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☆ Student loan relief is gone for millions of Americans — here's what it means for retailers
▼ + stars: | 2023-06-30 | by ( Melissa Repko | In Melissa-Repko | ) www.cnbc.com time to read: +4 min

Biden's plan would have eliminated her remaining student debt balance. KeyBanc's Thomas said the student loan payment pause was yet another pandemic tail wind for retailers. Estimates vary on how much student loan borrowers will pay each month. Kantrowitz said there is little data on how Americans used the money that they did not spend on student debt. He said the student loan changes are modest compared with the pinch that people feel from inflation or the dwindling of pandemic-strengthened savings accounts.

Persons: Brent Lewis, Lenèe Gill, Pell, Gill, KeyBanc's Thomas, Mark Kantrowitz, Kantrowitz, it's, Brett House, Mario Anzuoni Organizations: Old Navy, Denver, Getty, Louisiana State University, Walmart, Nutrition, Bank of America Institute, Columbia, Maxx, TJX Cos Inc Locations: Denver , Colorado, Pasadena , California

☆ Supreme Court decision on student loan forgiveness expected Friday
▼ + stars: | 2023-06-29 | by ( Annie Nova | ) www.cnbc.com time to read: +2 min

Visitors with signs regarding student loan payments outside of the US Supreme Court in Washington, DC, US, on Tuesday, June 27, 2023. Al Drago | Bloomberg | Getty ImagesWhat's at stake in loan forgiveness decisionThe justices' ruling will determine whether the Biden administration can move forward with its plan to wipe out more than a quarter of the country's $1.7 trillion in outstanding federal student debt. Roughly 14 million people would have their student debt entirely cleared by the program, according to an estimate by higher education expert Mark Kantrowitz. Justices consider executive authority to cancel debtIn the cases, the justices examined whether Biden has the power to forgive so much student debt without authorization from Congress. The country was operating under an emergency declaration due to Covid-19 when the president rolled out his forgiveness plan.

Persons: Al Drago, Biden, Mark Kantrowitz, Grant, overreach Organizations: US, Bloomberg, Getty, Republican, Supreme, GOP, South Carolina —, Job, Network Foundation Locations: Washington , DC, — Arkansas, Iowa , Kansas , Missouri , Nebraska, South Carolina

☆ How to Pay Off Your Student Loans
▼ + stars: | 2023-06-28 | by ( Rebecca Safier | ) www.wsj.com time to read: +13 min

Here’s how to pay off student loans in a way that works for your budget and goals. Look into specialized loan forgiveness programsWhile the Supreme Court hasn’t shared its ruling on Biden’s widespread forgiveness initiative yet, there are other options for loan discharge, such as Public Service Loan Forgiveness and Teacher Loan Forgiveness. You can pay off federal student loans early, as there’s no student loan prepayment penalty. If you want to retain access to federal protections, it wouldn’t make sense to refinance your federal student loans. In the end, there’s no single right way to pay off student loans faster.

Persons: Rebecca Safier, Biden’s, ”, Robert Farrington, you’re, you’ve, Michael Lux, “, Farrington, Autopay, servicers, autopay, servicer Nelnet, hasn’t, Adam Minsky, You’ll, Mark Kantrowitz Organizations: Education Department, College Investor, millennials, Federal, Aid, Grad, Student Loan Sherpa, Student Aid, autopay, Peace Corps, Corinthian, Education Locations: “, SavingforCollege.com

☆ It's official: Student loan payments will restart in October, Education Department says
▼ + stars: | 2023-06-20 | by ( Annie Nova | ) www.cnbc.com time to read: +5 min

The Education Department posted on its website that "payments will be due starting in October," and a recent law passed by Congress will make changing that plan difficult. As a result of the policy, the average borrower likely saved around $15,000 in student loan payments, Kantrowitz said. They sought to repeal Biden's executive action granting student loan forgiveness, but the Biden administration refused to agree to that. Interest will pick up in September, payments in OctoberThe Education Department says borrowers will be expected to make their first post-pause payment in October. For those who still have a balance after the relief, the Education Department has said it plans to "re-amortize" borrowers' lower debts.

Persons: Persis Yu, Donald Trump, Mark Kantrowitz, Kantrowitz, Joe Biden, Biden, Miguel Cardona, That's Organizations: Istock, U.S . Department of Education, Education, Congress, Student, Protection, Republicans, Finance, Department, Biden, Kantrowitz, Education Department

☆ Here are key things to know as Supreme Court nears decision on Biden's student loan forgiveness
▼ + stars: | 2023-06-16 | by ( Annie Nova | ) www.cnbc.com time to read: +5 min

The United States Supreme Court Building Geoff Livingston | Moment | Getty Images1. You'll be able to read the ruling on the Supreme Court's website, likely some time in the morning of decision day. A top Education Department official recently warned that resuming student loan bills without Biden's loan cancellation could trigger a historic rise in delinquencies and defaults. They said the decreased revenue for MOHELA, or the Missouri Higher Education Loan Authority, could leave the agency unable to meet its financial obligations to Missouri. Student loan borrowers gathered outside the U.S. Supreme Court on Feb. 27, 2023, the night before the court hears two cases on student loan forgiveness.

Persons: Geoff Livingston, Mark Kantrowitz, Kantrowitz, You'll, Biden, Elizabeth Prelogar, Prelogar, they'd, Mark, servicers, Amy Coney Barrett, James A, Campbell, Barrett wasn't, you've, Annie Nova Organizations: United States Supreme, Supreme, Department, Republican, GOP, South Carolina –, Job, Network Foundation, Missouri Higher Education Loan Authority, CNBC, U.S Locations: delinquencies, — Arkansas, Iowa , Kansas , Missouri , Nebraska, South Carolina, Missouri, Nebraska

☆ 1 in 5 student loan borrowers at risk of struggling when payments resume, consumer watchdog says
▼ + stars: | 2023-06-09 | by ( Annie Nova | ) www.cnbc.com time to read: +3 min

Yuliya Taba | E+ | Getty ImagesThe Consumer Financial Protection Bureau is warning that roughly 1 in 5 student loan borrowers have financial risk factors that could cause them to struggle when their payments resume in the fall. What to do if Biden's student debt plan is struck downHere's how things go so bad with student loan debt in the U.S. Student loan borrowers are deeper in debtMeanwhile, more than half of student loan borrowers expected to resume their payments have higher monthly debt-related expenses than they did before the pause on bills began (excluding their student debt or mortgage payment), the CFPB writes. While federal student loan payments were suspended, many borrowers probably used their freed-up cash to take on more debt, Kantrowitz said. However, the CFPB's findings show millions of student loan borrowers will resume their payments in a more precarious financial situation.

Persons: Yuliya, Joe Biden, Kentia Elbaum, Justice Barrett, Mark Kantrowitz, Kantrowitz, Persis Yu Organizations: Financial, U.S . Department of Education, Finance, Consumer, Supreme, Student, Protection Locations: U.S, delinquencies

☆ Borrowers brace for student loan bills to resume — '$600 a month, where is that going to come from?'
▼ + stars: | 2023-06-04 | by ( Annie Nova | ) www.cnbc.com time to read: +6 min

As a result of the policy, the average borrower likely saved around $15,000 in student loan payments, Kantrowitz said. ″[T]he one-time student loan debt relief program was intended to avoid" that problem, he added. Yet consumer advocates say the troubles for student loan borrowers are far from over. "Borrowers are not ready to resume payments," said Persis Yu, deputy executive director at the Student Borrower Protection Center. To be able to afford his student loan payment in September, Berlet plans to cut back on how much food he buys.

Persons: Donald Trump, Mark Kantrowitz, Kantrowitz, James Kvaal, Joe Biden's, Mark, Kvaal, Kevin McCarthy, Biden, McCarthy, Persis Yu, Yu, they'd, Paul, Berlet, he'll, Brooks, didn't, wasn't, Paul Berlet Organizations: Twitter, Student, Protection, Kantrowitz, Education Department, Pennsylvania Higher Education Assistance Agency, Granite State Locations: U.S, Pennsylvania, Granite, Wilmington , Delaware

☆ Senate votes to repeal Biden's student loan forgiveness plan. White House warns Biden will veto
▼ + stars: | 2023-06-01 | by ( Annie Nova | ) www.cnbc.com time to read: +3 min

The Senate voted to repeal President Joe Biden's student loan forgiveness plan on June 1, 2023. Getty Images | BloombergA GOP-led effort to overturn President Joe Biden's sweeping student loan forgiveness plan passed the Senate on Thursday. The measure, which passed the House along party lines last week, would also nullify the pause on student loan payments. More from Personal Finance:Student loan pay pause eased forgiveness for public servantsExperts say SCOTUS will rule against student loan forgivenessWhat's at stake as SCOTUS weighs student loan forgiveness Sen. John Thune, R-S.D., acknowledged that the passage of the legislation was mostly symbolic. "We should help Americans with student debt, not make their problems worse," Schumer said.

Persons: Joe Biden's, Biden, Education Miguel Cardona, —, It's, Mark Kantrowitz, SCOTUS, What's, Sen, John Thune, Thune, Joe Manchin, Manchin, Biden's, Ed Markey, Markey, Chuck Schumer, Schumer Organizations: Education, Getty, Bloomberg, GOP, Finance, Senate, Democrats, Democratic Locations: York

☆ Debt ceiling deal would push student loan borrowers into repayment by fall
▼ + stars: | 2023-05-30 | by ( Annie Nova | ) www.cnbc.com time to read: +2 min

Anadolu Agency | Anadolu Agency | Getty ImagesDeal ends the payment pause, likely for goodThe pause on federal student loan payments is one of the few remaining Covid-related relief measures still in effect. The policy has suspended the accrual of interest on federal student debt and allowed borrowers to forgo making their payments without facing any penalties. watch nowThe White House was aiming to restart student loan payments within months anyway, Kantrowitz said, and so "the legislation does not represent a change in that regard." The Biden administration has warned that resuming student loan payments without being able to carry out its debt forgiveness plan could trigger a historic spike in defaults and delinquencies. Student loan forgiveness, other relief, not in agreement

☆ How the student loan payment pause has made it easier for public servants to get forgiveness
▼ + stars: | 2023-05-26 | by ( Annie Nova | ) www.cnbc.com time to read: +4 min

Skynesher | E+ | Getty ImagesThe pandemic-era policy suspending federal student loan payments has been an especially big win for public servants. Most borrowers have benefited from the payment pause, which has lasted more than three years and spanned two presidencies. Here's what the payment pause has meant for those who are pursuing the relief. Advocates say that public servants deserved such a benefit after the problems that have plagued the loan forgiveness program. When the payment pause on federal student loans ends, likely in September, borrowers will have to resume payments to get credit for PSLF.

☆ Here's the 'most likely scenario' for when student loan payments could restart — and how to prepare
▼ + stars: | 2023-05-25 | by ( Annie Nova | ) www.cnbc.com time to read: +1 min

Borrowers may be down to their last few months without a student loan payment. "The most likely scenario is repayment restarts in September," said higher education expert Mark Kantrowitz. Scott Buchanan, executive director of the Student Loan Servicing Alliance, a trade group for federal student loan servicers, also said lenders are actively preparing for the bills to restart in September. Readjusting your budget to include a student loan payment again may not be easy. Fortunately, there are steps you can take to be more prepared.

Persons: Mark Kantrowitz, Scott Buchanan, servicers, Biden Organizations: Biden, U.S . Department of Education, Student Loan, Alliance, Finance, House Democrats, Social

☆ Expect Interest Rates on Federal Student Loans to Rise
▼ + stars: | 2023-05-19 | by ( Ann Carrns | ) www.nytimes.com time to read: +1 min

Interest rates on new federal student loans are expected to exceed 5 percent for the first time in five years, adding to the pressure on families already struggling to pay for college. Rates for undergraduate student loans for the coming academic year are expected to rise to nearly 5.50 percent, from 4.99 percent. Rates on other types of federal education loans will probably rise as well. Rates stay fixed for the life of a federal student loan, but new loans are priced each July, based on the 10-year Treasury bond auction in May. The rates are influenced by the Federal Reserve, which has been aggressively raising interest rates in an attempt to cool inflation.

☆ Biden administration has canceled $66 billion in student debt. How to know if you qualify
▼ + stars: | 2023-05-14 | by ( Annie Nova | ) www.cnbc.com time to read: +6 min

Still, advocates are worried about the administration's plan to soon resume federal student loan payments, which have been suspended since March 2020, without deeper debt cancellation. Even before the Covid-19 pandemic, 1 in 4 student loan borrowers were in delinquency or default. Here's a breakdown of the debt relief already granted — and how to know if you qualify for it. Defrauded borrowers got $13 billion in reliefThe Biden administration has been focused on canceling the student debt of borrowers who say their colleges misled them. Betsy Mayotte president of The Institute of Student Loan AdvisorsThe Project on Predatory Lending at Harvard University has a list of some of the institutions that were part of a student loan cancellation settlement.

☆ Making these 5 moves can help you save big on the massive cost of college
▼ + stars: | 2023-05-04 | by ( Sharon Epperson | In Sharoneppersoncnbc | ) www.cnbc.com time to read: +7 min

As the mother of a college sophomore and high school senior, I know thinking about paying for college is daunting. Financial aid is determined by income information that is not necessarily up to date. If your circumstances are now different, that should be brought to the financial aid office's attention, he said. If you're concerned about making ends meet based on the financial aid award letter your child has already received, you can still ask for more aid. "So performing well throughout your high school career is not only important for admission but also for scholarship awards."

☆ After being on pause for more than 3 years, student loan payments are expected to resume soon
▼ + stars: | 2023-04-28 | by ( Annie Nova | ) www.cnbc.com time to read: +2 min

Three companies that serviced federal student loans — Navient , the Pennsylvania Higher Education Assistance Agency (also known as FedLoan) and Granite State — all said they'd be ending their relationship with the government. Impacted borrowers should get multiple notices, said Scott Buchanan, executive director of the Student Loan Servicing Alliance, a trade group for federal student loan servicers. But if you can afford it, the standard repayment plan is just 10 years. To calculate how much your monthly bill would be under different plans, use one of the calculators at Studentaid.gov or Freestudentloanadvice.org, said Betsy Mayotte, president of The Institute of Student Loan Advisors, a nonprofit. If you do decide to change your repayment plan, Mayotte recommends submitting that application with your servicer before payments turn back on.

☆ Biden's student loan forgiveness plan may cause a drop in credit scores for some borrowers
▼ + stars: | 2023-04-10 | by ( Annie Nova | ) www.cnbc.com time to read: +1 min

The Biden administration's sweeping plan to cancel up to $20,000 in student debt for tens of millions of Americans may have an unintended, though hopefully temporary, consequence for some people, experts say. "For many borrowers, it will cause their credit scores to drop," said higher education expert Mark Kantrowitz. Here's why: Throughout the three-year pause on federal student loan payments, borrowers' accounts have been reported to the credit bureaus as current, Kantrowitz said. More from Personal Finance:Here are the 2 Supreme Court student loan forgiveness casesFederal student loan payments could restart in roughly 2 months, or 6Being behind on federal student loans can lead to more money problemsOn-time payments help boost people's scores. Of course, a temporary dip in a credit score will not likely matter much to someone getting thousands of dollars in debt forgiveness.

☆ How borrowers can keep their student loan payments on hold once bills resume
▼ + stars: | 2023-03-29 | by ( Annie Nova | ) www.cnbc.com time to read: +4 min

watch nowThe Education Department in November said student bills would resume 60 days after the litigation over its student loan forgiveness plan resolves. If you're unemployed when student loan payments resume, you can request an unemployment deferment with your servicer. The maximum time you can use an unemployment or hardship deferment is usually three years per type. Forbearances also keep bills on holdStudent loan borrowers who don't qualify for a deferment may request a forbearance. Kantrowitz provided an example: A $30,000 student loan with a 5% interest rate would increase by $1,500 a year under a forbearance.

☆ Follow this rule of thumb to avoid taking on too much student debt, college experts say
▼ + stars: | 2023-03-24 | by ( Annie Nova | ) www.cnbc.com time to read: +1 min

As students weigh where to attend, making sure they won't borrow too much is key, experts say. The consequences of taking on too much student debt can be severe. "You may also have to take a job that pays better as opposed to the job that matches your career goals." Kantrowitz found in his research that under a third of student loan borrowers who took out $20,000 or less were stressed by their debt, compared with over 60% of those who'd taken out $100,000 or more. "If your total student loan debt at graduation is less than your annual starting salary, you should be able to repay your loans in 10 years or less," he said.

☆ What student loan borrowers need to know about the 2023 tax season
▼ + stars: | 2023-03-21 | by ( Annie Nova | ) www.cnbc.com time to read: +2 min

Prostock-studio | Istock | Getty ImagesYou probably can't claim a student loan interest deductionBefore the Covid pandemic, nearly 13 million taxpayers took advantage of the student loan interest deduction, which allows borrowers to deduct up to $2,500 a year in interest payments they've made on their private or federal student loans. "You can claim the student loan interest deduction based only on amounts actually paid," Kantrowitz said. The break is only for payments to interest, Kantrowitz said, and interest has been suspended now for years. The best way to determine if you have potential interest to claim is to contact your loan servicer, said Betsy Mayotte, president of The Institute of Student Loan Advisors. Your lender reports your interest payments over a certain amount to the IRS on a tax form called a 1098-E, and should provide you with a copy, too.

☆ When Will Student Loan Payments Resume?
▼ + stars: | 2023-03-06 | by ( ) www.wsj.com time to read: +7 min

When will student loan payments resume? While student loan payments have been put on ice since March of 2020, you may have to start paying them back again this summer or fall. Student loan payments are set to resume 60 days after June 30, 2023, or 60 days after the Court’s decision, whichever comes first. We will notify borrowers before payments restart.”That means your federal student loan payments will be due at the end of August 2023 or sooner. Don’t expect your student loan payments to automatically debit from your account, though.

☆ What to do if Supreme Court strikes down Biden's student loan forgiveness plan
▼ + stars: | 2023-03-06 | by ( Annie Nova | ) www.cnbc.com time to read: +5 min

Demonstrators in favor of canceling student debt gather outside the U.S. Supreme Court in Washington, D.C., on Feb. 28, 2023. Bloomberg | Bloomberg | Getty ImagesKeep your payments on holdThe Covid pandemic-era policy suspending federal student loan payments and the accrual of interest is still active. Those are the ideal ways to postpone your federal student loan payments, because interest doesn't accrue. For example, 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. And lawyers in Texas who work for specific legal aid programs may be eligible for the Texas Student Loan Repayment Assistance Program.

☆ Biden administration lawyer may have saved student loan forgiveness plan at Supreme Court
▼ + stars: | 2023-03-01 | by ( Annie Nova | ) www.cnbc.com time to read: +1 min

The government's top Supreme Court lawyer may have saved President Joe Biden's $400 billion student loan forgiveness plan from what experts considered all-but-certain defeat. Experts lobbed praise on Solicitor General Elizabeth Prelogar, the lawyer who represented the Biden administration in front of the nine justices on Tuesday. "The Biden administration now seems more likely than not to win the cases," said higher education expert Mark Kantrowitz. University of Chicago Illinois Law Professor Steven Schwinn agreed: "Prelogar knocked it out of the park." On Wednesday, Fordham Law professor Jed Shugerman tweeted that he remains "struck by SG Elizabeth Prelogar's brilliant performance."

Around 40% of outstanding federal student loan debt is now taken on post-college for master's and PhD programs. The average student debt balance among parents was more than $35,000 in 2018-19, up from around $5,000 in the early 1990s. Meanwhile, the private student loan market has grown more than 70% over the last decade, according to the Student Borrower Protection Center. Americans now owe more in private student loans than they do for past-due medical debt or payday loans. Every year millions of new students are pumped into the student loan system while current borrowers struggle to exit it.

☆ When will student loan payments restart? What borrowers need to know
▼ + stars: | 2023-02-21 | by ( Annie Nova | ) www.cnbc.com time to read: +2 min

Skynesher | E+ | Getty ImagesRestart depends on Supreme Court decision timingWhen student loan payments restart depends on how long the Supreme Court justices take to issue a decision on the president's plan, said higher education expert Mark Kantrowitz. Servicers will determine when your payment is dueFederal student loan payments have been on pause since March 2020, when the coronavirus pandemic first hit the U.S. and crippled the economy. "They're not going to restart everybody's student loan payments on the same day, everywhere, all at once," he said. Two of these lawsuits — which the Supreme Court has agreed to hear oral arguments for — have been successful in at least temporarily halting the relief. Sixty days will be enough to forgive student loan debt if the president's plan survives.

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

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

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