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☆ A group of scammers cheated student-loan borrowers out of $12 million by misleading them about repayment programs and 'loan forgiveness that did not exist,' a federal watchdog says
▼ + stars: | 2023-05-09 | by ( Ayelet Sheffey | ) www.businessinsider.com time to read: +4 min

The FTC said two companies cheated student-loan borrowers out of $12 million. It accused the companies of lying about repayment programs and debt relief that did not exist. "As Americans struggle with massive student loan debt and uncertainty around the prospect of forgiveness, scammers are looking to cash in," Samuel Levine, Director of FTC's Bureau of Consumer Protection, said in a statement. "These lawsuits to shut down student loan debt relief schemes continue the agency's crackdown on junk fees, unwanted calls, and financial exploitation." Along with the FTC's latest action, the Consumer Financial Protection Bureau has also cracked down on fraudulent behavior targeting student-loan borrowers over the past months.

☆ 615,000 student-loan borrowers in public service have now gotten $42 billion in debt wiped out under temporary reforms — and getting relief going forward will soon be a lot easier, Biden's Education D
▼ + stars: | 2023-05-08 | by ( Ayelet Sheffey | ) www.businessinsider.com time to read: +4 min

The Education Department said 615,000 borrowers have gotten $42 billion in relief since October 2021. That's a result of temporary reforms to the Public Service Loan Forgiveness program. On Monday, the department announced that 615,000 borrowers in public service have received $42 billion in student-loan forgiveness since October 2021. That's why it implemented a limited-time waiver that allowed past payments to count toward borrowers' forgiveness progress, including those that were previously deemed ineligible for relief. Have you recently received debt relief through the public service loan forgiveness program?

☆ The federal student loan payment pause may end soon—how borrowers can get ready now
▼ + stars: | 2023-05-05 | by ( Kamaron Mcnair | In Kamaronmcnair | ) www.cnbc.com time to read: +6 min

While the summer signals music festivals and vacations for many, this year it will also mean the return of federal student loan payments. Interest hasn't been accruing and borrowers haven't been required to make payments on their federal student loans since March 2020. But as the federal government winds down its pandemic relief, student loan borrowers are bracing to resume payments, or start making them for the first time. If you graduated or left school between March 2020 and now, you may have never been required to make a payment on your federal student loans. If you're not sure, you can log into your Federal Student Aid (FSA) account and scroll down to the "My Loan Servicers" section, or call the Federal Student Aid Information Center (FSAIC) at 1-800-433-3243.

☆ Student-loan borrowers who combined their balances with a spouse just got new guidance on separating their loans. Here's what you need to know.
▼ + stars: | 2023-05-05 | by ( Ayelet Sheffey | ) www.businessinsider.com time to read: +5 min

Last year, a bill to allow student-loan borrowers to separate balances from a spouse was signed into law. In September, the Joint Consolidation Loan Separation Act of 2021 was signed into law, which allowed borrowers in the spousal joint consolidation loan program to separate their combined balances. On Friday, the Federal Student Aid website posted new guidance detailing the process for borrowers to go about separating their balances. A separate application: This application option would allow just one of the coborrowers to apply for separation of the balances, regardless of what the other coborrower decides. According to FSA, borrowers with direct joint consolidation loans will receive those adjustments when they become available, and separation of loans is not necessary to receive those benefits.

☆ 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."

☆ A student-loan company at the center of a lawsuit blocking Biden's debt cancellation with a 'dubious record of customer service' just got a new contract to keep servicing millions of borrowers, Cori B
▼ + stars: | 2023-05-03 | by ( Ayelet Sheffey | ) www.businessinsider.com time to read: +5 min

The Education Department awarded five student-loan companies new contracts, including MOHELA. "No company should be profiting from the student debt crisis, especially MOHELA with their dubious record of customer service in the past," she continued. "My office will continue our work to hold student loan servicers accountable for their harm to our communities. Ultimately, there is still much work to be done to provide student debt relief, bolster college affordability, and begin the transition to a world without student debt at all." As Bush referenced, MOHELA is responsible for the whole PSLF portfolio, which forgives student debt for government and nonprofit workers after ten years of qualifying payments.

☆ Millions of student-loan borrowers could find out in the next 2 months if they will get Biden's debt relief. Here's what's at stake — beyond a reduction to balances.
▼ + stars: | 2023-05-01 | by ( Ayelet Sheffey | ) www.businessinsider.com time to read: +8 min

The Supreme Court is expected to issue a decision on Biden's student-debt relief by the end of June. They could have debt relief right now if it weren't for these lawsuits." And it looks like the Education Department is planning for those payments to resume with or without relief. The implementation of targeted debt relief reformsThe Education Department has some other things in the works, aside from broad student-debt relief. Share your student debt story with this reporter at asheffey@insider.com.

☆ 4 strategies for avoiding taking on too much student debt in college
▼ + stars: | 2023-05-01 | by ( Annie Nova | ) www.cnbc.com time to read: +4 min

Steve Prezant | The Image Bank | Getty Imageswatch nowHere are four strategies high school seniors, and their families, can consider to avoid ending up deep in debt. "To reduce student loan debt, enroll at a less expensive college," Kantrowitz said, adding that public colleges often "provide just as good a quality of education." Families can continue saving in a 529 plan while their child is enrolled in college, Kantrowitz said. Meanwhile, more than $6 billion in scholarships are awarded to college students each year, according to Kantrowitz. According to calculations by Kantrowitz, around 1 in 8 college students has won a scholarship.

☆ Meet a 64-year-old therapist who's been making student-loan payments for decades while working in public service — but still hasn't gotten loan forgiveness
▼ + stars: | 2023-04-30 | by ( Ayelet Sheffey | ) www.businessinsider.com time to read: +7 min

Greg Ogden, 64, said he's been paying off his student loans since 1994 while working in public service. He said he applied for Public Service Loan Forgiveness but paperwork errors have kept him in repayment. Now, he said he owes about $25,000 in student debt, and he's frustrated it's still hanging over his head at this point in his life. "I want to fulfill my obligations, but I would like them to honor the payments that I've made," Ogden said. Do you have a story to share about your student debt?

☆ How to haggle with your college over financial aid
▼ + stars: | 2023-04-28 | by ( Dayun Park | ) edition.cnn.com time to read: +6 min

In some cases, filing an official financial aid appeal may even delay the deadline for putting down a deposit. Here, according to college financial aid and admissions officers, consultants and students, are the steps to take:Email, don’t call, and handle it yourself. “If there has been a significant reduction in income compared to your application, inform the school’s financial aid office; in some cases, financial aid can increase,” said Phil Asbury, Director of Financial Aid of Northwestern University in Illinois. The opportunity to increase need-based aid depends on the accuracy of your documented financial change and the financial ability of the school to make a change,” John Leach, Associate Vice Provost for Enrollment and University Financial Aid at Emory University, told CNN. Northwestern has a “priority deadline” so that the financial office can notify students early, but students can still apply for financial aid all year round.

Students with a limited credit history are unlikely to be approved for the best credit cards, and even some student credit cards require good to excellent credit. Step is a secured credit card that has a dynamic credit limit that is attached to the bank account balance -- it operates like a debit card but it is a credit card, which is what enables the unique credit building feature. Best Credit Cards for Students With No Credit of 2023Methodology: How we chose the best credit cards for students with no creditInsider's credit cards team looked at dozens of student credit cards, secured credit cards, and starter credit cards and narrowed down the list by choosing only those that students with limited or no credit have a good chance of qualifying for. Credit Cards for Students With No Credit Frequently Asked Questions (FAQ)Which credit card is best for students with no credit? US Bank Altitude Go Secured Credit Card ReviewBest for Students Under 18Step Secured Visa CardWhile credit card accounts are only available to those aged 18 and over, the Step Secured Visa Card offers a solution for students looking to build credit who haven't yet reached legal adulthood.

☆ A new bipartisan bill would make sure government and nonprofit workers can get student-loan forgiveness — even if they leave public service after 10 years
▼ + stars: | 2023-04-27 | by ( Ayelet Sheffey | ) www.businessinsider.com time to read: +5 min

The bill would eliminate the requirement to be employed in public service at the time of debt relief. It would ensure that borrowers that complete the required 120 qualifying payments will get loan forgiveness. The Public Service Loan Forgiveness (PSLF) program was created in 2007 to give government and nonprofit workers student-loan forgiveness after ten years, or 120 qualifying payments. "Since its creation, the Public Service Loan Forgiveness program has had persistent issues that have made it difficult for public service employees to access student debt relief in exchange for their dedicated service to our nation," Menendez said in a statement. "Our public servants, like police officers and teachers, rightfully have access to student loan forgiveness after ten years of public service," Houlahan said in a statement.

☆ Supreme Court decision on Biden's student loan forgiveness plan is key for those who never finish college
▼ + stars: | 2023-04-26 | by ( Jessica Dickler | ) www.cnbc.com time to read: +2 min

"Growing numbers of stop-outs and fewer returning students have contributed to the broader enrollment declines in recent years," said Doug Shapiro, executive director of the National Student Clearinghouse Research Center. "There's a variety of issues students face in college, many unexpected," said Rick Castellano, a spokesperson for Sallie Mae. Students with 'some college' more likely to defaultIf Biden's plan to cancel $400 billion in student loans is blocked, default rates may spike, the U.S. Department of Education has warned. But the borrowers most in jeopardy of defaulting are those who start college but never finish. The default rate among borrowers who leave with student debt but no degree is three times higher than the rate for borrowers who have a diploma.

☆ What Happens If You Don’t Pay Your Student Loans?
▼ + stars: | 2023-04-25 | by ( ) www.wsj.com time to read: +9 min

Read on to understand the details of not paying your student loans:What happens if you don’t pay your student loans? “The key is to communicate with their servicer or lender.”What happens when you don’t pay your student loans varies by loan type: Defaulting on federal student loans can follow you for life, whereas private student loan collections efforts have a statute of limitations. Here’s a closer look at what happens when you don’t pay your federal student loans, followed by what happens when you don’t pay your private loans. What happens if you don’t pay your federal student loans? “The Fresh Start program is likely the best pandemic-era student loan program to actually fix structural problems hurting student loan borrowers,” says Farrington.

☆ 37 million student-loan borrowers will get 'the most affordable repayment plan ever' when new contracts with 5 companies go into effect next year, Biden's Education Department says
▼ + stars: | 2023-04-25 | by ( Ayelet Sheffey | ) www.businessinsider.com time to read: +4 min

The Education Department awarded five student-loan companies new contracts to overhaul debt repayment. The department said the contracts will deliver "major improvements" for student-loan borrowers. "This additional funding is essential to support students and student loan borrowers," the press release said. But the Republican-controlled House is unlikely to approve more funding to facilitate student-loan programs. Speaker of the House Kevin McCarthy, for example, proposed cutting spending for the Education Department to prohibit it from implementing student-loan forgiveness and creating a new income-driven repayment plan in his debt ceiling bill.

☆ Biden's Education Department is planning for student-loan borrowers to resume payments in October — and companies will begin charging interest a month before
▼ + stars: | 2023-04-25 | by ( Ayelet Sheffey | ) www.businessinsider.com time to read: +5 min

The Education Department is asking student-loan companies to prepare for the student-loan payment resumption. Since March 2020, federal student-loan payments have been paused and interest has been waived to give borrowers financial relief during the pandemic. New documents obtained by Politico through a public records request found that the Education Department has been issuing guidance to student-loan companies surrounding restarting payments. According to the documents, the companies should prepare to resume charging interest on borrowers' loans in September, and the department is anticipating borrowers will make their first monthly payment in October. But some borrowers want to ensure that the department will keep pushing for relief, regardless of a court ruling.

☆ This new paperwork rule could make getting student-loan forgiveness easier for government and nonprofit workers
▼ + stars: | 2023-04-13 | by ( Ayelet Sheffey | ) www.businessinsider.com time to read: +3 min

The Education Department updated guidance for applying for Public Service Loan Forgiveness. Previously, strict paperwork requirements caused many borrowers' applications to be rejected. President Joe Biden's Education Department updated guidance for the Public Service Loan Forgiveness (PSLF) program, which is intended to forgive student debt for government and nonprofit workers after ten years of qualifying payments. "FSA has begun to implement and test a digital employer signature for PSLF," an Education Department spokesperson told Insider. In October 2021, it implemented a limited-time waiver to allow previously ineligible payments to count toward a borrower's loan forgiveness progress.

☆ This Ivy League school could earn you the highest salary—and it's not Harvard or Yale
▼ + stars: | 2023-04-11 | by ( Kamaron Mcnair | ) www.cnbc.com time to read: +1 min

There are plenty of reasons to attend an Ivy League institution if you're one of the lucky students to be admitted. The University of Pennsylvania in particular reports the highest median incomes among former attendees who received federal aid. Even those who don't make it to the highest echelon of wealth may be able to expect a decent salary after attending an Ivy League school. Former Ivy League attendees who received federal aid earn a median of about $90,500 a decade after starting school, according to Department of Education (ED) data. Here's a look at all eight Ivy League schools, ranked by median earnings among federal aid recipients.

☆ The FAFSA is getting a makeover later this year—here's what's changing
▼ + stars: | 2023-04-11 | by ( Kamaron Mcnair | ) www.cnbc.com time to read: +3 min

If you've ever filled out the Free Application for Student Aid (FAFSA) before, you're probably familiar with the stress, confusion and possible tears that often come with it. The number gave your school and federal aid administrators an idea of how much financial support to offer. The student aid index (SAI) will serve the same purpose, but use a different formula. Federal Student Aid (FSA) published a draft of the calculations to be used to determine SAI. Aid administrators will subtract the student's SAI from their determined cost of attendance in order to assess aid eligibility and amounts, according to FSA.

☆ Millions of student-loan borrowers will face 'catastrophic consequences' like delays in debt relief if Congress doesn't give Biden's Education Department more money, 17 Democratic lawmakers say
▼ + stars: | 2023-04-10 | by ( Ayelet Sheffey | ) www.businessinsider.com time to read: +4 min

Seventeen Democrats wrote a letter to lawmakers asking them to increase Federal Student Aid funding. The Democrats said lack of funding is "catastrophic" for millions of borrowers relying on relief. Congress didn't increase FSA funding last year, causing delays in repayment reforms. They called on the subcommittee to provide $2.7 billion in funding for FSA in fiscal year 2024, consistent with President Joe Biden's budget request. "The lack of adequate resources creates more barriers for students to continue their education," the lawmakers wrote.

☆ Student-loan borrowers are about to face more hurdles after a major company reduced its call center hours — and laid off 550 more employees
▼ + stars: | 2023-04-10 | by ( Ayelet Sheffey | ) www.businessinsider.com time to read: +5 min

The Education Department modified student-loan company Nelnet's contract, per SEC documents. The changes included reduced call center hours, contributing to Nelnet laying off 550 employees. It also allows Nelnet to have a higher percentage of borrowers hang up without receiving help. At the end of March, student-loan company Nelnet announced a series of changes to its contract implemented by the Education Department. But it's a critical year for student-loan borrowers, and Nelnet is just one sign that they're facing a rocky road ahead.

☆ Why a millennial with $134,000 in student debt hasn't made payments while living abroad for nearly a decade
▼ + stars: | 2023-04-09 | by ( Ayelet Sheffey | ) www.businessinsider.com time to read: +6 min

Todd Squitieri, 37, has $134,000 in student debt he's placed in forbearance for nearly a decade. He moved abroad and says he's much happier, but he couldn't leave the student debt behind. Even with $134,000 in student debt hanging over his head. But as Squitieri was traveling and not making payments on his student loans, the balance was growing, and leaving the country doesn't mean he can leave his student debt behind. Biden's student-loan forgiveness is 'token service'There could be relief on the horizon for millions of borrowers with federal student debt.

☆ A mom took out over $77,000 in student loans to send her son with autism to college. He got his debt wiped out — but she's still paying hers off with no end in sight.
▼ + stars: | 2023-04-08 | by ( Ayelet Sheffey | ) www.businessinsider.com time to read: +6 min

Marsha Wipperman, 59, took on parent PLUS student loans so her son with autism could attend college. "I'm going pay it. So I just signed away on my parents loans because that's what a parent does." Marsha Wipperman took on $77,000 in PLUS loans for her son. 'I've done 100% what I needed to do at that time'Parent PLUS loans gave Wipperman's son the opportunity to attend college, and she wouldn't have done it any other way.

☆ Meet a teacher who paid his student loans for 6 more years than he needed to qualify for debt cancellation. Now he can't get his money back.
▼ + stars: | 2023-04-02 | by ( Ayelet Sheffey | ) www.businessinsider.com time to read: +8 min

He contacted his servicer, MOHELA, in August to get refunded on those payments, but hasn't had any luck. Currence, 41, took on about $13,000 in student loans for his Bachelor's degree in 2005, and he had nearly paid it all off by the time he took on another $15,000 in loans in 2018 for his Master's degree. Given his career in public service, Currence wanted to take advantage of the Public Service Loan Forgiveness (PSLF) program, which forgives student debt for government and nonprofit workers after ten years of qualifying payments. Currence jumped at the opportunity to consolidate his loans into federal direct loans under student-loan company MOHELA to qualify for debt relief. They told him he could then consolidate his loans to get his remaining balance wiped out under PSLF, he said.

☆ Republicans want to cut $1 trillion in spending — and instead of introducing 1 bill, they've introduced 500 to do just that
▼ + stars: | 2023-03-30 | by ( Ayelet Sheffey | Juliana Kaplan | ) www.businessinsider.com time to read: +4 min

GOP lawmakers published over 500 bills on different areas in which they want to cut spending. It comes as Biden has been urging Republicans to put forth a concrete budget. GOP budget chair Jodey Arrington said the budget could take months, and the primary focus should be raising the debt ceiling. Republican lawmakers just made their latest move in the ongoing drama to raise the debt ceiling and cut spending. Now, Republicans have some ideas — or rather, over 500 proposed bills for limiting funding to a slew of federal government programs and agencies.

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