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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

☆ Supreme Court blocks Biden student loan forgiveness
▼ + stars: | 2023-06-30 | by ( John Kruzel | ) www.reuters.com time to read: +6 min

Biden plans to announce new actions to protect student loan borrowers in the wake of the ruling, a White House source said, speaking on condition of anonymity. Arkansas, Iowa, Kansas, Missouri, Nebraska and South Carolina challenged Biden's debt relief. The court's conservative justices had previously used the "major questions" doctrine to invalidate major Biden policies deemed lacking clear congressional authorization. Both Biden and his Republican predecessor Donald Trump relied upon the HEROES Act beginning in 2020 to repeatedly pause student loan payments and halt interest from accruing to alleviate financial strain on student loan borrowers during the COVID-19 pandemic. During the arguments, a Justice Department lawyer portrayed the debt relief as a benefits program rather than an assertion of regulatory power not authorized by Congress.

Persons: Joe Biden, Biden, John Roberts, Roberts, Education Miguel Cardona, Pell, Biden's, Elena Kagan, Kagan, Donald Trump, John Kruzel, Steve Holland, Will Dunham Organizations: U.S Supreme Court, Biden, Democratic, Education, Congress, Higher Education, Act, U.S . Centers for Disease Control, Liberal, Republican, Justice Department, Reuters, Thomson Locations: Arkansas , Iowa , Kansas , Missouri , Nebraska, South Carolina, U.S

☆ The Supreme Court strikes down Biden's student-loan forgiveness plan, blocking debt relief for millions of borrowers
▼ + stars: | 2023-06-30 | by ( Ayelet Sheffey | ) www.businessinsider.com time to read: +6 min

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

☆ Borrowers left reeling after Supreme Court decision: Student loans are like a 'pressure cooker that lasts your entire life'
▼ + stars: | 2023-06-30 | by ( Mike Winters | ) www.cnbc.com time to read: +2 min

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

☆ Chief Justice John Roberts said his opinion to strike down student-loan forgiveness doesn't mean the court opposes all relief. It just means Biden didn't have the authority to carry it out.
▼ + stars: | 2023-06-30 | by ( Juliana Kaplan | Ayelet Sheffey | ) www.businessinsider.com time to read: +4 min

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

☆ Biden isn't extending the student-loan payment pause — but borrowers might not have to immediately start repayment in October
▼ + stars: | 2023-06-29 | by ( Ayelet Sheffey | ) www.businessinsider.com time to read: +4 min

The Education Department finalized a three-month grace period after payments resume, per Politico. The Supreme Court will issue a decision on Biden's broad debt relief plan on Friday. In addition to the grace period, Politico also reported that the Education Department will unveil its new income-driven repayment plan in the coming weeks, with implementation soon after. The Education Department did not immediately respond to Insider's request for comment on its forthcoming plans. Amid the repayment debate, the most pressing issue for borrowers right now is whether the Supreme Court will uphold Biden's broad student-loan forgiveness.

Persons: It's, —, Joe Biden's, Biden, Biden's, Virginia Foxx, Foxx, Sen, Bill Cassidy, Secretary Miguel Cardona, Alexandria Ocasio, Cortez Organizations: Education Department, Politico, Service, Joe Biden's Education Department, Republican, Department, Secretary, Democratic Locations: Alexandria, United States

☆ Biden's Education Department is 'ill prepared' to resume student-loan payments for millions of borrowers in 3 months, 2 GOP lawmakers say — and they're demanding 'proof' of a repayment strategy
▼ + stars: | 2023-06-28 | by ( Ayelet Sheffey | ) www.businessinsider.com time to read: +4 min

Student-loan payments are set to resume in October. GOP Rep. Foxx and Sen. Cassidy asked the Education Department for its strategy on the resumption. They said they're concerned the department is "ill prepared" to transition borrowers back into repayment. Two Republican lawmakers want to know how the Education Department is preparing for that to happen. Since March 2020, federal student-loan payments — and interest — have been on pause to provide borrowers with financial relief during the pandemic.

Persons: Foxx, Sen, Cassidy, they're, —, Joe Biden's, Miguel Cardona, Biden, Virginia Foxx, Bill Cassidy, Cardona, Mr Organizations: GOP, Education Department, Service, Department, Politico, Federal Student

☆ Student-loan payments are resuming in 3 months — and borrowers might not be ready for the 'sizeable shock' to their wallets
▼ + stars: | 2023-06-26 | by ( Ayelet Sheffey | ) www.businessinsider.com time to read: +4 min

Student-loan payments are set to resume in October. Bank of America and Morgan Stanley highlighted the strain borrowers will face. 34% of surveyed borrowers don't think they can afford the payments at all, Morgan Stanley said. Morgan Stanley survey on student-loan payments. Morgan StanleyAnd a Monday note from Morgan Stanley researchers said that just 29% of federal student-loan borrowers are confident they'll be able to afford payments without adjusting spending in other areas.

Persons: Morgan Stanley, —, Joe Biden's, Donald Trump, Biden, Ethan Harris, Harris, Marshall Steinbaum, Miguel Cardona, Cardona, Ro Khanna Organizations: Bank of America, Service, Joe Biden's Education Department, " Bank of, Family Institute, University of Utah, Senate, Twitter Locations: California

☆ Justice Sam Alito took a luxury fishing trip with a billionaire who supports a group that wants to block Biden's student-loan forgiveness
▼ + stars: | 2023-06-21 | by ( Ayelet Sheffey | ) www.businessinsider.com time to read: +6 min

ProPublica reported that Justice Sam Alito took a luxury fishing trip with billionaire Paul Singer in 2008. Both Singer and Alito denied discussing any business interests related to SCOTUS cases on the trip. That group also filed an amicus brief with the Supreme Court asking it to block Biden's relief plan — a decision the court is expected to hand down in the coming days. The spokesperson also said that Singer did not have "any pending matters before the Supreme Court, nor could Mr. Singer have anticipated in 2008 that a subsequent matter would arise that would merit Supreme Court review." "On no occasion have we discussed the activities of his businesses, and we have never talked about any case or issue before the Court," Alito wrote.

Persons: ProPublica, Sam Alito, Paul Singer, Singer, Alito, SCOTUS, —, Jr, Joe Biden's, Biden, Brown, SBPC, Paul Singer's, Miguel Cardona Organizations: Manhattan Institute, GOP, Service, Republican, Congress, Street, Protection Center, . Nebraska, US Department of Education, Network, Judicial, Democratic, Biden Locations: —, Alaska, ., Brown, Brown and Nebraska

☆ 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

☆ A key driver behind ballooning student-loan balances is about to come back after a 3-year pause
▼ + stars: | 2023-06-19 | by ( Ayelet Sheffey | ) www.businessinsider.com time to read: +6 min

Student-loan payments, and interest, have been on pause for over three years. Interest has been a key driver of surging student-loan balances due to capitalization. "I feel like I've actually been responsible, and I've paid a considerable amount of money on my student loans," Wise said. "The only policy that has ever ended this debt cycle is the repayment pause, and the cycle is all but guaranteed to restart once the repayment pause comes to an end." "It would be political malpractice to have students repay student loans under Biden when Trump provided the relief," California Rep. Ro Khanna told The Washington Post.

Persons: —, David Wise, I've, Wise, Miguel Cardona, Joe Biden, Biden, " Cardona, Trump, Ro Khanna Organizations: Service, Education Department, Supreme, Jain, Institute, Federal Student Aid, Congress, Democratic, Biden, Washington Post Locations: California

☆ Biden says the gun safety movement has reached a ‘tipping point’ as he marks one year since passage of major legislation
▼ + stars: | 2023-06-16 | by ( Priscilla Alvarez Sam Fossum Donald Judd | Priscilla Alvarez | Sam Fossum | ) edition.cnn.com time to read: +9 min

The administration has also implemented two dozen executive actions to try to reduce gun violence. But in the absence of congressional action, the White House has turned its focus to state action to try to reduce gun violence. Ten years later, gun violence remains a challenging issue for the White House. But since the law was signed last year, further action on gun violence has stalled in Congress. But gun violence rates more broadly in our cities are going down this year for the first time in a long time,” Murphy told CNN.

Persons: Joe Biden, ” Biden, Biden, –, Barack Obama, “ You’ve, we’ve, he’s, Democratic Sen, Chris Murphy, “ I’m, Sen, Chuck, Schumer, ”, Murphy, Richard Blumenthal, Mark Barden, Sandy, “, Everytown, Giffords, it’s, ” Murphy, Miguel Cardona, Xavier Becerra Organizations: CNN, National Safer Communities, Safer, White, University of Hartford, Sandy Hook Elementary, Capitol, Democratic, Republicans, Democrats, Elementary, Federal Emergency Management, Department of Health, Human Services, Department, Education, of, Mental Health, HHS Locations: Connecticut, United States, Newton , Connecticut, Nashville, Buffalo , New York, Uvalde , Texas, Friday’s

☆ Student-loan borrowers are about to be thrown back into repayment, and the economy will suffer — especially if Biden's debt cancellation is struck down
▼ + stars: | 2023-06-04 | by ( Ayelet Sheffey | ) www.businessinsider.com time to read: +7 min

Education Secretary Miguel Cardona has confirmed student-loan payments will resume this year. In March 2020, former President Donald Trump first implemented the student-loan payment pause to give borrowers financial relief during the pandemic. 'We're looking at a pretty severe fiscal contraction'Steinbaum previously told Insider that the economy has been "more than fine" without borrowers' student-loan payments. But they're a weight, it's about 20 million student-loan borrowers that haven't been paying, they'll have to begin paying more or less in September," Zandi said. Democratic lawmakers have been sounding the alarm on the harmful impacts a payment resumption would have without Biden's broad debt relief.

Persons: Miguel Cardona, —, It's, Donald Trump, Trump, Joe Biden, — Biden, We're, Cardona, Biden, Kevin McCarthy, Marshall Steinbaum, Steinbaum, Mark Zandi, haven't, Zandi, that's, it's, Ayanna Pressley, Countess, Ro Khanna Organizations: Supreme, Service, Education, Family Institute, University of Utah, Education Department, Moody's, CNBC, Relief, Getty, Democratic, Massachusetts, Twitter Locations: Washington ,

☆ 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

☆ 'This bill does end the payment pause': What the debt ceiling deal means for student loan borrowers
▼ + stars: | 2023-06-01 | by ( Kamaron Mcnair | In Kamaronmcnair | ) www.cnbc.com time to read: +2 min

"This bill does end the payment pause," Shalanda Young, director of the Office of Management and Budget, said in a press briefing . It also comes with a condition that the student loan payment pause end after August 30. As Young stated, the debt ceiling bill will lift the payment pause at the end of August. She highlighted that some Republicans wanted to eliminate the possibility of student loan forgiveness as part of debt ceiling negotiations. "Even though [the] House Republicans' bill sought to do away with [debt forgiveness], we saved it in this bill," Young said.

Persons: Shalanda Young, Joe Biden, Kevin McCarthy, Young, Biden, Education Miguel Cardona, they're Organizations: Management, Education, Spectrum, House Republicans

☆ There's no chance the student-loan payment pause will be extended again this year if McCarthy and Biden's debt-ceiling deal is signed into law
▼ + stars: | 2023-05-30 | by ( Ayelet Sheffey | ) www.businessinsider.com time to read: +4 min

It codifies the end of the student-loan payment pause while protecting Biden's broad debt relief. The agreement included strengthened work requirements on federal programs like SNAP, and it also codified the end of the ongoing student-loan payment pause. "The deal also protects our ability to pause student loan payments should that be necessary in future emergencies." It would "end the student loan payment pause, which provides a vital economic stimulus to millions of students. Black women bear the highest comparative levels of student debt relief because they invest in education at a significant cost.

☆ A top progressive lawmaker is 'extremely concerned' about what the debt-ceiling deal means for student-loan borrowers, saying it constrains the time Biden has to get 'debt repayment plans up and runni
▼ + stars: | 2023-05-30 | by ( Ayelet Sheffey | ) www.businessinsider.com time to read: +4 min

Biden and McCarthy's debt-ceiling deal codifies the end of the student-loan payment pause. She said it could constrain the time Biden might need to implement new repayment plans. Congressional Progressive Caucus Chair Pramila Jayapal said during a Tuesday press call that she's "extremely concerned" with that provision. It also allows the administration to implement another payment pause in the future if another emergency warrants it, but bars Biden from doing so again this year. It also creates a major political problem for President Biden, who has tarnished his sterling legacy as a champion for working people with student debt."

Persons: Biden, Pramila Jayapal, —, isn't, Joe Biden, Kevin McCarthy's, McCarthy, — McCarthy, Jayapal, Mike Pierce, Miguel Cardona Organizations: Service, SNAP, Congressional, Protection, Twitter, Progressives

☆ Meet a teacher with $44,000 in student debt who is worried she'll be thrown back into repayment in a few months without the public service relief she was promised
▼ + stars: | 2023-05-21 | by ( Ayelet Sheffey | ) www.businessinsider.com time to read: +6 min

Cherie Vaughn, 57, has $44,000 in student debt after working in public service for decades. But she's worried her account will not be up to date before student-loan payments resume this year. That's even after serving nearly three decades in public service, making her eligible for full loan forgiveness. "I guess I'm just looking for the actual public service part of this loan forgiveness. Do you have a story to share about student debt?

☆ Biden's Education Department just released its 'strongest-ever' plan to ensure student-loan borrowers don't graduate with unaffordable debt
▼ + stars: | 2023-05-17 | by ( Ayelet Sheffey | ) www.businessinsider.com time to read: +6 min

The Education Department released its new proposal for a strengthened gainful employment rule. The rule would place safeguards for borrowers to ensure they don't take on more student debt than they can afford. "Ever since the Trump Administration illegally repealed the 2014 Gainful Employment rule, students have been left unprotected from predatory higher ed profiteers," Ament said. The gainful employment rule has drawn criticism from for-profit schools in the past who have argued that they were being targeted by the strengthened regulations. Democratic lawmakers have previously pushed for a strengthened gainful employment rule.

☆ A student-loan lender's lawsuit to end the payment pause is 'doomed' — and a federal court should throw it out, Biden's Education Department says in a new legal filing
▼ + stars: | 2023-05-16 | by ( Ayelet Sheffey | ) www.businessinsider.com time to read: +4 min

Student-loan lender SoFi filed a lawsuit to end the student-loan payment pause in March. The Education Department filed its response on Monday night, asking a court to dismiss the case. In March, SoFi — a student-loan refinancing company — sued the Education Department and asked the court to end the ongoing student-loan payment pause. "Indeed, information considered by the Department showed that even in November 2022, the economic harms of the pandemic lingered, and the nascent recovery was fragile for many student-loan borrowers." Additionally, the department wrote in its complaint that it did consider "various alternatives" to the payment pause extension it ended up enacting.

☆ Gen Z is way behind on credit-card payments. It could get even worse when student-debt payments restart.
▼ + stars: | 2023-05-16 | by ( Jacob Zinkula | Ayelet Sheffey | ) www.businessinsider.com time to read: +3 min

Gen Z is missing their credit-card payments at a rising rate. Their finances could get even worse when student-debt payments resume later this year. 36% of Gen Zers had student debt as of last June, with an average balance of $20,900. If young Americans are struggling to pay down their credit-card debt now, things could get even tougher when student-debt payments resume later this year after an over-three-year pause. "In fact, this is the only time since the New York Fed started tracking these figures in 2003 that credit-card balances did not fall from Q4 to Q1."

☆ Biden's plan to give millions of student-loan borrowers who fell behind on payments a fresh shot at debt relief is working
▼ + stars: | 2023-05-15 | by ( Ayelet Sheffey | ) www.businessinsider.com time to read: +4 min

Biden announced a "Fresh Start" plan to return borrowers behind on payments to good standing before reentering repayment. Data from the New York Fed found less than 1% of borrowers are in default due to the plan. The Education Secretary recently confirmed that payments will resume this year, with or without broad debt relief. This progress is important given that student-loan payments are expected to resume this year after what will be an over three year pause. The Education Department is also in the process of implementing a new income-driven repayment plan, which it says would be "the most affordable repayment plan ever."

☆ Biden's Education Secretary confirms the process of resuming student-loan payments will start 'no later than June 30': 'The emergency period is over'
▼ + stars: | 2023-05-11 | by ( Ayelet Sheffey | ) www.businessinsider.com time to read: +3 min

Education Secretary Miguel Cardona confirmed his commitment to resume student-loan payments this year. Payments are set to resume 60 days after June 30 or 60 days after a Supreme Court debt-relief decision. On Thursday, Education Secretary Miguel Cardona testified before the Senate Appropriations Committee about his budget request and plans for the upcoming fiscal year. In light of the conservative-backed lawsuits that paused the broad debt relief, Biden extended the student-loan-payment pause through 60 days after June 30 or 60 days after the Supreme Court issues its final decision. As Insider previously reported, the department has started communicating with student-loan companies to prepare borrowers to resume repayment.

☆ The Biden administration has forgiven $42 billion in student loan debt for borrowers in public service
▼ + stars: | 2023-05-08 | by ( Kamaron Mcnair | In Kamaronmcnair | ) www.cnbc.com time to read: +1 min

Since the Biden administration announced improvements to Public Service Loan Forgiveness (PSLF) and temporarily expanded forgiveness eligibility in October 2021, 615,000 public service workers have seen $42 billion in student debt erased, according to a Department of Education (ED) statement released Monday. PSLF allows federal student loan borrowers who go into public service — such as teachers, nurses, government employees and more — an opportunity to have their debt forgiven after completing 10 years of service. That's why the Biden administration has made it a priority to address issues with the process and make it easier for qualifying borrowers to see forgiveness. Borrowers are required to be on an income-driven repayment plan to make their 120 monthly payments to qualify for forgiveness. But under the temporary expansion, which ended in October 2022, eligible borrowers could receive forgiveness regardless of the type of payment plan they followed.

☆ Millions of student-loan borrowers would be forced into 'abrupt and unplanned repayment' if Republicans' plan to overturn Biden's debt cancellation gets passed, 261 advocacy groups tell Congress
▼ + stars: | 2023-05-08 | by ( Ayelet Sheffey | ) www.businessinsider.com time to read: +5 min

The House could likely take a first vote this week on a bill that would overturn student-debt relief. 261 advocacy groups urged congressional leaders on Monday to ensure that doesn't happen. They said the bill could force borrowers into an "abrupt" return to repayment and block targeted relief. "It will also force the Department of Education to unwind loans forgiven under Public Service Loan Forgiveness for first responders, nurses, educators, servicemembers, and hundreds of thousands of other public service workers across the country," they continued. Along with the CRA, McCarthy's bill to raise the debt ceiling — which passed the House two weeks ago — had spending cuts attached that included banning student-loan forgiveness.

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