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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
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
[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
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
In October, student-loan borrowers will start making payments again. The Education Department announced a number of steps to ease the transition back into repayment. In March 2020, former President Donald Trump first implemented the student-loan payment pause, with waived interest, to give millions of federal borrowers financial relief during the pandemic. An Education Department spokesperson confirmed in June that there is no leeway with that provision. "Student loan interest will resume starting on September 1, 2023, and payments will be due starting in October," a department spokesperson said.
Persons: Donald Trump, Joe Biden, Biden, , Massachusetts Sen, Elizabeth Warren, New Jersey Sen, Bob Menendez, servicers, Virginia Foxx, Sen, Bill Cassidy —, doesn't, Cassidy, we'll, Miguel Cardona Organizations: The Education Department, Service, Federal, An Education Department, Education Department, Higher, SAVE, Democratic, House, Department Locations: Wall, Silicon, Massachusetts, New Jersey
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
The Education Department finalized a rule to allow state oversight into federal student-loan servicers. The rule is intended to protect borrowers from misleading behavior or inaccurate payment counts. The department concluded that the Higher Education Act of 1965 allows states to play a role in regulating federal loan servicers to better protect borrowers from misleading behavior. "States may consider and adopt additional measures which protect borrowers and can be harmonized with Federal law," it said. The notice does have some limits on what states can do, like ruling a federal loan servicer in a state cannot continue operations.
Persons: Joe Biden's, Miguel Cardona, Donald Trump's, Betsy DeVos, , servicers Organizations: Education Department, Service, Joe Biden's Education Department, Federal, Higher, Department, servicer Locations: Wall, Silicon, Federal,
House Republicans are proposing cutting funding for Federal Student Aid by $265 million. Last week, Republicans on the House Appropriations Committee released a series of bills for funding federal agencies through fiscal year 2024. "Right now, House Republicans are pursuing an appropriations bill that cuts $22.5 BILLION from education," Education Secretary Miguel Cardona wrote on Twitter. Cutting funding could pose significant challenges to borrowers, along with the operations of Federal Student Aid. Some Democratic lawmakers have also expressed concerns about a lack of funding for Federal Student Aid.
Persons: it's, Joe Biden's, Biden, Miguel Cardona, Jared Bass, Federal Student Aid . Massachusetts Sen, Elizabeth Warren, Tammy Baldwin, Shelley Moore Capito Organizations: Republicans, Federal, Aid, Service, Republican, Labor, Health, Human Services, Education, House Republicans, Twitter, Federal Student Aid, Public, Center, American Progress, Democratic, Federal Student Aid ., Department of Education, Education Department Locations: Wall, Silicon, Federal Student Aid . Massachusetts
Sen. Elizabeth Warren wants Biden to consider actions to help student-loan borrowers who miss payments. Warren's suggestions include getting rid of student debt for borrowers in long-term default. To help those in default, the department has already announced a "Fresh Start" program that will restore 7.5 million borrowers behind on payments to good standing once payments resume. Still, as Warren wrote, borrowers might still "fall through the cracks" once payments resume — and wants Biden to reform the process for defaulted borrowers. "I want to reassure you — the Biden-Harris team is not done fighting for student loan borrowers or for working families," Cardona recently wrote on Twitter.
Persons: Sen, Elizabeth Warren, Biden, Massachusetts Sen, Joe Biden, — Warren, Warren, Secretary Miguel Cardona, Biden's, Miguel Cardona, Harris, Cardona Organizations: Service, Education Department, Department, Secretary, Higher, White, Biden, Twitter Locations: Wall, Silicon, Massachusetts
The Biden administration will forgive $39 billion in student debt for 804,000 borrowers, it said on Friday. The announcement comes weeks after the Supreme Court blocked a wider plan to forgive student debts. "For far too long, borrowers fell through the cracks of a broken system that failed to keep accurate track of their progress towards forgiveness," Education Secretary Miguel Cardona said. "Administrative failures" led to borrowers being denied the relief they were eligible for under their repayment plans, the Education Department said. "For far too long, borrowers fell through the cracks of a broken system that failed to keep accurate track of their progress towards forgiveness," Education Secretary Miguel Cardona said in a written statement.
Persons: Biden, Miguel Cardona, they've Organizations: Service, Education Department Locations: Wall, Silicon
U.S. President Joe Biden is joined by Education Secretary Miguel Cardona as he announces new actions to protect borrowers after the Supreme Court struck down his student loan forgiveness plan in the Roosevelt Room at the White House on June 30, 2023 in Washington, DC. Chip Somodevilla | GettyExtra protections follow Supreme Court decisionThis aid is not another payment pause extensionFormer 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. The pause has since been extended eight times. The latest announcement by Biden is not another extension of that policy. (Borrowers' official due date will depend on their loan terms.)
Persons: Joe Biden, Education Secretary Miguel Cardona, Chip Somodevilla, Donald Trump, Biden Organizations: Education Secretary, White House Locations: Washington ,
Biden is planning to cancel student debt under a new law after the Supreme Court struck down his first plan. He'll use the Higher Education Act, which requires hearings and public comment. The Higher Education Act states that the Education Department can "enforce, pay, compromise, waive, or release any right, title, claim, lien, or demand" related to federal student debt. Given the new standards surrounding the Higher Education Act, it's not yet guaranteed that the same borrowers who benefitted from Biden's first proposal will qualify for the president's new plan. "However, the Secretary has directed his staff to explore policy options for debt relief that will help as many people as possible."
Persons: Biden, , Joe Biden's, It's, Miguel Cardona, it's, Bharat Ramamurti, Cardona, Alexandria Ocasio, Cortez, Ro Khanna, SCOTUS, Khanna Organizations: Service, Higher, Education Department, Education, National Economic Council, New York Rep, CNN, Twitter Locations: Biden's, Alexandria
After the Supreme Court struck down the Biden administration's plan to wipe away about $430 billion dollars in student loan debt, many borrowers are now scrambling to figure out exactly when their next payment is due, how much they owe and whether they'll be able to afford that bill. President Joe Biden has promised to continue to work on a proposal to forgive student loan debt. Yet, "under the law, this path could take time," admitted U.S. Education Secretary Miguel Cardona, vowing to keep borrowers updated in the months ahead. For now, the Biden administration is taking action to help provide some relief to borrowers by offering a more affordable income-driven repayment plan.
Persons: Biden, they'll, Joe Biden, Miguel Cardona Organizations: Education
After the Supreme Court struck down Biden's first student-debt relief plan, he announced he'll be trying again. He started the process to use the Higher Education Act of 1965, but it will take longer this time. On Friday, the high court struck down Biden's first plan to cancel up to $20,000 in student debt for federal borrowers using the HEROES Act of 2003. While Republican lawmakers lauded the Supreme Court decision, Democratic lawmakers celebrated Biden's effort to try again under the Higher Education Act. The President has the clear legal authority to cancel student debt under the Higher Education Act.
Persons: he'll, Biden, , Joe Biden, Miguel Cardona, they'll, Cardona, Bharat Ramamurti, Ramamurti, they're, Warren Organizations: Service, Friday's, Supreme Court, Education, Higher, National Economic Council, Republican, Democratic, Twitter
Activists are taking aim at Harvard's preference for legacy applicants in the wake of a landmark Supreme Court ruling. A federal civil rights complaint alleges Harvard is breaking the law with its current preferences. Internal university data illustrates that white applicants overwhelmingly benefit from the current standards. While "legacy applicants were nearly 6 times more likely to be admitted compared to nonlegacy applicants." The civil rights complaint comes after Education Secretary Miguel Cardona urged colleges to take a hard look at legacy preferences they might offer.
Persons: , John Roberts, Rakesh Khurana, Khurana, Miguel Cardona, Cardona Organizations: Supreme, Harvard, Service, Department of Education's, Civil Rights, Ivy League, Community Economic, Greater Boston Latino Network, Civil, Harvard College, University of North, Education, Associated Press Locations: Universities, England, University of North Carolina
Biden announced a new plan to transition borrowers back into repayment after his broad debt relief was struck down. The plan includes a 12-month "on-ramp" period and a new income-driven repayment plan. Along with the on-ramp period, Cardona also said his department has finalized a new income-driven repayment plan for borrowers. If a borrower is already enrolled in the REPAYE plan — an existing income-driven repayment plan — they will automatically be put on the SAVE plan when it becomes available. If a borrower is enrolled in an income-driven repayment plan, they can go to studentaid.gov and select the "My Aid" page, which will list their repayment plan.
Persons: Biden, , Joe Biden's, overreached, Miguel Cardona, Cardona, we'll, I'm Organizations: Service, Higher, Education Department, Public, Valuable Education
On Friday, the Supreme Court decided in a 6-3 ruling that Biden's plan to cancel up to $20,000 in student debt cannot move forward. The majority ruled that the states had standing to involve MOHELA in their case, and the law Biden used to cancel student debt demonstrated an overreach of authority. "I believe that the Court's decision to strike down our student debt relief plan is wrong," he added. "Despite this legally unsound Supreme Court decision, the President has the clear authority under the Higher Education Act of 1965 to cancel student debt. "The President has additional legal tools to cancel student debt — and he should use them.
Persons: , Joe Biden's, it's, Friday's, Brown, Biden, John Roberts, Vermont Sen, Bernie Sanders, Sanders, Massachusetts Sen, Elizabeth Warren, Warren, What's, Mr, Virginia Foxx, Ayanna Pressley, Miguel Cardona, Pressley, Cardona Organizations: Biden, Service, Supreme, US Department of Education, . Nebraska, Administration, Department, Higher, Biden Administration, Democratic, Legal Services Center of Harvard Law School, Massachusetts, Education Department, Republican, Education Locations: ., Vermont, Massachusetts
Thwarted by the conservative-leaning court, Biden told reporters that his administration would pursue student loan relief through a different avenue, the Higher Education Act. In a 6-3 decision earlier on Friday, the Supreme Court blocked Biden's plan to cancel $430 billion in student loan debt. "I believe the court's decision to strike down my student debt relief program was a mistake, was wrong. About 53% of Americans supported Biden's original student loan forgiveness program, while 81% of Democrats did so, a Reuters/Ipsos poll showed this year. "Americans saw right through this desperate vote grab, and we are thankful that the Supreme Court did as well."
Persons: Joe Biden, Biden, I'm, Leah Millis, Elizabeth Warren, Democrat Alexandria Ocasio, Cortez, Miguel Cardona, , Ronna McDaniel, Steve Holland, Jeff Mason, Rami Ayyub, Andrea Shalal, Trevor Hunnicutt, Timothy Ahmann, Jonathan Oatis, Matthew Lewis Organizations: U.S, Supreme, Higher, The Education Department, Republicans, Democratic, Education Department, Progressive, White, REUTERS, Twitter, Democrat, Reuters, Republican, Education, Republican National Committee, Thomson Locations: Washington , U.S, Washington
The Supreme Court struck down Biden's student-loan forgiveness plan. It ruled that the relief under Biden's current plan is illegal and cannot move forward. In November, two conservative-backed lawsuits succeeded in pausing the implementation of Biden's debt relief plan, just one month after applications for the loan forgiveness opened up. "Resuming student debt payments in the middle of an affordability crisis is unconscionable. President Biden needs to deliver on his promise to cancel student debt," Khanna wrote on Twitter.
Persons: , Joe Biden's, Pell Grant, Biden, Brown, Miguel Cardona, Ro Khanna, Alexandria Ocasio, Cortez, Khanna, We're Organizations: Service, Republican, US Department of Education, Department of Education, . Nebraska, Democratic, , The Education Department, Education, Supreme, Twitter, Politico, Higher Locations: . Nebraska, ., Alexandria
On Friday, the Supreme Court struck down President Biden's student-loan forgiveness plan. Chief Justice John Roberts said in his opinion that the Secretary of Education wasn't the proper person to implement it. The Supreme Court thinks it's a matter suited to the legislative branch, rather than the executive one. "The question here is not whether something should be done; it is who has the authority to do it," Roberts concluded. So he could potentially enact a plan to deliver relief using another law, like the Higher Education Act of 1965, which does not rely on a national emergency.
Persons: Biden's, John Roberts, , Joe Biden's, Miguel Cardona's, Biden, John Roberts scathingly, Roberts, Massachusetts Sen, Elizabeth Warren, they've Organizations: Service, Department, Republican, Higher, Democratic, Twitter Locations: wheelhouse, Massachusetts
After describing Friday's Supreme Court ruling against student debt relief as "unthinkable," President Joe Biden announced he'd find a new way to ease the burden of student loan payments. Borrowers left reeling after Friday's Supreme Court decisionWhile Biden said the "fight is not over" in his press conference, student borrowers who spoke to CNBC Make It were disheartened about the Supreme Court ruling earlier in the day. Stevens has $40,000 in student loan debt after graduating with a bachelor's degree in secondary education from Northern Arizona University in 2015. She would have qualified for $20,000 in student debt relief if the Biden administration's executive action had been allowed to proceed. If you plan on running for president, you're going to have to have a plan for student loan debt forgiveness.
Persons: Joe Biden, Education Secretary Miguel Cardona, he'd, Biden, Shayna Stevens, Stevens Organizations: Education Secretary, White House, Higher, Higher Education, of Education, CNBC, Arizona Students ' Association, Northern Arizona University, Biden, Arizona Students, Association Locations: Washington , DC
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