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☆ What happens to student-loan borrowers who miss payments starting next month
▼ + stars: | 2023-09-27 | by ( Ayelet Sheffey | ) www.businessinsider.com time to read: +5 min

Federal student-loan payments are starting up again beginning next week. AdvertisementAdvertisementMillions of student-loan borrowers are about to face another monthly bill — and they might not be able to afford it. On October 1, borrowers will begin receiving bills for their federal student-loan payments. Here's what borrowers should be aware of, along with the potential consequences of missing a payment starting next month. AdvertisementAdvertisementOn-ramp periodThe Education Department announced some temporary relief for borrowers if they find they cannot afford payments next month.

Persons: —, Joe Biden, Biden, servicer Organizations: Service, Education Department, Education, Perkins, Social, Higher Locations: COVID

☆ 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

☆ Student loan interest resumes Sept. 1. What that means for subsidized vs. unsubsidized debt
▼ + stars: | 2023-08-31 | by ( Greg Iacurci | ) www.cnbc.com time to read: +2 min

Srdjanpav | E+ | Getty ImagesHow interest accrues on loansDirect Subsidized Loans are available to undergraduate students who demonstrate a financial need. Unlike that of subsidized loans, interest on unsubsidized loans starts accruing immediately upon disbursement and accrues even during deferments or grace periods, making this debt more expensive. The term Stafford Loan is an informal way of referring to Direct Subsidized Loans and Direct Unsubsidized Loans made via the Direct Loan Program. It also refers to subsidized or unsubsidized Federal Stafford Loans made via the Federal Family Education Loan, or FFEL, program. During that time, interest wasn't accruing on any loans — meaning unsubsidized loans essentially became subsidized debt for some borrowers.

Organizations: U.S . Department of Education, Stafford Loans, Department, Education Department, Program, Federal Stafford Loans, Federal Family Education Locations: disbursement, Stafford

☆ Biden's Education Department is taking the next step to get broad student-loan forgiveness to millions of borrowers
▼ + stars: | 2023-08-29 | by ( Ayelet Sheffey | ) www.businessinsider.com time to read: +4 min

The Education Department announced its latest step in the broad student-debt relief process. After the Supreme Court struck down Biden's first plan to cancel student debt broadly for borrowers using the HEROES Act of 2003, his Education Department announced it would be attempting relief using a different law: the Higher Education Act of 1965. "When the Supreme Court ruled against the Biden-Harris Administration's student debt relief plan, we did not waste a moment opening up a new pathway to debt relief," Education Secretary Miguel Cardona said in a statement. Since borrowers will not be entering repayment with broad relief, the department also announced a 12-month "on-ramp" period during which missed payments will not be reported to credit agencies, but interest will still accrue during that time. However, while the department is moving forward with the broad debt relief process, its future is uncertain due to conservative opposition — and potential legal challenges that could once again halt relief for borrowers.

Persons: Joe Biden, Harris, Miguel Cardona Organizations: Education Department, Service, Higher, Biden, Loan, Black Colleges, Universities, Federal Family Education Locations: Wall, Silicon

☆ When student debt payments restart, your loan type will make a big difference
▼ + stars: | 2023-07-19 | by ( Greg Iacurci | ) www.cnbc.com time to read: +3 min

Damircudic | E+ | Getty ImagesThe looming end of a pandemic-era pause to student loan payments and interest puts a spotlight on a big difference between two types of debt: subsidized and unsubsidized loans. How interest accrues on subsidized, unsubsidized loansDirect Subsidized Loans are available to undergraduate students who demonstrate a financial need. About 30.7 million people have an unsubsidized loan, with an average balance of about $19,000, according to the Education Department. (The term Stafford Loan is an informal way of referring to Direct Subsidized Loans and Direct Unsubsidized Loans made via the Direct Loan Program. It also refers to subsidized or unsubsidized Federal Stafford Loans made via the Federal Family Education Loan, or FFEL, program.)

Persons: — Organizations: Stafford Loans, U.S . Department of Education, Department, Education Department, Program, Federal Stafford Loans, Federal Family Education Locations: Stafford

☆ Biden is forgiving $39 billion in student debt for 804,000 borrowers — here's who qualifies
▼ + stars: | 2023-07-19 | by ( Annie Nova | ) www.cnbc.com time to read: +1 min

What was the connection between these two actions? Although the Supreme Court concluded Biden didn't have the power to broadly cancel people's student debt balances at the end of June, his administration used existing regulatory authority to carry out the latest relief. Here's what to know, and how to tell if you qualify. Qualifying borrowers have been paying for decadeswatch nowMany kinds of student loans qualifyGovernment-held Federal Family Education Loans, or those in the FFEL, program, direct loans and Parent PLUS loans all qualify for the latest relief. When borrowers will hear about debt relief

Persons: Caroline Brehman, Joe Biden's, Biden didn't Organizations: U.S . Department of Education, Inc, Biden, Government, Family Locations: Washington ,

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

☆ 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

☆ Do You Qualify for Biden’s $39 Billion Student Debt Cancellation?
▼ + stars: | 2023-07-14 | by ( Tara Siegel Bernard | More About Tara Siegel Bernard | ) www.nytimes.com time to read: +1 min

Tens of thousands of borrowers with federal student loans are probably wondering: Is my debt load about to get a little lighter? In the coming days and months, thousands of borrowers will learn whether they received an account adjustment resulting in enough qualifying payments to eliminate their loans — a process that will continue until the end of the year. After that, borrowers who don’t yet have enough qualifying payments for cancellation will receive their updated payment counts. Here’s what we know about who’s eligible:Who qualifies? Borrowers with direct loans or those made through the Federal Family Education Loan, or F.F.E.L., program and held by the Education Department may qualify, including borrowers with Parent PLUS loans.

Persons: servicers Organizations: Biden, Federal Family Education, Education Department, Parent

Our experts answer readers' student loan questions and write unbiased product reviews (here's how we assess student loans). Borrowers who have refinanced federal loans into private loans are ineligible for forgiveness. See Insider's picks for the best student loan refinance lenders >>What is Biden's student loan forgiveness plan? Federal student loans you've refinanced are not eligible for forgiveness under Biden's debt relief plan. Types of student loans that are eligible for forgivenessThe Education Department maintains a list of eligible student loans on its website, which includes the following:Federal Direct Loans — subsidized, unsubsidized, PLUS loans, and consolidation loansFederal Family Education Loan (FFEL) Program loans (ended in 2010)Federal Perkins Loan Program loans (ended in 2017)Education Department-held defaulted loansAll loans funds must have been received on or before June 30, 2022.

Persons: Pell Grant, —, Biden, Pell, you've, doesn't, Andrew Latham, Biden's, Perkins, Latham Organizations: Service, —, Pell Grants, Education Department, US, of Education, Department, Federal, Family Education, Loan Program, Public

☆ 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.

☆ Ron DeSantis quietly signs 6-week abortion ban into law in Florida
▼ + stars: | 2023-04-14 | by ( Matt Dixon | ) www.cnbc.com time to read: +6 min

Ron DeSantis quietly signed legislation Thursday that would ban most abortions after six weeks in Florida, a move that will weigh on his likely 2024 presidential bid. The Florida law bans abortions at six weeks but creates new exemptions for rape and incest up to 15 weeks of pregnancy. Last year, DeSantis signed a 15-week abortion ban passed by the GOP-controlled Legislature that is currently before the Florida Supreme Court. He supports a federal abortion ban. Ambassador Nikki Haley, who announced her candidacy in February, said on NBC's "TODAY" show that she would not support a "full-out federal ban" but would support a federal 15-week abortion ban.

☆ What student loan borrowers need to know about the 2023 tax season
▼ + stars: | 2023-03-21 | by ( Annie Nova | ) www.cnbc.com time to read: +2 min

Prostock-studio | Istock | Getty ImagesYou probably can't claim a student loan interest deductionBefore the Covid pandemic, nearly 13 million taxpayers took advantage of the student loan interest deduction, which allows borrowers to deduct up to $2,500 a year in interest payments they've made on their private or federal student loans. "You can claim the student loan interest deduction based only on amounts actually paid," Kantrowitz said. The break is only for payments to interest, Kantrowitz said, and interest has been suspended now for years. The best way to determine if you have potential interest to claim is to contact your loan servicer, said Betsy Mayotte, president of The Institute of Student Loan Advisors. Your lender reports your interest payments over a certain amount to the IRS on a tax form called a 1098-E, and should provide you with a copy, too.

☆ Biden's Education Secretary responds to student-loan borrowers with private debt who don't qualify for federal relief: 'We can control our loans. We can't control other loans'
▼ + stars: | 2023-03-01 | by ( Ayelet Sheffey | ) www.businessinsider.com time to read: +3 min

Miguel Cardona pushed back on opponents who say Biden's debt relief is unfair to those with private loans. He said the department "can't control other loans," responding to those with private debt. The Supreme Court heard oral arguments to the federal relief plan on Tuesday. He was asked what he would say to those who do not qualify for the federal relief, like borrowers with private loans. Shortly after Biden's debt relief was announced, the Education Department changed the eligibility requirements due to the rising legal challenges.

☆ Some borrowers may qualify for a student loan interest deduction, despite payment pause
▼ + stars: | 2023-01-31 | by ( Annie Nova | ) www.cnbc.com time to read: +1 min

Fewer borrowers will be able to claim the student loan interest deduction for 2022, with federal loan payments on hold for the duration of the year. However, since March 2020, the U.S. Department of Education has allowed most federal student loan borrowers to pause their monthly bills without interest accruing. As a result, most people with federal student loans haven't made a payment since, and don't qualify for the deduction. If you owe student loans that haven't been eligible for the government's break, including commercially-held Federal Family Education Loans (FFEL) or any private student loans, you may have made interest payments that can be deducted. The best way to determine if you have potential interest to claim is to contact your loan servicer, said Betsy Mayotte, president of The Institute of Student Loan Advisors.

☆ New York’s student loan forgiveness program covers 24 monthly payments. Here's what borrowers need to know
▼ + stars: | 2023-01-24 | by ( Annie Nova | ) www.cnbc.com time to read: +2 min

Not all student loans qualify for the state relief. Private student loans are ineligible. Unsure of what kind of student loans you hold? Up to 24 months of student loan payments availableUnder the Get On Your Feet Loan Forgiveness Program, New York state may cover your full student loan bill for up to 24 months under a qualifying income-driven repayment plan. The state makes the payments directly to your student loan servicer.

☆ Meet a borrower with $43,000 in student debt who thought he was getting Biden's loan forgiveness, only to have it 'yanked away' a month later
▼ + stars: | 2022-11-06 | by ( Ayelet Sheffey | ) www.businessinsider.com time to read: +6 min

Kristopher Cabreira doesn't qualify for Biden's student-debt relief because he has FFEL loans. While FFEL loans initially qualified, Biden reversed the guidance on September 29. But a decision the Education Department made on September 29 dashed all of his plans. Cabreira's student loans are federal loans managed by private banks within the Federal Family Education Loan (FFEL) program. "There's been no response from the Education Department, the White House, or even any Democrats," Cabreira said.

☆ 26 million borrowers have applied for student loan forgiveness. But GOP challenges put plan at risk
▼ + stars: | 2022-11-03 | by ( Annie Nova | ) www.cnbc.com time to read: +4 min

SKLA | iStock | Getty ImagesClose to 26 million Americans have applied for student loan forgiveness, and the Biden administration has already approved 16 million of the requests, the White House said Thursday. Yet its entire loan cancellation plan could be in jeopardy due to the legal challenges brought by Republicans, it warned. "If Republican officials get their way, tens of millions of Americans' monthly costs will rise dramatically when student loan payments resume next year," according to a statement by the administration. Most recently, a legal challenge from six GOP-led states temporarily stopped the administration from starting to forgive borrowers' debt. Tribe agreed, and said the other challengers also were on shaky legal standing.

☆ A key benefit for student-loan borrowers in public service just expired. Here's what happens now.
▼ + stars: | 2022-11-01 | by ( Ayelet Sheffey | ) www.businessinsider.com time to read: +3 min

The Public Service Loan Forgiveness waiver expired on October 31. Last October, President Joe Biden's Education Department announced reforms to the Public Service Loan Forgiveness (PSLF) program, which forgives student debt for government and nonprofit workers after ten years of qualifying payments. Well instead, today we are announcing permanent changes to reduce the red tape and the confusing rules that riddle the PSLF program." Part of those changes included a one-time account adjustment to borrowers enrolled in PSLF, along with income-driven repayment plans, to resolve any mistakes on borrowers' payments to date. Beyond that adjustment, PSLF borrowers can expect to see improvements to the program starting next summer.

☆ 2 groups of student-loan borrowers need to take action to get expanded loan forgiveness benefits
▼ + stars: | 2022-10-26 | by ( Ayelet Sheffey | ) www.businessinsider.com time to read: +4 min

The Education Department announced permanent fixes to the Public Service Loan Forgiveness program. It came just days before the PSLF waiver, which expands relief, expires on October 31. As the Education Department announced on Tuesday, though, the waiver may be expiring but reforms will not end there. Borrowers with federal loans that are not direct or managed by the Education Department. To qualify for the PSLF one-time account adjustment, borrowers must have a federal direct loan or a Federal Family Education Loan (FFEL) managed by the department.

☆ Education Department to reduce 'red tape' on public service loan forgiveness, making it easier for borrowers to qualify
▼ + stars: | 2022-10-25 | by ( Jessica Dickler | ) www.cnbc.com time to read: +2 min

watch nowThe Biden administration announced Tuesday it is making permanent changes to its public service loan forgiveness plan to make it easier for borrowers to have their loans forgiven. "Our team has worked to turn public service loan forgiveness from a promise broken into a promise kept," U.S. Secretary of Education Miguel Cardona said during a press call about the changes. However, from the start, the path to forgiveness has been plagued with problems, making it hard to get relief. Those may include partial, late or lump sum payments, payments made under a different repayment plan and credit for periods in deferment and forbearance. If you have either a Federal Family Education Loan (FFEL) or a Federal Perkins Loan, you now have until July 2023 to consolidate your loans into direct loans with your servicer.

☆ Biden's student loan forgiveness plan is on hold. Here are key issues borrowers need to know
▼ + stars: | 2022-10-24 | by ( Annie Nova | ) www.cnbc.com time to read: +4 min

Porquenostudios | Istock | Getty ImagesFor those with student debt, the last few months may have given you whiplash. Here's what borrowers need to know about the development, and what it could mean for your student debt. They filed an appeal, and asked the court to stay the president's plan, which was supposed to start unfolding as early as this week, while their request is considered. Circuit Court of Appeals granted the states' emergency petition, leaving the Biden administration unable to start forgiving any student debt for now. The U.S. Department of Education had said borrowers who hold these FFEL, or Federal Family Education Loans, can take this step to qualify for its relief.

☆ How to Apply for Student Loan Forgiveness
▼ + stars: | 2022-10-22 | by ( ) www.wsj.com time to read: +15 min

The official student loan forgiveness application is available on the Federal Student Aid website. What you can do now to prepare for student loan repayment and reliefFirst and foremost, you can fill out the application for up to $20,000 in student loan forgiveness on the Federal Student Aid website. “January will almost certainly be a chaotic time for the [student loan] servicers,” says Michael Lux, attorney and founder of The Student Loan Sherpa. You might also check out alternative options for student loan forgiveness, such as Public Service Loan Forgiveness and Teacher Loan Forgiveness. If your state charges a tax rate of 5%, for example, expect to pay about $500 in taxes on $10,000 in loan forgiveness or $1,000 on $20,000 in loan forgiveness.

☆ Biden's student-loan forgiveness could be delayed as lawsuits mount. Here's where 6 major cases stand.
▼ + stars: | 2022-10-19 | by ( Ayelet Sheffey | ) www.businessinsider.com time to read: +8 min

Biden's student-loan forgiveness is facing at least six lawsuits from conservative groups. The administration faces at least six major lawsuits seeking to halt Biden's debt relief plan. For now, borrowers can still continue applying for debt relief on the studentaid.gov website that will close in December 2023. On September 27, the Pacific Legal Foundation — a conservative nonprofit legal organization — helmed the first major lawsuit against Biden's debt relief. On October 19, WILL asked the Supreme Court to halt Biden's debt relief will waiting for a decision on its appeal.

☆ The student-loan forgiveness application is officially live, and your debt relief is now being processed
▼ + stars: | 2022-10-17 | by ( Ayelet Sheffey | ) www.businessinsider.com time to read: +3 min

Biden officially launched the application site for student-loan forgiveness on Monday. On Monday, Biden announced that the site to apply for student-loan forgiveness is officially live, following a beta test of the website conducted over the weekend. These are the federal loans that are eligible for relief, per the department:Undergraduate loansGraduate loansSpousal loansAnd parent PLUS and grad PLUS loans. The department recommends borrowers apply before mid-November to get the relief into their accounts before payments resume early next year, and student-loan companies will notify borrowers once the relief is processed. During his remarks, Biden maintained he has the legal standing to enact this broad debt relief and he called Republican pushback "wrong and hypocritical" during his remarks.

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