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☆ Student-loan borrowers keep running into hurdles as Biden's debt relief promises are piling up in court
  + stars: | 2023-08-13 | by ( Ayelet Sheffey | ) www.businessinsider.com   time to read: +6 min
The lawsuits concern relief for borrowers on income-driven repayment and those who applied for borrower defense. On top of that, borrowers are still reeling from the June Supreme Court decision that struck down President Joe Biden's plan to cancel up to $20,000 in student debt for federal borrowers. The announcement was part of the department's one-time account adjustment to ensure borrowers payments are up to date, and those who completed more than the required payments would receive a refund. But just days later, a separate debt relief measure got blocked in court. The department has already notified borrowers of that relief, and it expects more will qualify.
Persons: SCOTUS, Biden, Joe Biden's, it's, Jason Harmon, I've, I'm, Harmon, —, Reagan Organizations: Service, Education Department, New Civil Liberties Alliance, Cato Institute, Mackinac Center for Public, Public, An Education Department, Trump, Circuit, Career Colleges, Schools of Texas Locations: Wall, Silicon
☆ Biden's efforts to make it easier for defrauded student-loan borrowers to get debt relief were blocked by a conservative court
  + stars: | 2023-08-07 | by ( Ayelet Sheffey | ) www.businessinsider.com   time to read: +4 min
The Fifth Circuit blocked Biden's new rules to ease the debt relief process for defrauded borrowers. The changes to borrower defense are now blocked as the legal process plays out. The rules would create a more streamlined application process for borrowers seeking debt relief, along with expanding the types of misconduct that would qualify a borrower for a loan discharge. "Defrauded borrowers are legally entitled to relief and their institutions should be held accountable," he said. For now, the department's new rules for borrower defense will be blocked as the legal process proceeds.
Persons: Joe Biden's, Ronald Reagan, Donald Trump —, CCST, Aaron Ament, Jason Altmire, — Organizations: Circuit, Service, Fifth Circuit, Colleges, Schools of Texas, Education Department, The Education Department, Student Defense, Education Colleges, Universities — Locations: Wall, Silicon
☆ US court blocks Biden debt relief rule benefiting defrauded students
  + stars: | 2023-08-07 | by ( Nate Raymond | Thomson Reuters | Nate Raymond Reports On The Federal Judiciary | ) www.reuters.com   time to read: +2 min
U.S. President Joe Biden speaks about his plans for continued student debt relief after a U.S. Supreme Court decision blocking his plan to cancel $430 billion in student loan debt, at the White House in Washington, U.S. June 30, 2023. The rule is separate from Biden's more sweeping student debt relief plan. The Supreme Court in June blocked his administration from canceling $430 billion in student loan debt for 43 million borrowers. The Democratic president has since announced plans to provide relief for student loan borrowers using a different approach. CCST sued in February after the Education Department in October finalized a rule changing a "borrower defense to repayment" program that allows students to seek debt relief if their schools mislead them.
Persons: Joe Biden, Leah Millis, Biden, Edith Jones, Kyle Duncan, Cory Wilson, CCST, The Biden, Nate Raymond, Alistair Bell Organizations: U.S, Supreme, White, REUTERS, ITT Educational Services, Circuit, Colleges, Schools of Texas, Democratic, Republican, U.S . Department of Education, Education Department, Corinthian Colleges, ITT Technical Institute, The, Thomson Locations: Washington , U.S, New Orleans, Boston
☆ A federal judge who first blocked broad student-loan forgiveness just gave Biden a win by agreeing to pass on a case challenging a debt relief rule
  + stars: | 2023-04-18 | by ( Ayelet Sheffey | ) www.businessinsider.com   time to read: +4 min
A federal judge that blocked student-debt relief agreed to transfer a related case to a different court. The case was challenging a rule to help borrowers who say they were defrauded by their schools. The Education Department said it was filed in the wrong venue, and the Trump-appointed judge agreed in a rare win for the administration. On February 28, CCST filed an 87 page complaint against the Education Department, saying that the department's latest reforms to the borrower defense process creates a "framework with new federal standards, adjudicatory schemes, and evidentiary presumptions." Judge Reed O'Connor, who is in the same district as Pittman, ruled the Affordable Care Act invalid in 2018.
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