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"These student loan borrowers had the reasonable expectation and belief that they would not have to make additional payments on their federal student loans," said Education Department Undersecretary James Kvaal said in a court filing last year. Former President Donald Trump first announced the stay on federal student loan bills and the accrual of interest in March 2020, when the coronavirus pandemic hit the U.S. and crippled the economy. New SAVE payment plan leads to billing errorsTo ease the transition for borrowers, the Biden administration worked quickly to implement a new payment plan option, which it describes as the "most affordable repayment plan ever." Yet many borrowers who've signed up for the Saving on a Valuable Education, or SAVE, plan, complain they've gotten incorrect bills. According to Kantrowitz, student loan servicers seem, in some cases, to be using the 2022 poverty line to calculate borrowers' payments instead of the current 2023 figure.
Persons: Joe Biden's, James Kvaal, Kvaal, Donald Trump, Biden, who've, they've, Mark Kantrowitz, he's, Kantrowitz, servicers, Ella Azoulay, Buchanan Organizations: Creatas, Getty, U.S . Department, Valuable Education, U.S . Department of Education Locations: U.S
The Education Department announced it's moving forward with the broad student-debt relief process. AdvertisementAdvertisementPresident Joe Biden's Education Department just took the next step on its second attempt to get broad student-debt relief to millions of borrowers. On Friday, the Education Department released a paper outlining what it is considering as it develops its new plan for broad student-loan forgiveness. AdvertisementAdvertisement"The Biden-Harris Administration has taken unprecedented action to fix the broken student loan system and deliver record amounts of student debt relief," Education Secretary Miguel Cardona said in a statement. "Now, we are diligently moving through the regulatory process to advance debt relief for even more borrowers.
Persons: , Joe Biden's, Harris, Miguel Cardona, I'm Organizations: Education Department, Service, Joe Biden's Education Department, Higher, Biden, Harris Administration, Black Colleges, Universities
That's the same day student-loan payments are set to resume. download the app Email address Sign up By clicking “Sign Up”, you accept our Terms of Service and Privacy Policy . AdvertisementAdvertisementRep. Ayanna Pressley does not want student-loan borrowers to worry about repayment and a government shutdown at the same time. With that deadline just days away, that prospect is looking increasingly likely — and it would also fall the same day federal student-loan borrowers could start facing monthly bills again after an over three-year pause. Pressley said in a Wednesday statement that President Joe Biden should pause student-loan payments and interest accrual if a shutdown does happen, and that "it is abundantly clear that student loan payments should not resume October 1."
Persons: Pressley, , Ayanna Pressley, Joe Biden, servicers, Biden's, Biden, Education James Kvaal Organizations: Service, Education, The Education Department, Republican, Education Department
Many people made their usual student loan payment in March 2020, before former president Donald Trump first announced the pause on federal student loan bills and interest accrual, he explained. Depending on when their loan servicer received those funds, it may have been considered an extra payment that has now pushed back their due date. You can contact your loan servicer or log in to StudentAid.gov to learn your exact due date, said higher education expert Mark Kantrowitz. The typical federal student loan bill is $350 a month. If you were enrolled in the standard 10-year repayment plan prior to Covid and still are, your monthly payment should not have changed.
Persons: Buchanan, Donald Trump, servicer, Mark Kantrowitz, they're, Kantrowitz, Grace Locations: StudentAid.gov
New York CNN —As the US national debt passes $33 trillion and a government shutdown looms, Wall Street feels defensive. What’s happening: The gross national debt has grown at an alarming pace since then — by $1 trillion in the last three months alone. Political finger pointing around what caused the accelerated debt accrual, meanwhile, has left the government at an impasse around the budget. The recent increase in interest rates has already made it much more expensive for the government to pay back what it owes. That would leave the door open for another rate increase, which could come when the following meeting concludes, on November 1.
Persons: Fitch, , Michael Peterson, Peter G, Peterson, Biden, Gary Schlossberg, Jennifer Timmerman, Gregory Daco, Bryan Mena, Jerome Powell, Instacart, Jordan Valinsky Organizations: CNN Business, Bell, New York CNN, AAA, AA, GOP, UAW, Wells, Investment Institute, Fed, Federal, Financial, Walmart Locations: New York, , Amazon
Student loan repayments are set to resume in October, and that means there will be fewer dollars in borrowers' budgets to order through DoorDash , according to MoffettNathanson. "Does the resumption of loan repayments introduce bookings risk to food delivery?" After three years, the Department of Education's Covid-19 relief pause for federal student loan borrowers is winding down. Student loan interest resumed accrual Sept. 1 and payments will be due in October. That means borrowers could be on the hook for $225 per month in average student loan repayments, according to estimates from MoffettNathanson.
Persons: Michael Morton, DoorDash, Morton, Michael Bloom Organizations: Department, Education's Locations: DoorDash, MoffettNathanson
CNN —Mothers who followed the Mediterranean diet while pregnant improved their children’s cognitive, social and emotional development at age 2 compared with children whose mothers did not follow the diet, according to a new randomized clinical trial. “No other dietary model possesses such an impressive accrual of scientific evidence as the traditional Mediterranean diet,” said Martínez-González, who is also an adjunct professor of nutrition at the Harvard T.H. The number of low-weight births dropped to 15.6% of the women who attended stress-reduction classes and 14% of the women who ate a Mediterranean diet. The Mediterranean diet focuses on fruits, vegetables, whole grains, beans and seeds, with a few nuts and a heavy emphasis on extra-virgin olive oil. “The first arm (Mediterranean diet) addressed a more physical and direct aspect: the dietary pattern and the supply of interesting nutrients that are known to be beneficial.
Persons: CNN —, , , Miguel Martínez, David Katz, ” Katz, nutritionists, Bayley, Katz, González Organizations: CNN, University of Navarra, Harvard, of Public Health, True Health Initiative Locations: Pamplona, Spain, Chan, Boston, Barcelona
Ms. Thompson said she was able to use the three-year pause on student loan payments to pay off some other debts. But she estimated she still had another three or four years to go before the remainder of her student loans would be paid off. “In general, we’ve seen clients focusing more on savings and not focusing on those student loans,” he said. “They really didn’t have a plan to address those student loans.”Mr. Graham said a lot of borrowers were surprised when they realized how much student loan debt could grow, since it continued to accrue interest even if the borrower had placed the loan in deferment or forbearance. “I just don’t think they understand the ramifications of the interest being charged on that debt over time,” Mr. Graham said.
Persons: Thompson, , Ms, “ It’s, , Trent Graham, we’ve, Mr, Graham, accrual, ” Mr Locations: GreenPath, deferment, forbearance
Americans held over $1 trillion in credit card debt in the second quarter of 2023, a new record. The rise in credit card debt helped push total household debt to a record-high $17.06 trillion. For the last seven quarters, credit card balances have grown year over year amid strong consumer spending despite high prices. Despite these record-high credit card balances, there are some silver linings. Are you dealing with an untenable amount of credit card debt, or worried about student loan payments restarting?
Persons: Bankrate, Courtney Alev, Alev, Donald Trump, Joe Biden, Biden, Ted Rossman, Rossman Organizations: Federal Reserve Bank of New, Service, Privacy, New York Fed, Credit Karma, Fed, Consumer Financial, Bureau, Education Department, New, jkaplan Locations: Federal Reserve Bank of New York, Wall, Silicon, It's, York
A pair of Democrats introduced a bill to eliminate interest on existing federal student loan balances. "Thanks to this fix, 43 million Americans with existing federally held student loans would see their interest rates immediately eliminated," the press release said. The federal government should not exacerbate the problem by making money off borrowers' federal student loans," Courtney said in a statement. This legislation comes as interest on student-loan payments is beginning to accrue again in September, with borrowers resuming payments one month later. People should not be incurring interest during this 12-month on-ramp period, so I highly urge the administration to consider suspending those interest payments."
Persons: Joe Courtney, Vermont Sen, Peter Welch, Courtney, SCOTUS, Biden's, Pell, Virginia Foxx, Joe Biden's, Alexandria Ocasio, Cortez Organizations: Service, Democratic, Connecticut, Republican, Federal Assistance, FAIR, New York Rep Locations: Wall, Silicon, Vermont, Alexandria
Johnnygreig | E+ | Getty ImagesInterest will start accruing in SeptemberAlthough federal student loan payments won't be due until October, interest will continue collecting on your debt again on Sept. 1, the Education Department says. The accrual of interest has been suspended on most federal student loans since March 2020. You can contact your loan servicer or log in to StudentAid.gov to learn your exact due date, said higher education expert Mark Kantrowitz. Recent graduates, meanwhile, may get even more time if they're still in their grace period, Kantrowitz said. For example, loans will not go into default and delinquencies will not be reported to credit reporting agencies, Kantrowitz said.
Persons: Mark Kantrowitz, they're, Kantrowitz, Grace Organizations: Education Department Locations: StudentAid.gov
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
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
The NumbersBank of America reported a profit of $7.4 billion last quarter, up nearly 20 percent from the year before. Revenue grew more than 10 percent, to $25.2 billion in the second quarter. Customer spending on credit and debit cards rose 3 percent, to $226 billion, the bank said. Notably, the lender’s investment-banking business rebounded in the second quarter, after a sharp drop in deal-making had cast a chill over the industry. Last week, Bank of America was fined $150 million by two federal regulators for charging its customers improper fees and denying them promised sign-up bonuses.
Persons: Mr, Borthwick, Takeaways Brian Moynihan, , , “ That’s, Alastair Borthwick, “ We’ve, that’s, Wells Fargo, Banks, Goldman Sachs, They’ll Organizations: Bank of America, Revenue, Citigroup, JPMorgan Chase, Federal Deposit Insurance Corporation, Western Alliance Locations: U.S
Investors hoping to capture more upside from artificial intelligence could turn to a sector that's underperformed this year, and maybe not immediately associated with AI: Health care. Greater drug discovery The bull case for health care boils down to several factors including improvements made in drug discovery. Cox added that one overlooked health care and AI beneficiary would be Amazon , which he called a "sleeper" pick for investors. This year, it closed a $3.9 billion transaction for primary health care provider One Medical . The investor also called Rockwell Automation one of his stock picks that could benefit from AI in health care.
Persons: Jamie Cox, Morgan Stanley, Cox, Mizuho, Rockwell Organizations: Nvidia, Harris Financial, Johnson, Merck, Pfizer, Exscientia, Amazon, Rockwell Automation, . UnitedHealth Locations: U.S, U.K
U.S. President Joe Biden is joined by Education Secretary Miguel Cardona as he announces new actions to protect borrowers after the Supreme Court struck down his student loan forgiveness plan in the Roosevelt Room at the White House on June 30, 2023 in Washington, DC. Chip Somodevilla | GettyExtra protections follow Supreme Court decisionThis aid is not another payment pause extensionFormer President Donald Trump first announced the stay on federal student loan bills and the accrual of interest in March 2020, when the coronavirus pandemic hit the U.S. and crippled the economy. The pause has since been extended eight times. The latest announcement by Biden is not another extension of that policy. (Borrowers' official due date will depend on their loan terms.)
Persons: Joe Biden, Education Secretary Miguel Cardona, Chip Somodevilla, Donald Trump, Biden Organizations: Education Secretary, White House Locations: Washington ,
"I would like to see interest payments suspended during this time, especially during that 12-month ramp-up period," Ocasio-Cortez said. People should not be incurring interest during this 12-month on-ramp period, so I highly urge the administration to consider suspending those interest payments." "Of course, we still believe in pursuing student-loan cancellation and acting faster than that 12-month period wherever possible," she added. Biden has not yet commented on those requests, but the Education Department recommends borrowers make payments because interest is set to accrue a month before payments begin again in October. "However, the Secretary has directed his staff to explore policy options for debt relief that will help as many people as possible."
Persons: Alexandria Ocasio, Cortez, Biden, , Joe Biden's, Cortez isn't, Ro Khanna, it's Organizations: Service, Supreme Court, CNN, ABC News, Higher, Education, Department, Federal Locations: Rep, Alexandria, California
Resetting student loans brings Econ 101 lessons
  + stars: | 2023-06-30 | by ( Ben Winck | ) www.reuters.com   time to read: +3 min
A U.S. Supreme Court ruling against President Joe Biden’s student loan forbearance erases as much as $20,000 in potential relief for graduates. Combined with the resumption of debt payments, borrowers will be feeling the pinch in their wallets and their confidence. The court said on Friday that a plan to wipe out swathes of student loans was unconstitutional, ending hopes of an easier financial future for some 43 million borrowers. If the Supreme Court had supported the relief, it also risked stoking inflation just as it slides to a healthier level. The proposal aimed to relieve $10,000 of student loans for individuals earning less than $125,000 annually, and an additional $10,000 for eligible borrowers who received Pell Grant subsidies.
Persons: Joe Biden’s, Mark Zandi, Taco, Pell Grant, Donald Trump, Jeffrey Goldfarb, Streisand Neto Organizations: Reuters, U.S, Supreme, White, Census Bureau, U.S . Federal Reserve, Bureau of Labor Statistics, Taco Bell, Yum Brands, Biden, Democratic, Congressional, Office, Former U.S, Thomson
A U.S. Supreme Court ruling against President Joe Biden’s student loan forbearance erases as much as $20,000 in potential relief for graduates. Combined with the resumption of debt payments, borrowers will be feeling the pinch in their wallets and their confidence. Had Biden’s policy covered $10,000 of their debt, the typical monthly payment would have shrunk by about a quarter. If the Supreme Court had supported the relief, it also risked stoking inflation just as it slides to a healthier level. CONTEXT NEWSThe U.S. Supreme Court on June 30 ruled 6-3 against President Joe Biden’s plan to forgive student loan debt for some 43 million borrowers.
Persons: Joe Biden’s, Mark Zandi, Taco, Pell Grant, Donald Trump, Jeffrey Goldfarb, Streisand Neto Organizations: Reuters, U.S, Supreme, White, Census Bureau, U.S . Federal Reserve, Bureau of Labor Statistics, Taco Bell, Yum Brands, Biden, Twitter, Democratic, Congressional, Office, Former U.S, Thomson
How to Pay Off Your Student Loans
  + stars: | 2023-06-28 | by ( Rebecca Safier | ) www.wsj.com   time to read: +13 min
Here’s how to pay off student loans in a way that works for your budget and goals. Look into specialized loan forgiveness programsWhile the Supreme Court hasn’t shared its ruling on Biden’s widespread forgiveness initiative yet, there are other options for loan discharge, such as Public Service Loan Forgiveness and Teacher Loan Forgiveness. You can pay off federal student loans early, as there’s no student loan prepayment penalty. If you want to retain access to federal protections, it wouldn’t make sense to refinance your federal student loans. In the end, there’s no single right way to pay off student loans faster.
Persons: Rebecca Safier, Biden’s, , Robert Farrington, you’re, you’ve, Michael Lux, , Farrington, Autopay, servicers, autopay, servicer Nelnet, hasn’t, Adam Minsky, You’ll, Mark Kantrowitz Organizations: Education Department, College Investor, millennials, Federal, Aid, Grad, Student Loan Sherpa, Student Aid, autopay, Peace Corps, Corinthian, Education Locations: , SavingforCollege.com
Olivia Fitzpatrick, 29, has $7,000 in student debt in Australia, but she's not too worried about it. Olivia Fitzpatrick, 29, has just over 10,000 Australian dollars, or about $6,790, in student debt — and even as a financial educator on social media, it's not a concern for her. If I started earning significantly more over the next year, I would consider paying off the debt just for the feeling of having no student debt and also more cash flow from working." She said she doesn't have any regrets about taking on student loans because it was a "great return on investment" for her. This is a dilemma American student-loan borrowers are all too familiar with.
Persons: Olivia Fitzpatrick, she's, , hasn't, it's, Fitzpatrick, Joe Biden's, Mehreen Organizations: Service, Higher, Higher Education Loan Program, Guardian, Greens Locations: Australia, Melbourne, America, New South Wales
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
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
Student-loan borrowers will resume payments in October, the Education Department confirmed. Borrowers are awaiting a Supreme Court decision on Biden's broad debt relief in the coming weeks. Per the documents, the department was preparing to resume interest accrual on borrowers' student loans in September, and they would not be hit with a bill until October. A Supreme Court decision could come on Friday or the next two Thursdays of June, and additional days could be added to the calendar. "Our concern is only heightened by the prospect of an unfavorable ruling in coming days framed by a conservative, right-wing majority of the Supreme Court.
Persons: , Joe Biden's, Biden, Ayanna Pressley, Ro Khanna, Trump, Derrick Johnson, Wisdom Cole Organizations: Education Department, Service, Politico, Biden, An Education Department, Democratic, Supreme Court, Massachusetts, Washington Post, NAACP, Youth and College Locations: California
As a result of the policy, the average borrower likely saved around $15,000 in student loan payments, Kantrowitz said. ″[T]he one-time student loan debt relief program was intended to avoid" that problem, he added. Yet consumer advocates say the troubles for student loan borrowers are far from over. "Borrowers are not ready to resume payments," said Persis Yu, deputy executive director at the Student Borrower Protection Center. To be able to afford his student loan payment in September, Berlet plans to cut back on how much food he buys.
Persons: Donald Trump, Mark Kantrowitz, Kantrowitz, James Kvaal, Joe Biden's, Mark, Kvaal, Kevin McCarthy, Biden, McCarthy, Persis Yu, Yu, they'd, Paul, Berlet, he'll, Brooks, didn't, wasn't, Paul Berlet Organizations: Twitter, Student, Protection, Kantrowitz, Education Department, Pennsylvania Higher Education Assistance Agency, Granite State Locations: U.S, Pennsylvania, Granite, Wilmington , Delaware
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