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☆ How Biden's new student-loan repayment plan could keep borrowers from owing far more debt than they originally took out
▼ + stars: | 2023-08-22 | by ( Ayelet Sheffey | ) www.businessinsider.com time to read: +4 min

Biden formally launched the new income-driven repayment plan, known as the SAVE plan. Interest capitalization often keeps borrowers in repayment without being able to touch their principal balance. AdvertisementAdvertisementThe new SAVE plan would work to prevent that from happening. AdvertisementAdvertisementAside from the SAVE plan, the Education Department had previously announced plans to tackle growing interest on borrowers' balances. The formal launch of the SAVE plan comes as the student-loan payment pause is about to end after over three years.

Persons: Biden, Joe Biden's, Biden's Organizations: Service, Economic Advisors, CEA, Education Department, Higher Locations: Wall, Silicon, Biden's

☆ ‘I’ve had this black cloud looming over me’: How private lenders have left millions of college students with no hope for the future
▼ + stars: | 2023-08-21 | by ( Ayelet Sheffey | ) www.businessinsider.com time to read: +15 min

We both do DoorDash, and probably when those federal student loans start up, it'll be more of a necessity to do that." While private debt makes up just about 10% of the $1.7 trillion student-debt mountain in the US — about $136 billion — the industry has exploded over the past decade: the amount of outstanding private debt has jumped an estimated 47% since 2014. "Regardless, the student loan debt that was supposed to be an investment in their futures is dragging them down." To be sure, some private servicers do disclose benefits private borrowers could lose should they choose to refinance. Moran said he didn't regret taking out private student loans because it allowed him to pursue his desired nursing career.

Persons: Brianne Jones, Jones, she's, We're, it'll, Michele Shepard, they've, it's, Shepard, Suzanne Martindale, —, Anna Anderson, you've, It's, Navient, Martindale, Ryan Moran, Moran, Moran isn't, Joe Biden, I've, Anderson, forbearance, Steve Cohen, didn't Organizations: Eastern Michigan University, West, Federal Direct Loan Program, Institute for College, California's Department of Financial Protection, National Consumer Law Center, Consumer Financial, Bureau, Consumer Financial Protection Bureau, — Maryland Locations: Florida, —, California

☆ Generation X Is Staring Down Retirement, and Student Loan Debt
▼ + stars: | 2023-08-17 | by ( Martha C. White | ) www.nytimes.com time to read: +1 min

Ms. Thompson said she was able to use the three-year pause on student loan payments to pay off some other debts. But she estimated she still had another three or four years to go before the remainder of her student loans would be paid off. “In general, we’ve seen clients focusing more on savings and not focusing on those student loans,” he said. “They really didn’t have a plan to address those student loans.”Mr. Graham said a lot of borrowers were surprised when they realized how much student loan debt could grow, since it continued to accrue interest even if the borrower had placed the loan in deferment or forbearance. “I just don’t think they understand the ramifications of the interest being charged on that debt over time,” Mr. Graham said.

Persons: Thompson, “, Ms, “ It’s, ”, Trent Graham, we’ve, Mr, Graham, accrual, ” Mr Locations: GreenPath, deferment, forbearance

☆ Thousands of student-loan borrowers celebrating Biden's latest debt relief might have to pay taxes on it in these 5 states
▼ + stars: | 2023-08-17 | by ( Ayelet Sheffey | ) www.businessinsider.com time to read: +3 min

Biden recently announced student-debt relief for over 800,000 borrowers on income-driven repayment. The American Rescue Plan said debt relief will not be subject to federal taxes through 2025. While most states adopted the same guidance, some states could tax the latest relief. However, states can choose whether to craft their tax laws in accordance with federal law — and while most states have chosen not to tax debt relief, some have. Along with the varying state laws, the blog said that borrowers who receive debt relief through Public Service Loan Forgiveness are exempt from taxes, along with those who receive relief if their school closed down.

Persons: Biden, Joe Biden's, — Organizations: American, Plan, Service, Joe Biden's Education Department, of Education, Mississippi North Carolina Indiana Wisconsin, Arkansas Revenue, Tax Foundation, Public Locations: Wall, Silicon, Mississippi North Carolina, Mississippi North Carolina Indiana Wisconsin Arkansas

☆ A millennial who's paid down $190,000 in student-loan debt shares the budget template he created and why it's effective: 'You're forced to see what's going on'
▼ + stars: | 2023-08-13 | by ( Kathleen Elkins | ) www.businessinsider.com time to read: +7 min

Ian Group has paid down $190,000 in student loans. After wrapping up law school with $190,000 worth of student loans, things didn't exactly play out as Ian Group imagined they would. Courtesy of Ian GroupGroup has two columns in this section: "estimated monthly income" and "actual monthly income." Again, Group has it set up in two columns: "estimated monthly expenses" and "actual monthly expenses." "It brings in your income, expenses, what you're saving and investing, and it gives you the net total," he explained.

Persons: Ian, I'm, he'd, he's, Roth Organizations: Group, overdrawing, Ian Group Locations: Florida

☆ When student loan payments resume, 56% of borrowers say they'll have to choose between their debt and buying groceries
▼ + stars: | 2023-08-13 | by ( Kamaron Mcnair | In Kamaronmcnair | ) www.cnbc.com time to read: +3 min

Federal student loan payments are coming back, and they're going to wreak havoc on borrowers' budgets. Cutting back on nonessential spending will be the most typical way borrowers will adjust to make their student loan payments, according to Credit Karma. Even higher earners will struggle when payments resumeUnsurprisingly, 68% of borrowers with household incomes under $50,000 say they'll have to choose between keeping up with their loan payments and buying necessities, Credit Karma finds. Still, only 34% of borrowers say they'll apply for an IDR plan to lower their monthly payments, according to Credit Karma. 3 tips to manage student loan repayment and other bills

Persons: Biden, Karma Organizations: Karma

☆ 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

☆ Why a stalled Ukrainian offensive could represent a huge political problem for Zelensky in the US
▼ + stars: | 2023-08-09 | by ( Stephen Collinson | ) edition.cnn.com time to read: +10 min

And even if Trump is not the GOP nominee in 2024, ebbing public support for the war could hurt Biden. Therefore, for political, as well as strategic reasons, there is huge pressure on Ukraine’s long-awaited counteroffensive this summer to produce significant battlefield breakthroughs. Any suggestion that Ukraine’s offensive has been bogged down will deepen that skepticism over a prolonged US commitment. Soon after the Russian invasion in February 2022, 62% said the US should do more to support Ukraine. The political dynamics in the House represent a rather precarious foundation for Ukraine’s vital US support, underscoring why a stalled offensive could represent a political disaster for Zelensky in the United States as well as a strategic loss for Ukraine at home.

Persons: Volodymyr Zelensky’s, Vladimir Putin, Joe Biden, Donald Trump, Putin, Trump, Biden, CNN’s Jim Sciutto, bleakly, Ukraine’s, Zelensky, ” Zelensky, ” It’s, Mark Hertling, ” Hertling, darkens, George H.W, George H.W . Bush, Kevin McCarthy, John Kirby, CNN’s Wolf Blitzer, He’s, Chris Christie, Nikki Haley, Mike Pence –, there’s Organizations: CNN, GOP, Senior, Ukraine, Army, Republican, Democratic, Trump Republicans, National Security, New, New Jersey Gov, South Carolina Gov Locations: US, Ukraine, Moscow, United States, NATO, Russia, Kyiv, Washington, Boston, Saudi Arabia, Crimea, George H.W ., Iowa, New Hampshire, New Jersey

☆ Over half of student loan borrowers racked up credit card debt during the payment pause—now experts worry about 'shock'
▼ + stars: | 2023-08-08 | by ( Kamaron Mcnair | In Kamaronmcnair | ) www.cnbc.com time to read: +3 min

Federal student loan borrowers have had a break from paying back their student loans for over three years now. Over 50% of borrowers added debt on regular credit cards during the student loan payment pause and another 31% racked up balances on retail cards, a recent TransUnion analysis found. Here's what's coming for student loan borrowers this fall. "Then you tack on $300 [student debt payment] for the average consumer and that's a pretty significant payment shock," she says. How to lower your student loan payment

Persons: Here's, Grace, Biden, they've, Liz Pagel, Pagel, they're Organizations: CNBC

☆ Some student-loan companies are offering borrowers cheaper payments before the October restart. Making the switch could strip away a range of debt relief programs.
▼ + stars: | 2023-08-05 | by ( Ayelet Sheffey | ) www.businessinsider.com time to read: +5 min

Some student-loan companies are encouraging federal borrowers to refinance before the payment restart. Companies that manage private loans have started reaching out to federal borrowers, encouraging them to refinance their federal debt to get a better deal on payments. For example, SoFi — a student-loan refinancing company — sent letters to borrowers last month with a header reading, "Federal student loan forbearance is ending soon. Consumer Financial Protection Bureau Advisor to the Director Andrea Matthews told Insider in September that "the benefits to having a federal student loan have never been more tangible. Before federal payments resume in October, borrowers can enroll in the Education Department's new SAVE Plan, which is an income-driven repayment plan intended to lower monthly payments.

Persons: Joe Biden's, It's, —, forbearance, Biden's, Earnest, refinancer, refinancers, Andrea Matthews, Tanya Burnett, Burnett Organizations: Service, Education Department, Public, Biden, Consumer Financial Locations: Wall, Silicon

☆ A student-loan company's call center briefly shut down due to 'technical issues' after it started notifying borrowers of their monthly payment amount in October
▼ + stars: | 2023-08-03 | by ( Ayelet Sheffey | ) www.businessinsider.com time to read: +5 min

Student-loan company Nelnet started notifying borrowers of their monthly payments in October. Shortly after, borrowers took to X to complain about inability to reach the company's customer service. Nelnet responded on X that its call center briefly shut down, and it's receiving an influx of calls and emails. The Education Department and student-loan servicers have never transitioned millions of borrowers back into repayment at this scale. Do you have concerns with the return to student-loan repayment?

Persons: Nelnet, —, couldn't, servicers —, Joe Biden, servicers, I'm Organizations: Service, Education Department, The Education Department, Federal Student, Republicans, Federal Student Aid Locations: Wall, Silicon

☆ 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

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

☆ Is Biden's $39 billion student loan forgiveness action legal? 'Be assured it's going to stay,' says expert
▼ + stars: | 2023-07-18 | by ( Greg Iacurci | ) www.cnbc.com time to read: +5 min

Demetrius Freeman/The Washington Post via Getty ImagesHow are the two loan forgiveness actions different? There are four of these plans, which aim to make loan payments more affordable for lower earners. That law gave the president power to revise student loan programs during national emergencies. The Trump administration had leveraged the Heroes Act to implement a student loan payment pause at the onset of the Covid-19 pandemic. However, Congress has already authorized loan forgiveness relative to income-driven repayment plans, dating to when it created them in the 1990s.

Persons: Joe Biden, Education Miguel Cardona, Demetrius Freeman, —, Biden, hasn't, Virginia Foxx, Abby Shafroth, who've, Trump, Shafroth, Kantrowitz Organizations: U.S, Education, Washington, Getty, White, U.S . Department of Education, Department of Education, National Consumer Law Center, National Consumer Law, of Education

☆ Over 800,000 student-loan borrowers are getting their debt wiped out in the coming months. Here's what other borrowers should know if they also want that relief.
▼ + stars: | 2023-07-17 | by ( Ayelet Sheffey | ) www.businessinsider.com time to read: +4 min

The Education Department announced $39 billion in debt relief for over 800,000 borrowers. On Friday, President Joe Biden's Education Department announced that over 800,000 student-loan borrowers will receive $39 billion in debt relief in the coming months thanks to a one-time adjustment to accounts enrolled in an income-driven repayment plan. Here's what borrowers should know if they want to benefit from the relief. How to make sure your loans qualifyThe account adjustment only applies to direct federal loans and FFEL loans held by the Education Department. How to get a refund if a borrower overpaysOnce a borrower reaches the repayment threshold, they automatically qualify for forgiveness.

Persons: Joe Biden's, Education Department —, you'll Organizations: Education Department, Service, Joe Biden's Education Department, Family Education, Federal Student Aid Locations: Wall, Silicon, PAYE

Unlike the U.S., where home buyers can snag a 30-year mortgage, Canadian borrowers must renew their mortgages every five years at the prevailing interest rates. MORTGAGE DELINQUENCIES LOWLatest data released during the quarterly earnings showed mortgage delinquencies for all banks were low. Of the big six banks in Canada, Bank of Nova Scotia (BNS.TO) and National Bank of Canada (NA.TO) do not offer mortgage extensions, meaning the payment owed by the consumer goes up for each hike the BoC announces. Bank of Montreal (BMO.TO), CIBC (CM.TO) and TD Bank (TD.TO) each allow for negative amortization as rates rise. So it is working counter to what the Bank of Canada is trying to accomplish," Briggs added.

Persons: Greg Taylor, Desjardins, Mike Rizvanovic, Rizvanovic, Darcy Briggs, Briggs, Nivedita Balu, Josie Kao, David Gregorio Our Organizations: TORONTO, Bank, Purpose Investments, Bank of Nova, National Bank of Canada, BoC, RBC, Scotiabank, National Bank, Bank of Montreal, CIBC, TD Bank, Desjardins . Royal Bank of Canada, BMO, Franklin Templeton, Bank of Canada, Thomson Locations: U.S, Canada, Bank of Nova Scotia, Franklin Templeton Canada, Toronto

☆ Student-loan holders will soon have $300 less to spend each month. That could be bad news for Target and Dick's.
▼ + stars: | 2023-07-10 | by ( Dominick Reuter | ) www.businessinsider.com time to read: +3 min

Student loan payments are set to resume in October following a Supreme Court ruling last month. Analysts at Morgan Stanley project this will have a broad — but uneven — impact on major retailers. Retailers are already bracing for the shift, which analysts at Morgan Stanley project will affect nearly every company — some more than others. "Retailers with high exposure to student loan holders that sell into a discretionary category are likely most at risk, while retailers with low exposure to student loan holders are likely most insulated," the analysts note. In addition to Target, the analysis calls out Dick's Sporting Goods, Wayfair, and Williams-Sonoma as particularly vulnerable to this pullback in discretionary spending.

Persons: Morgan Stanley, Joe Biden's, O'Reilly, Jeffries Organizations: Service, Target, Walmart, Sporting Goods, Dollar, Tractor Supply Co Locations: forbearance, Wall, Silicon, Williams, Sonoma, Amazon

☆ Meet a student-loan borrower with $101,000 in debt who doesn't have 'any hope' with Biden's new plan for loan forgiveness: 'I'm never going to be able to pay it down'
▼ + stars: | 2023-07-09 | by ( Ayelet Sheffey | ) www.businessinsider.com time to read: +6 min

Jarrett, 38, has $101,000 in student debt and was hopeful for Joe Biden's loan forgiveness. He told Insider he didn't think Biden's new plan for relief would deliver for borrowers. For years after graduating, he struggled to find steady employment and placed his initial student-loan balance of about $60,000 on forbearance. "I'm never going to be able to pay it down," Jarrett told Insider. And I certainly don't think that what he's doing now is going to address the issue either."

Persons: Jarrett, Joe Biden's, Jarrett —, —, doesn't, I'm, I've, Biden, Jarrett isn't, Alexandria Ocasio, Ro Khanna, he's Organizations: Service, Education Department, Higher, Democratic, CNN, Biden Locations: Wall, Silicon, Alexandria, Cortez

The lending unit of crypto firm Genesis filed for bankruptcy in January after the collapse of key counterparties including FTX caused it to freeze customer redemptions in November. Its largest creditor is Gemini, founded by billionaire identical twins Cameron and Tyler Winklevoss who are also former U.S. Olympic rowers. A bankruptcy court appointed a mediator in April to help Genesis, DCG and its creditors agree on a restructuring plan, but the parties have yet to reach a deal despite several extensions. Under the offer, DCG would retain the proceeds from the sale of Genesis' lending unit. If Silbert and DCG do not agree, Gemini will sue Silbert and DCG, and file a motion to place DCG in default and demand immediate debt repayments, Winklevoss said.

Persons: Cameron, Tyler Winklevoss, Gemini, Barry Silbert, Cameron Winklevoss, Winklevoss, DCG, Mark Zuckerberg, Silbert, ” Winklevoss, Hannah Lang, Dietrich Knauth, Michelle Price, Matthew Lewis Organizations: Digital Currency Group, Gemini, U.S, Olympic, Reuters, Genesis, Meta, Facebook, Thomson Locations: Connecticut, Washington

☆ Everything student-loan borrowers need to know about what will happen when payments restart this fall without broad debt relief
▼ + stars: | 2023-07-03 | by ( Ayelet Sheffey | ) www.businessinsider.com time to read: +6 min

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

☆ These risk factors suggest borrowers could struggle when student loan payments resume, report finds
▼ + stars: | 2023-07-03 | by ( Ana Teresa Solá | ) www.cnbc.com time to read: +4 min

People line up outside of the Supreme Court in Washington, D.C., on June 30, 2023. Kent Nishimura | Los Angeles Times | Getty ImagesMany student loan borrowers face risk factors that suggest they could struggle covering their bills, especially after the Supreme Court struck down President Biden's federal student loan forgiveness proposal and repayment will resume in October. "I wasn't necessarily surprised," said Stedman, who graduated from college in 2013 with just under $40,000 in student loan debt. For his part, Stedman said he's found his student loan debt to be a "challenge" since graduation. 3 things to consider as loan payments resume

Persons: Kent Nishimura, Colton Stedman, Biden, Stedman, —, Jack Wallace, Yrefy, he's, It's, Wallace Organizations: Washington , D.C, Los Angeles Times, Getty, Consumer Financial, Bureau, South Saint, Finance, Governors, Federal Reserve System, College Board Locations: Washington ,, South, South Saint Paul , Minnesota, U.S, Yrefy

The Education Department last week said loan payments would resume in October. Reuters GraphicsA White House source said Biden plans to announce new actions on Friday to protect student loan borrowers in the wake of the ruling. Another challenge to at least some of those who face student loan repayment: Managing new debt taken on when student loan payments were off the table. The New York Fed found the debt payment holiday boosted credit scores of student loan borrowers, opening the door to take on other debt. Delinquency rates on student loans plummeted from roughly 10% before the payment holiday to below 1% at the end of the first quarter of this year.

Persons: Joe Biden's, Biden, Thomas Simons, Simons, Morgan Stanley, forbearance, Michael S, Dan Burns, Andrea Ricci Organizations: U.S, Biden, White, Republicans, Department, New York Fed, Reuters, Federal Reserve, Jefferies, York Fed, New, University of Chicago, Derby, Thomson Locations: U.S, New York

☆ The Student Loan Borrowers Who Will Continue to Struggle
▼ + stars: | 2023-06-30 | by ( Ron Lieber | Tara Siegel Bernard | ) www.nytimes.com time to read: +1 min

Now, imagine that you have three children, are separated from your spouse and are earning just $11.50 an hour after spending years raising them. That was the predicament that Joanna Leiserson found herself in when she was living in Spokane, Wash., in 2000 and her oldest child was about to start college. PLUS loans were the only way to afford the schools that best fit her children’s needs. And then there is the matter of any higher power that might have an opinion on the matter. “Which is a community in which all persons can live sustainable lives of dignity and respect.”

Persons: Joanna Leiserson, she’s, ”, “ I’m, Ms, Leiserson Organizations: Public, Republicans Locations: Spokane, —, forbearance

Our experts answer readers' student loan questions and write unbiased product reviews (here's how we assess student loans). See Insider's picks for the best student loan refinance lenders>>Student loan refinancing is paying off your old loans with a new one. It's important to understand the long-term costs and ramifications of refinancing student loans, particularly federal student loans. Note which loans are federal and which are privateWhile going through your loan list, also note if they are federal student loans or private student loans. Check out refinance optionsPrivate lenders and loan companies offer loans to pay for your education as well as refinance student loans that can repackage existing student debt.

Persons: —, you'd Organizations: Service, Biden Locations: Federal

☆ Resetting student loans brings Econ 101 lessons
▼ + stars: | 2023-06-30 | by ( Ben Winck | ) www.reuters.com time to read: +3 min

A U.S. Supreme Court ruling against President Joe Biden’s student loan forbearance erases as much as $20,000 in potential relief for graduates. Combined with the resumption of debt payments, borrowers will be feeling the pinch in their wallets and their confidence. The court said on Friday that a plan to wipe out swathes of student loans was unconstitutional, ending hopes of an easier financial future for some 43 million borrowers. If the Supreme Court had supported the relief, it also risked stoking inflation just as it slides to a healthier level. The proposal aimed to relieve $10,000 of student loans for individuals earning less than $125,000 annually, and an additional $10,000 for eligible borrowers who received Pell Grant subsidies.

Persons: Joe Biden’s, Mark Zandi, Taco, Pell Grant, Donald Trump, Jeffrey Goldfarb, Streisand Neto Organizations: Reuters, U.S, Supreme, White, Census Bureau, U.S . Federal Reserve, Bureau of Labor Statistics, Taco Bell, Yum Brands, Biden, Democratic, Congressional, Office, Former U.S, Thomson

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