin, Mark Kantrowitz, delinquencies Organizations: Istock, Consumer Financial, Finance, Money, Homeowners Locations: Edvisors

☆ Student loan interest resumes today — what that means for borrowers
▼ + stars: | 2023-09-01 | by ( Annie Nova | ) www.cnbc.com time to read: +2 min

The interest rates on federal student loans are fixed once disbursed, but vary depending on when they're taken out. "Millions of federal student loan borrowers are starting to adjust to the reality of having to figure out how to bake their student loan payments into their budget once again," said Betsy Mayotte, president of The Institute of Student Loan Advisors, a nonprofit. The typical monthly student loan bill is around $350. As a result of the policy, the average borrower likely saved around $15,000 in student loan payments during the pause, including around $5,000 in interest charges. Student loan borrowers can check their interest rate at Studentaid.gov or with their servicer.

Persons: they're, Betsy Mayotte, Mark Kantrowitz Organizations: The, Student Loan Advisors, Finance

☆ Student loan payments restart in October — here are changes borrowers can expect
▼ + stars: | 2023-08-31 | by ( Annie Nova | ) www.cnbc.com time to read: +4 min

A new servicer, for someMillions of federal student loan borrowers will have a different servicer when payments resume in October. Impacted borrowers should get emails about the change, said Scott Buchanan, executive director of the Student Loan Servicing Alliance, a trade group for federal student loan servicers. Borrowers previously with FedLoan should be transferred to MOHELA, or the Missouri Higher Education Loan Authority, he said. Another repayment optionFederal student loan borrowers can now sign up for the Biden administration's new loan repayment plan, and they could be enrolled in it by the time the bills resume. If your student loan servicer can't process your application for the SAVE plan by the time payments resume, it should place you in a temporary forbearance.

Persons: Julia Amaral, they'll, Granite State —, Scott Buchanan, Buchanan, FAFSA, Mark Kantrowitz, Kantrowitz, servicer, Biden, they're, Joe Biden Organizations: Istock, Pennsylvania Higher Education Assistance Agency, Student Loan, Alliance, Finance, Missouri Higher Education Loan Authority, EdFinancial Services, Lakes Higher, Federal Services, Biden, Valuable Education, Public, Education Department Locations: That's, Pennsylvania, Granite State, MOHELA, Missouri, StudentAid.gov

☆ It should be easier now for student borrowers to apply for public service loan forgiveness. Here's why
▼ + stars: | 2023-08-28 | by ( Annie Nova | ) www.cnbc.com time to read: +2 min

Drazen Zigic | Istock | Getty ImagesNavigating the Public Service Loan Forgiveness Program has been famously difficult. Fortunately, student loan borrowers may find that the process is getting a little easier. watch nowOnce the process is complete, the form should automatically be delivered to the Missouri Higher Education Loan Authority (MOHELA). That's the student loan servicer that currently handles PSLF borrowers (previously FedLoan did so). Try to fill out this form at least once a year, Kantrowitz added, and keep records of your confirmed qualifying payments.

Persons: Drazen Zigic, Mark Kantrowitz, George W, Bush, you've, servicer, Kantrowitz Organizations: Istock, Getty, Public, U.S . Department of Education, Consumer Financial, Bureau, Missouri Higher Education Loan Authority, Education Department Locations: Missouri

☆ Massachusetts health-care workers can get up to $300,000 in student loan forgiveness
▼ + stars: | 2023-08-23 | by ( Annie Nova | ) www.cnbc.com time to read: +1 min

The Massachusetts Executive Office of Health and Human Services announced this week that it would be awarding about $140 million in student loan relief to more than 2,900 workers in the state. The aid comes from the MA Repay Program, which the state launched last November to provide financial support to health-care workers, including psychiatrists, psychologists, nurses and social workers. The student loan awards range between $12,500 and $300,000 per borrower. The Massachusetts program is one of the many state efforts to reduce people's education debt burden. "There are many other opportunities for loan forgiveness that often go unknown because there is no global database of all student loan forgiveness options," said higher education expert Mark Kantrowitz.

Persons: Maura Healey, Joe Biden's, Mark Kantrowitz Organizations: of Health, Human Services, Finance, U.S, Supreme Locations: Massachusetts

☆ When student loan payments restart, many borrowers may have a different servicer
▼ + stars: | 2023-08-21 | by ( Annie Nova | ) www.cnbc.com time to read: +1 min

Mementojpeg | Moment | Getty ImagesLook out for notices about the changeScott Buchanan, executive director of the Student Loan Servicing Alliance, a trade group for federal student loan servicers, said impacted borrowers should get emails about the change. Higher education expert Mark Kantrowitz has been tracking the transfers. Borrowers previously with FedLoan should be transferred to MOHELA, or the Missouri Higher Education Loan Authority, he said. Accounts with Great Lakes Higher Education, Kantrowitz said, should be managed by Nelnet going forward. Also, Kantrowitz said, "whenever there is a change of loan servicer, there can be problems transferring borrower data."

Persons: Scott Buchanan, servicers, Buchanan, Mark Kantrowitz, Kantrowitz, You'll Organizations: Student Loan, Alliance, Missouri Higher Education Loan Authority, EdFinancial Services, Lakes Higher, Federal Services Locations: MOHELA, Missouri, Granite State, StudentAid.gov

☆ Few families pay the full price for college: Take these 3 steps to help cover rising higher education costs
▼ + stars: | 2023-08-17 | by ( Sharon Epperson | In Sharoneppersoncnbc | ) www.cnbc.com time to read: +5 min

The average sticker price for college, or published costs for tuition and fees, has been rising — but most families don't pay full price. Here are three strategies that can help you pay for college now and save for rising costs in the future. Last year, about 30% of parents used college savings plans such as 529 plans to pay for about $7,800 of college costs, on average, according to the Sallie Mae report. For families who remain concerned about making ends meet based on the financial aid award they've received, it is possible to ask the college financial aid office for more aid. If your circumstances are now different, that should be brought to the financial aid office's attention.

Persons: Sallie Mae, Adam Nguyen, Ivy Link, Roth IRAs, Ivy, Nguyen, Rob Franek, Mark Kantrowitz, they've, you've Organizations: College Board, Istock, Getty, Ivy, The Princeton, ACT, College

☆ Biden administration releases guidance for colleges after Supreme Court strikes down affirmative action
▼ + stars: | 2023-08-14 | by ( Jessica Dickler | ) www.cnbc.com time to read: +2 min

The Biden administration released new guidance Monday on how colleges can "lawfully achieve a diverse student body" in the wake of the Supreme Court's ruling striking down affirmative action. Experts predicted the Supreme Court's ruling would encourage colleges to put more weight on students' household income and their regional background to diversify their student bodies. Schools may also rely less on standardized test scores or even eliminate SAT and ACT requirements, which have reinforced race gaps, other studies show. Colleges are likely to add questions along these lines to their admissions applications, according to higher education expert Mark Kantrowitz, and more may also end the policy of giving preferential treatment to legacy students, which is increasingly under fire after the ruling on affirmative action. Subscribe to CNBC on YouTube.

Persons: Harris, Education Miguel Cardona, John Roberts, Mark Kantrowitz Organizations: Biden, U.S . Department of Education, Supreme, Constitution, Civil, Harris Administration, Education, Finance, ACT, Education Department, CNBC, YouTube Locations: U.S

☆ 3 options for struggling student loan borrowers when payments restart
▼ + stars: | 2023-08-10 | by ( Annie Nova | ) www.cnbc.com time to read: +3 min

Jacob Wackerhausen | Istock | Getty ImagesWith other household debt on the rise, the restart of student loan payments in less than two months may cause financial hardship for many Americans. The pause on federal student loan payments is one of the last Covid pandemic-era relief measures still in effect, but the bills are expected to finally resume in October. If you're unemployed when student loan payments resume, you can request an unemployment deferment with your servicer. The maximum amount of time you can use an unemployment or hardship deferment is usually three years, per type. Kantrowitz provided an example: A $30,000 student loan with a 5% interest rate would increase by $1,500 a year under a forbearance.

Persons: Jacob Wackerhausen, Mark Kantrowitz, Kantrowitz, Betsy Mayotte, Biden Organizations: Istock, Deferments, Peace Corps, The, Student Loan Advisors Locations: Mayotte

☆ These 7 companies hire remote workers and help pay off student debt
▼ + stars: | 2023-08-08 | by ( Annie Nova | ) www.cnbc.com time to read: +1 min

Tayfun Coskun | Anadolu Agency | Getty ImagesHow student loan aid works as an employee benefitStudent loan assistance programs come in a number of forms, and the benefit's value can vary widely. So it's worth digging into the terms before you make it a deciding factor in your job hunt, experts say. Total outstanding student loan debt is estimated to be over $1.7 trillion. "With very low unemployment rates, employers will be more willing to offer student loan assistance to attract and retain qualified employees," said higher education expert Mark Kantrowitz. Although, he noted, a higher salary does allow workers to pay off their debt at a faster pace on their own.

Persons: ABT, Tayfun, Mark Kantrowitz Organizations: Anadolu Agency, Getty, Fidelity Locations: View , California, United States

☆ Borrowers should avoid getting hopes up for Biden's next round of student loan forgiveness, expert says
▼ + stars: | 2023-08-02 | by ( Annie Nova | ) www.cnbc.com time to read: +1 min

After the Supreme Court struck down President Joe Biden's original student loan forgiveness plan, Biden said he would pursue a new path to deliver relief to holders of federal educational debt. "Borrowers should avoid getting their hopes up for forgiveness," said higher education expert Mark Kantrowitz. At the end of June, the high court justices ruled that the executive branch didn't have the authority to widely cancel people's debts. "That would be easier to justify in front of a court that is skeptical of broad authority," said Luke Herrine, assistant professor of law at the University of Alabama. "As the president said, he'll be fighting to get relief to as many borrowers as possible, as quickly as possible," Hasan said.

Persons: Joe Biden's, Biden, Mark Kantrowitz, Luke Herrine, Abdullah Hasan, he'll, Hasan Organizations: Finance, University of Alabama

☆ Biden administration launches new SAVE student loan repayment plan. Here's how to apply
▼ + stars: | 2023-07-31 | by ( Annie Nova | ) www.cnbc.com time to read: +1 min

U.S. President Joe Biden, joined by Education Secretary Miguel Cardona, speaks on student loan debt in the Roosevelt Room of the White House August 24, 2022 in Washington, DC. Alex Wong | Getty Images News | Getty ImagesHow the SAVE student loan plan worksInstead of paying 10% of their discretionary income a month toward their undergraduate student debt under the previous Revised Pay As You Earn Repayment Plan, or REPAYE, plan, borrowers will eventually be required to pay just 5% of their discretionary income under the SAVE plan. "The SAVE plan is very generous to borrowers, almost like a grant after the fact," said higher education expert Mark Kantrowitz. Still, the Education Department says borrowers who sign up for the plan this summer will have their application processed before student loan repayments resume in October. How to apply for SAVE, and what info you needYou can apply for SAVE directly on the Education Department website.

Persons: Joe Biden, Education Secretary Miguel Cardona, Alex Wong, Mark Kantrowitz, Kantrowitz Organizations: Education Secretary, Getty, SAVE, Education Department Locations: Washington , DC

☆ When is your next federal student loan bill due? How to figure it out
▼ + stars: | 2023-07-28 | by ( Annie Nova | ) www.cnbc.com time to read: +1 min

Johnnygreig | E+ | Getty ImagesInterest will start accruing in SeptemberAlthough federal student loan payments won't be due until October, interest will continue collecting on your debt again on Sept. 1, the Education Department says. The accrual of interest has been suspended on most federal student loans since March 2020. You can contact your loan servicer or log in to StudentAid.gov to learn your exact due date, said higher education expert Mark Kantrowitz. Recent graduates, meanwhile, may get even more time if they're still in their grace period, Kantrowitz said. For example, loans will not go into default and delinquencies will not be reported to credit reporting agencies, Kantrowitz said.

Persons: Mark Kantrowitz, they're, Kantrowitz, Grace Organizations: Education Department Locations: StudentAid.gov

☆ 3 ways you can still get student loan forgiveness despite the Supreme Court ruling
▼ + stars: | 2023-07-27 | by ( Annie Nova | ) www.cnbc.com time to read: +3 min

"Income-driven repayment plans are also student loan forgiveness plans," Kantrowitz said. Full-time teachers who work for five consecutive years in a low-income school may be eligible for up to $17,500 in loan forgiveness under the Teacher Loan Forgiveness Program. The Nurse Corps Loan Repayment Program allows certain nurses to get up to 85% of their student debt canceled. Mark Kantrowitz higher education expertFederal agencies also offer student loan repayment assistance programs, Kantrowitz said. Meanwhile, there are numerous state-level student loan forgiveness programs.

Persons: Biden, Kantrowitz, George W, Bush, Mark Organizations: Istock, Getty, Public, Consumer Financial, Bureau, U.S ., Personnel Management

The Biden Administration announced $39 billion in automatic loan forgiveness to 804,000, according to a July 14 press release from the U.S. Department of Education. This wave of student loan forgiveness is separate from the forgiveness plan outlined in August 2022 that the Supreme Court recently struck down in June 2023. Under Secretary James Kvaal said in the statement that "millions of borrowers had earned loan forgiveness but never received it." Who qualifies for the Biden Administration's student loan forgiveness? With the Biden administration's widespread student debt relief blocked by the Supreme Court, the future of student loan forgiveness is currently on hold.

Persons: James Kvaal, Kamala Harris, Mark Kantrowitz, they've, accrual Organizations: Biden Administration, U.S . Department of Education, Supreme Court, Federal, Department of Education, Biden, CNBC, of Education, Department, Education, Supreme, The, CNBC Select's, Facebook, Twitter

☆ 2 big takeaways from the Supreme Court ruling on Biden's student loan forgiveness plan
▼ + stars: | 2023-07-16 | by ( Annie Nova | ) www.cnbc.com time to read: +4 min

Supreme Court justices listen to arguments. U.S. Supreme Court Chief Justice John G. Roberts poses during a group portrait at the Supreme Court in Washington, U.S., October 7, 2022. They pointed out that the lender's revenue was actually expected to rise because of some student loan servicers recently leaving the space and it picking up extra accounts. "I was surprised the court found Missouri had standing," said higher education expert Mark Kantrowitz. That law was passed in the aftermath of the 9/11 terrorist attacks, and grants the president broad power to revise student loan programs during national emergencies.

Persons: Bill Hennessey, Joe Biden's, John Roberts, Roberts, John G, Evelyn Hockstein, servicers, Mark Kantrowitz, Luke Herrine, Antonin Scalia, Herrine, Elena Kagan, Kagan Organizations: Biden, Finance, GOP, Missouri Higher Education Loan Authority, Supreme, Reuters, University of Alabama, Liberal, U.S . Department of Education Locations: — Arkansas, Iowa , Kansas , Missouri , Nebraska, South Carolina, . Nebraska, Missouri, Washington , U.S, delinquencies

☆ Federal student loan repayment is about to change in a big way. What borrowers need to know
▼ + stars: | 2023-07-07 | by ( Annie Nova | ) www.cnbc.com time to read: +1 min

When federal student loan borrowers resume their payments in the fall, they'll find another repayment option available to them. The U.S. Department of Education said borrowers can enroll in "the most affordable repayment plan ever created" later this summer, and before the over three-year-long pause on federal student loan payments concludes. According to the Education Department, the Saving on a Valuable Education, or SAVE plan, is an income-driven repayment plan that can cut borrowers' monthly payments in half, and will leave many people with a $0 monthly bill. "The SAVE plan is very generous to borrowers, almost like a grant after the fact," said higher education expert Mark Kantrowitz. Borrowers who make under $15 an hour won't need to make any payments, the department says.

Persons: they'll, Mark Kantrowitz, Kantrowitz Organizations: U.S . Department of Education, Education Department, Valuable Education, Finance

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