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☆ Student-loan borrowers who weren't in the last round of debt cancellation can still count on relief if they 'did their end of the bargain,' Biden's Education Secretary says
▼ + stars: | 2023-10-04 | by ( Ayelet Sheffey | ) www.businessinsider.com time to read: +4 min

The Education Department announced $9 billion in debt relief for 125,000 student-loan borrowers this week. The department will continue evaluating which borrowers have completed the required payments. AdvertisementAdvertisementThe top education official doesn't want student-loan borrowers who believe they've made the required payments to lose hope if they have not yet gotten debt relief. According to Federal Student Aid, the Education Department will continue evaluating borrowers' accounts every two months to determine who has met the threshold for relief. Cardona said he recognizes "how difficult it is for so many borrowers" especially after the Supreme Court struck down President Joe Biden's first plan for debt relief.

Persons: Miguel Cardona, —, they've, PSLF, " Cardona, Cardona, Joe Biden's Organizations: Education Department, Service, Public, Education, Federal Student Aid, Federal

☆ Student-loan borrowers are facing 'excessively long' wait times for help from their servicers, Biden's Education Secretary says — and it'll take more money from Congress to fix it
▼ + stars: | 2023-10-04 | by ( Ayelet Sheffey | ) www.businessinsider.com time to read: +4 min

Student-loan borrowers started to face monthly bills again this week. Miguel Cardona told Insider he's aware of the challenges with repayment. October 1 marked the official end of pandemic relief for federal student-loan borrowers. Education Secretary Miguel Cardona told Insider in an interview that he's aware of the challenges this transition is bringing to both borrowers and servicers. AdvertisementAdvertisementStill, some student-loan servicers continue to point to lack of resources when faced with customer service complaints.

Persons: Miguel Cardona, —, we're, Cardona, Joe Biden's, Education James Kvaal, he's, Kvaal, Massachusetts Sen, Elizabeth Warren, Warren, servicers, MOHELA Organizations: Service, Bills, Education Department, Education, Federal Student Aid, Republicans Locations: Massachusetts

☆ A top education official breaks down what's next for student-loan borrowers, and how the industry's 'deep-rooted structural problems' can be fixed
▼ + stars: | 2023-10-03 | by ( Ayelet Sheffey | ) www.businessinsider.com time to read: +6 min

James Kvaal knew the student-loan industry had problems when he started as Under Secretary of Education. Lack of funding for Federal Student Aid is also concerning for repayment, Kvaal said. AdvertisementAdvertisementA top official in the US Department of Education knew the student-loan industry was broken when he started the job. At that point, Americans were in the midst of the pandemic, and as a result, student-loan borrowers had not been required to pay their bills since March 2020. Kvaal pointed to limited resources the Education Department has to give to federal student-loan servicers, which he said has contributed to mismanagement over the years.

Persons: James Kvaal, Kvaal, —, Education James Kvaal, Joe Biden's, servicers, we've, Massachusetts Sen, Elizabeth Warren, Warren, It's, What's, rulemaking Organizations: Education, Federal Student, Service, US Department of Education, Public, Education Department, Massachusetts, Democratic, Aid, —, Republicans, Higher, Federal

☆ Student-loan borrowers struggling with repayment should not be required to pay their debt until their account issues are resolved, 19 state attorneys general say
▼ + stars: | 2023-10-02 | by ( Ayelet Sheffey | ) www.businessinsider.com time to read: +4 min

Pandemic relief for student-loan borrowers is officially over. State attorneys general said those borrowers shouldn't have to make payments until the issues are fixed. AdvertisementAdvertisementA group of state attorneys general don't think student-loan borrowers should have to pay off their loans while struggling to get issues with their balances resolved. Interest also started building on balances in September due to the debt ceiling bill Biden signed into law in June that codified the end of the student-loan payment pause. Over the past few months, borrowers have increasingly been struggling with their servicers as they began to prepare for repayment.

Persons: —, Joe Biden, Miguel Cardona, servicers, Biden, Education James Kvaal, MOHELA Organizations: Service, Education, Student Aid, Democratic, The Education Department

☆ Should you apply early to college? It could affect your odds of acceptance but also your financial aid
▼ + stars: | 2023-10-02 | by ( Jessica Dickler | ) www.cnbc.com time to read: +5 min

Early decision, on the other hand, can "help leverage someone's admissions chances." Despite the possibility of improving your odds of acceptance, there are other factors to consider, especially when it comes to financial aid. For colleges, early decision is a win-winFor schools, offering students an option to apply early has clear advantages. In addition, getting a head start on the makeup of the freshman class helps admissions officers balance out enrollment needs with financial aid requests. (Some schools also offer another option, called Early Decision II, which is due in January.)

Persons: Eric Greenberg, Rick Castellano, Sallie Mae, — that's, Vasconcelos, Robert Franek, Greenberg, Franek, Jeff Greenberg, Louis Organizations: Greenberg Educational Group, Federal Student Aid, The Princeton, Greenberg Educational, Getty, Princeton, Emory University, Colgate University, Swarthmore College, Tulane University, Middlebury College, Washington University Locations: New York, St, Vermont

☆ Why paying off your student loans won't get easier anytime soon
▼ + stars: | 2023-10-02 | by ( Ayelet Sheffey | ) www.businessinsider.com time to read: +14 min

Student-loan borrowers are entering uncharted territoryThe Education Department has never had to reenter 28 million people into payments at the same time. Plus, federal servicers' technology may not be up to the task. In contrast, federal student-loan servicing has been contracted out to five companies, and the government doesn't have the resources to fully keep tabs on the industry. "So there really were deep-rooted structural problems in the loan programs on the policy design but also on the execution side," Kvaal said. As the years went on, the GAO continued to identify flaws in student-loan programs that were hurting borrowers.

Persons: Greg Ogden, Ogden, I've, servicer, he's, he'd, We're, Sen, Elizabeth Warren, James Kvaal, —, Kvaal, Barack Obama's, Obamacare, servicers, Scott Buchanan, servicers —, servicer MOHELA, MOHELA, Biden, Virginia Foxx, she's, Cardona, it's, Foxx, Carolyn Fast, Joe Biden's, Buchanan, Warren, Pamela Herd, Herd, Melissa Emrey, that's, Miguel Cardona, we're Organizations: Public, Education Department, Department, Student Loan, —, GOP, The Century Foundation, Federal Student Aid, Georgetown University, Medicare, Student Aid, Office, Biden, Social, Education, Consumer Financial, Emrey, Federal, Aid Locations: servicers, Arras

NEW YORK (AP) — Federal student loan borrowers will need to start making payments again this month after a three-year-plus pause due to the pandemic. It's likely that most borrowers have received their bill already but if you have not, visit your loan servicer account. Czulada also recommended that you look at which type of student loan you have, so you know which income-driven repayment plans you might qualify for. Borrowers can find out what their monthly student loan payment will be on their account with their loan servicer. Betsy Mayotte, president of The Institute of Student Loan Advisors, recommends that you research if you qualify for an income-driven repayment plan.

Persons: haven't, servicers, Amy Czulada, Czulada, Joe Biden, Betsy Mayotte, Biden, you’ve, they’re, you’re, you’ll, ”, Charles Schwab Organizations: — Federal, Student, Protection, The, Student Loan Advisors, Public, Federal, Aid, Department, Education, Department of Education, Associated Press, Charles, Charles Schwab Foundation, Inc, AP

☆ All the ways student-loan borrowers can get help on their monthly payments — and new relief to look out for next year
▼ + stars: | 2023-10-01 | by ( Ayelet Sheffey | ) www.businessinsider.com time to read: +7 min

AdvertisementAdvertisementPandemic relief for student-loan borrowers is officially over. While pandemic relief is over, the Education Department has put forth a series of plans to help borrowers afford their monthly payments — including temporary safeguards should they miss a payment. On-ramp periodIf a borrower finds they cannot afford their monthly payments, they can make use of the 12-month "on-ramp" period beginning in October. AdvertisementAdvertisementOther forms of relief to comeAside from repayment, the Education Department is working through other regulations, including targeted relief, for student-loan borrowers. It could also run into legal challenges, and not everyone who qualified for Biden's first debt relief plan is guaranteed to qualify now.

Persons: —, Donald Trump, Joe Biden, Biden Organizations: Service, Education Department, Federal, Higher Locations: COVID

☆ Federal student loan payments are due for the first time since 2020—what you need to know
▼ + stars: | 2023-10-01 | by ( Kamaron Mcnair | In Kamaronmcnair | ) www.cnbc.com time to read: +1 min

October has arrived and with it, the resumption of federal student loan payments. Your exact due date depends on your loan servicer. Your payment may be due later if you graduated recently, but you'll still want to check with your loan servicer. Log in to the Federal Student Aid website to find your servicer if you're not sure who it is. An ideal time for borrowers to resume paying back their student debt may not exist, but federal borrowers do have resources at their disposal to make returning to repayment as seamless as possible.

Persons: Donald Trump, you'll, servicers, Biden Organizations: Federal, Aid

☆ The FAFSA won't open on Oct. 1 this year—here's when you'll be able to apply for student financial aid
▼ + stars: | 2023-09-30 | by ( Kamaron Mcnair | In Kamaronmcnair | ) www.cnbc.com time to read: +1 min

The Free Application for Federal Student Aid, better known as FAFSA, typically opens on Oct. 1, but this year families will have to wait until December. The form — which uses parents' income and a litany of other information to determine a student's need for financial aid — is being updated, and hopefully, simplified. However, implementing those changes means students and families will not be able to apply for aid for the 2024-25 school year until December 2023. "[The Department of Education] is concerned that once October comes around, people will start looking for the FAFSA," McCarthy says. But the change in schedule could have some families concerned about what it means for their student's financial aid package.

Persons: —, Karen McCarthy, McCarthy Organizations: Federal Student Aid, Department of Education, National Association of Student Financial, CNBC

☆ A government shutdown won't stop the student-loan payment restart — but an extended one could jeopardize resources for borrowers who need help
▼ + stars: | 2023-09-29 | by ( Ayelet Sheffey | ) www.businessinsider.com time to read: +4 min

A shutdown would occur the same day student-loan payments resume. The Education Department said resources for borrowers will be available the first few weeks of a shutdown. AdvertisementAdvertisementPresident Joe Biden's Education Department is clear: government shutdown or not, student-loan payment are resuming on October 1. A shutdown could also happen at a critical time for millions of student-loan borrowers. However, amid calls from some Democratic lawmakers and advocates to pause payments in the event of a shutdown, the Education Department confirmed payments are still set to resume.

Persons: doesn't, —, Joe Biden's, Biden, servicers, Ayanna Pressley Organizations: Education Department, Service, Joe Biden's Education, Conservative, Democratic, Republicans, Federal, Aid, Management, Education

NEW YORK (AP) — Karin Engstrom thought she’d be paying off her federal student loans for the rest of her life. It also credits borrowers for periods before the pandemic when they were allowed to pause or reduce payments due to financial hardships. “Info: Your student loans have been forgiven,” the letter read. Borrowers who have made 20 or 25 years of qualifying payments (depending on the repayment plan) qualify, if they hold direct loans or Federal Family Education Loans with the Education Department, including borrowers with Parent PLUS loans. The official Federal Student Aid guide to the Income Driven Repayment adjustment is a good resource for updates.

Persons: — Karin Engstrom, she’d, Biden, It's, servicers, Engstrom didn't, Harris, ” Engstrom, ” Patricia Vener, Saavedra, “, ”, who's, “ He's, Vener, Charles Schwab Organizations: Department of Education, Federal, Aid, Harris Administration, Edfinancial Services, WHO, Family, Education Department, Parent, WHAT, IF, of Education, Associated Press, Charles, Charles Schwab Foundation, Inc, AP Locations: Hamden , Connecticut

☆ Capitol Hill staffers could lose up to $833 in student-loan repayment benefits while their congressional bosses still get paid if the government shuts down
▼ + stars: | 2023-09-28 | by ( Ayelet Sheffey | ) www.businessinsider.com time to read: +4 min

Hill staffers will not receive student-loan repayment assistance during a shutdown. AdvertisementAdvertisementA federal government shutdown is imminent — and it could mean thousands of federal workers lose student-loan repayment assistance. That includes the Student Loan Repayment Program for Hill staffers, which gives each employee up to $833 in repayment benefits each month. AdvertisementAdvertisement"When the lapse in funding is resolved, Student Loan payments will resume and be disbursed for any applicable periods staff had active Student Loan agreements," it added. "Employees may want to contact their Student Loan Servicer to discuss options available if there is a financial hardship in making required payments due."

Persons: Hill, —, Kevin McCarthy, McCarthy, Joe Biden, Biden Organizations: Service, Administration, Capitol Hill, Hill, House, Employees, Education Department, Student Aid

☆ Elizabeth Warren says student-loan companies can't use lack of funding as an excuse for bad customer service — and she's 'deeply worried' they're not ready for repayment starting next week
▼ + stars: | 2023-09-28 | by ( Ayelet Sheffey | ) www.businessinsider.com time to read: +6 min

Sen. Elizabeth Warren led some Democratic colleagues in sending letters to four student-loan companies requesting information on the repayment restart. They also said a lack of funding is not a valid excuse for borrowers to be facing bad customer service. AdvertisementAdvertisementSenator Elizabeth Warren is worried that four federal student-loan companies aren't up to the task of transitioning millions of borrowers back into repayment in a few days. These letters come just days before pandemic relief for federal borrowers comes to an end. White House Press Secretary Karine Jean-Pierre said during a Monday press briefing that it would further strain Federal Student Aid's ability to assist borrowers over the next month.

Persons: Sen, Elizabeth Warren, —, Warren, — Sens, Chris Van Hollen, Ed Markey, Richard Blumenthal —, servicers, Joe Biden's, Virginia Foxx, Bill Cassidy, Karine Jean, Pierre, Jean, Pierre said Organizations: Democratic, Service, Federal Services, servicer, Central Research Inc, Education Department, — House Republicans, Federal Student Aid, Consumer Financial, Republican, Office, Department, House Press, Education

☆ A major student-loan company says 'extensive servicing delays are a likely outcome' as borrowers transition back into repayment — and it could 'last well into 2024'
▼ + stars: | 2023-09-28 | by ( Ayelet Sheffey | ) www.businessinsider.com time to read: +5 min

One company, MOHELA, said it anticipates "extensive servicing delays" due to a lack of resources. MOHELA also said it received 36,309 complaints from borrowers over the past year. AdvertisementAdvertisementA major student-loan company that services over 7 million borrowers isn't too confident about its preparedness to enter repayment in a few days. That's compared to the 3,469 complaints Maximus, another servicer, received, and 3,063 from servicer EdFinancial. It's clear some servicers are concerned about their abilities to manage this transition back into repayment — and borrowers will likely suffer the consequences.

Persons: MOHELA, —, Sen, Elizabeth Warren, Nelnet, Warren, Joe Biden's Organizations: Service, Democratic, Public

☆ Student-loan borrowers have a new safeguard in place to ensure their debt doesn't pile up once they graduate
▼ + stars: | 2023-09-27 | by ( Ayelet Sheffey | ) www.businessinsider.com time to read: +5 min

The Education Department released its final version of the gainful employment rule. AdvertisementAdvertisementPresident Joe Biden's Education Department has released its final rule to keep student debt from spiraling after a borrower graduates. On Wednesday, the Education Department announced its final version of the gainful employment rule. However, advocates and Democratic lawmakers have previously pushed for a strengthened gainful employment rule to protect borrowers. This includes the most effective gainful employment rule in history," Cardona said.

Persons: —, Joe Biden's, Barack Obama, Donald Trump, Education James Kvaal, Jason Altmire, Altmire, Aaron Ament, Miguel Cardona, " Cardona Organizations: Education Department, Service, Joe Biden's Education Department, Education, Education Colleges, Universities —, Department, Democratic, Student Defense

The Office of Management and Budget reminded senior agency officials Friday to update and review shutdown plans. Those plans can vary from shutdown to shutdown. The nearly 4 million Americans who are federal employees will feel the effect immediately. Essential workers will remain on the job, but others will be furloughed until the shutdown is over. For many of them, a shutdown would strain their finances, as it did during the record 35-day funding lapse in 2018-2019.

Persons: “, ”, Doreen Greenwald, Everett Kelley, Pell, disbursing Pell, It’s, treasurers Organizations: CNN, Management, National Treasury Employees Union, American Federation of Government Employees, Transportation Security Administration, Social Security, TSA, of Labor Statistics, Federal Reserve, Business Administration, Futures, US Centers for Disease Control, Drug Administration, Safety, Health Administration, Environmental Protection Agency, ”, Smithsonian, National, National Archives, National Park Service, of Education, Federal Student Aid, Federal, Department of, Assistance, SNAP, US Department of Agriculture, Women, of Housing, Urban Development, Commission, Research, NOAA, Oceanic, Administration, National Science Foundation, Peace Corps, State Department, Defense Department Locations: United States, America, Washington, DC, shutdowns

☆ 1,200 student-loan borrowers are getting $37 million in debt wiped out after being 'brazenly deceived' by the University of Phoenix, Biden's Education Department says
▼ + stars: | 2023-09-20 | by ( Ayelet Sheffey | ) www.businessinsider.com time to read: +4 min

1,200 student-loan borrowers who attended University of Phoenix are getting $37 million in debt relief. On Wednesday, President Joe Biden's Education Department and Federal Trade Commission announced that 1,200 borrowers who attended University of Phoenix will be getting $37 million in debt relief. Phoenix students who were enrolled between September 21, 2012, and December 31, 2014, and submitted claims, are included in this batch. The Education Department said it will begin notifying borrowers in early October that their borrower defense claims have been approved. Over the past months, the Education Department has taken a series of actions to assist defrauded borrowers.

Persons: Joe Biden's, University of Phoenix brazenly, Richard Cordray, Ashford Organizations: University of Phoenix, Education Department, Service, Joe Biden's Education Department, Federal Trade Commission, Phoenix, Aid, FTC, University, Ashford University, San Locations: Phoenix, Wall, Silicon, San Diego

☆ Biden administration forgives $37 million in student debt for defrauded borrowers
▼ + stars: | 2023-09-20 | by ( Annie Nova | ) www.cnbc.com time to read: +2 min

The Biden administration announced Wednesday it would cancel nearly $37 million in student debt for more than 1,200 students who attended the University of Phoenix. The borrower defense program allows borrowers who can prove they've been misled or defrauded by their schools to get their federal student loans voided. "The University of Phoenix brazenly deceived prospective students with false ads to get them to enroll," said Richard Cordray, the federal student aid chief operating officer. The FTC had obtained internal emails, as well as advertisement materials and recorded phone calls with prospective Phoenix students. "Phoenix management was aware that the corporate relationships the school claimed to have did not exist," the Education Department said.

Persons: Biden, they've, University of Phoenix brazenly, Richard Cordray, Goldman Sachs, ‘ Organizations: University of Phoenix Chicago, University of Phoenix, U.S . Department of Education, University, Phoenix's, Fortune, Education Department, Finance, Federal Reserve, Federal Trade Commission, FTC, Phoenix Locations: Schaumburg , Illinois

☆ Student-loan payments are resuming the same day the government could shut down. Here's what that means for borrowers.
▼ + stars: | 2023-09-18 | by ( Ayelet Sheffey | ) www.businessinsider.com time to read: +5 min

A shutdown would coincide with the first day federal student-loan payments are set to resume. If not, Americans will face a government shutdown on October 1, which also happens to be the same day federal student-loan payments resume. All that could be much worse if the Education Department shuts down at the same time payments are supposed to start up. AdvertisementAdvertisementAfter over three years on pause, federal borrowers will start footing an extra monthly bill as early as October 1. AdvertisementAdvertisementThe Education Department has said it remains in frequent contact with servicers to ensure a smooth transition back into repayment.

Persons: —, servicers Organizations: Education Department, Service, Sunday, Republicans, Management, Federal Student, Education, Department Locations: Wall, Silicon

☆ Why a single mom is stuck paying her ex husband's student debt — and needs his permission to make any changes to her payments
▼ + stars: | 2023-09-17 | by ( Ayelet Sheffey | ) www.businessinsider.com time to read: +9 min

Biden signed into law a bill allowing student-loan borrowers who combined balances with a spouse to separate their loans. They wouldn't owe payments, and if approved for administrative forbearance, their interest rates would be set to zero. Brigid, a 55-year-old borrower with spousal loans, told Insider she's experienced a similar dilemma. However, because of the strict nature of spousal loans, she would also have to meet the hardship requirements by, for example, also having cancer in order to receive the deferment. But she's been unable to receive administrative forbearance, and she's frustrated borrowers with spousal loans are blocked from opportunities federal borrowers are receiving.

Persons: Biden, Theresa, she's, Theresa —, —, Sen, Mark Warner, David Price, Joe Biden, Price, it's, That's, hasn't, servicer, Brigid, servicers, It's, they'll, Elizabeth Organizations: Service, Education Department, Federal Student Aid, Group, Family Education, forbearance Locations: Wall, Silicon, forbearance

☆ Some student-loan borrowers are getting kicked out of classes and racking up debt after being placed in shady payment plans with minimal legal protection, a federal consumer watchdog says
▼ + stars: | 2023-09-16 | by ( Ayelet Sheffey | ) www.businessinsider.com time to read: +6 min

It found the plans can have predatory terms that include big late fees and aggressive debt collection practices. AdvertisementAdvertisementThe report analyzed 450 institutions' payment plans — 60% of which outsourced management of the payment plans to third-party financial service providers, and it found that the interest-fee plans aren't as affordable as they sound. Additionally, the inconsistency among payment plans can leave students facing disparate consequences for missing a payment. CFPB example of late fees on tuition payment plans. The CFPB said it will continue to monitor schools' payment plans to ensure they are in accordance with consumer law.

Persons: Rohit Chopra, Joe Biden's Organizations: Service, Consumer Financial, Education Department Locations: Wall, Silicon

☆ Student loan borrowers at risk of scams as payments restart, says FTC
▼ + stars: | 2023-09-15 | by ( Greg Iacurci | ) www.cnbc.com time to read: +1 min

Student loan payments are restarting in October after a pause of more than three years — and scammers are trying to take advantage, the Federal Trade Commission warned. Fraudsters may try mislead borrowers by offering assistance and asking them to pay for it, Ari Lazarus, consumer education specialist at the FTC, wrote in a consumer alert Thursday. Those fake offers might include lowering borrowers' monthly payments, avoiding repayment or getting their loans forgiven. Interest on federal student debt was also suspended during this period but started accruing again on Sept. 1. The "best source" of information on federal student loans is the Federal Student Aid website, studentaid.gov, the FTC said.

Persons: Fraudsters, Ari Lazarus, Trump, Biden Organizations: Federal Trade Commission, Finance, Frisco, Federal, Aid, FTC

☆ The Great College Pricing Sham
▼ + stars: | 2023-09-10 | by ( James S. Murphy | ) www.businessinsider.com time to read: +21 min

I use quotation marks, because merit aid is granted to half the students at public colleges and 84% at private colleges. Today the average merit-aid discount at private colleges is $23,000 — leaving the student to cover the remaining $30,000 or $40,000. At four-year public colleges, tuition now accounts for 52% of operational revenue, versus 48% from state funding. To make college more accessible, we need to make greater public investments — at both the state and federal levels — in higher education. James S. Murphy is a higher education policy analyst at Education Reform Now.

Persons: Joe Biden, YouGov, Gen, Gen Zers, You'll, Pell Grant, Dominique Baker, —, Getty, Ben Sasse, who's, Sasse, David Feldman, William & Mary, Ford, Feldman, they're, Sandy Baum, It's, There's, Baum, They're, Josh Shapiro, Spencer Cox, shouldn't, James S, Murphy Organizations: Insider, Harvard, of California, Southern Methodist University, Ivy League, U.S . News, Honda, Porsche, University of Florida, McKinsey & Company, University of Oklahoma, University of Kentucky, Ford, Apple, Fordham, Appalachian, William &, Technology, West Virginia University, WVU, Urban Institute, Google, Reform, Twitter Locations: United States, Italian, Appalachian State, America, Pennsylvania, Utah

☆ Student-loan borrowers' federal balances are now growing every day from interest — but technical issues are delaying some of them from paying it off
▼ + stars: | 2023-09-06 | by ( Ayelet Sheffey | ) www.businessinsider.com time to read: +4 min

Interest on student loans started accruing daily again last week. That's because interest on federal student loans grows daily. According to Federal Student Aid: "Unlike other forms of debt, such as credit cards and mortgages, Direct Loans are 'daily interest' loans. On daily interest loans, interest accrues (adds up) every day." Nelnet did not immediately respond to Insider's request for comment on the website outage.

Persons: Nelnet, Biden Organizations: Service, Systems, Federal Student, Student Locations: Wall, Silicon

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