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☆ FAFSA is still having major issues and delaying financial aid decisions—how students and families can cope
▼ + stars: | 2024-04-05 | by ( Kamaron Mcnair | In Kamaronmcnair | ) www.cnbc.com time to read: +2 min

Numerous hiccups in the rollout of the updated Free Application for Federal Student Aid have upended this year's financial aid award season. By now, most of the problems with submitting the form have been resolved, but getting the FAFSA information from the ED's Federal Student Aid office to colleges has introduced another slew of issues. "Continually taking two steps forward and one giant step back is not a sustainable pathway toward getting financial aid offers out to students and families." Outside of those erroneous forms being reprocessed, FSA said as of April, schools should start receiving students' financial information within one to three business days of the student submitting their FAFSA. Still, some students may feel the pressure to commit to a school before they've seen all the financial aid offers available to them or skip the FAFSA — and potentially college — process altogether.

Persons: Justin Draeger, they've Organizations: Federal, Education, National College, Aid, Internal Revenue Service, IRS, National Association of Student Financial

☆ Student-loan borrowers in public service are facing a key change starting in May — and it'll mean delays in their debt cancellation progress
▼ + stars: | 2024-04-03 | by ( Ayelet Sheffey | ) www.businessinsider.com time to read: +4 min

Read previewSome key changes are on the way for thousands of federal student-loan borrowers in public service. President Joe Biden's Education Department recently posted new guidance on Federal Student Aid's website with updates to the Public Service Loan Forgiveness program. Once PSLF processing resumes in July, borrowers' loans will remain with their servicer, but the Education Department will fully manage the program. As a result, borrowers can view their PSLF payments directly on studentaid.gov, access "enhanced" services like status tracking for their applications, and see quicker processing times for PSLF. AdvertisementOn top of this transition, MOHELA is in the process of transitioning borrowers to a new servicing platform, which could mean up to 30-day delays in posting payments.

Persons: —, Joe Biden's, MOHELA, that'll, PSLF, Grant, Massachusetts Sen, Elizabeth Warren, Warren, Chuck Schumer, Sen, Bernie Sanders Organizations: Service, Joe Biden's Education Department, Federal, Public, Business, Teacher, College And Higher, Federal Student Aid, Education Department, PSLF, Protection Locations: Massachusetts

☆ Dartmouth and Vanderbilt expand financial aid awards in an effort to eliminate student loans
▼ + stars: | 2024-04-01 | by ( Jessica Dickler | ) www.cnbc.com time to read: +1 min

Amid arguably the worst year to apply for financial aid, some colleges are implementing new strategies to entice students wary of the high cost. Vanderbilt University announced it is expanding Opportunity Vanderbilt to include full-tuition scholarships to students of families with an annual income of $150,000 or less. Meanwhile, Dartmouth also said it is nearly doubling its current income threshold for a "zero parent contribution" for parents with an annual income of $125,000, up from $65,000. "As costs continue to escalate we think it's so important there is access," said Doug Christiansen, Vanderbilt's dean of admissions and financial aid. "I am concerned on a national level that we will have a portion that think they can't afford it," he said.

Persons: Dartmouth, Doug Christiansen, Christiansen Organizations: Vanderbilt University, Vanderbilt, Finance, Harvard, Federal Student Aid

☆ A dad explains why the college financial aid process has him worried he'll be 'scrambling to try to find money at the last minute' for his 2 daughters
▼ + stars: | 2024-03-31 | by ( Ayelet Sheffey | ) www.businessinsider.com time to read: +7 min

Antonio Scordo, 50, is struggling to navigate the college financial aid process for his two daughters. Having already sent his son through college, Scordo was familiar with the Free Application for Federal Student Aid, or FAFSA, process — but this year has brought a host of new challenges. "We also don't want to apply for not enough because then you're scrambling to try to find money at the last minute. According to Federal Student Aid, the ability to make corrections and updates will not become available until "the first half of April." To help pay for his son and one of his daughter's schools, he took out nearly $50,000 in parent PLUS loans, per documents reviewed by BI.

Persons: Antonio Scordo, —, Scordo, Joe Biden's, she's, she'll, Miguel Cardona, Cardona, they're Organizations: Service, Federal Student Aid, Joe Biden's Education Department, Business, BI, The Education Department, Politico, Microsoft, Education Department Locations: Scordo

Congress has until Friday at midnight to pass six major spending bills to avert a partial government shutdown. Six spending bills that cover roughly three-quarters of all federal discretionary spending are at stake:– Defense: Includes funding for nearly all military-related activities. – State, Foreign Operations and Related Programs: Includes funding for U.S. diplomatic activities, cultural exchanges, development and humanitarian assistance. As of Monday morning, appropriators had yet to release any of the six funding bills they’ll need to pass. The stalemate comes in the wake of Republicans killing the bipartisan Senate border deal last month.

Persons: appropriators, they’re Organizations: –, – Financial Services, General Government, Department of, Treasury, of Columbia, – Department of Homeland Security, Federal Emergency Management Agency, Coast Guard, Customs, Immigration Services, Labor, Health, Human Services, Education, Centers for Disease Control, Food and Drug Administration, Social Security, National Labor Relations Board, Senate, U.S . Capitol Police, of Congress, Foreign, House Republican, White House, Department of Homeland Security Locations: U.S, – State

☆ A millennial got $76,000 in student debt wiped out last year. Now he's learned it was a mistake and has to dig into his retirement savings to afford payments again.
▼ + stars: | 2024-03-17 | by ( Ayelet Sheffey | ) www.businessinsider.com time to read: +5 min

"So I mean, we upped our retirement contributions, put more in our savings account because we're saving to buy an apartment." According to David's account, he's expected to resume payments in April, and while he's not yet sure what the amount will be, he's already having to cut back on spending and dig into his retirement savings to make sure he can afford an additional bill. Since federal student-loan payments resumed in October after an over three-year pause, many borrowers have been struggling to get help from their servicers due to strained resources at Federal Student Aid, the office that oversees repayment. AdvertisementAs David waits for clarity, he's evaluating how much money he can withdraw from his savings account to face his student-loan payments once again. "I'm on the fortunate end of this in that I do actually have a savings account," David said.

Persons: David, David —, —, MOHELA, he's, We've, we're, Anne, hasn't, I'm Organizations: Service, Business, BI, Public, Education Department, Federal Student Aid, Republican Locations: PSLF, MOHELA

☆ Inside the Blunders That Plunged the College Admission Season Into Disarray
▼ + stars: | 2024-03-13 | by ( Erica L. Green | Zach Montague | ) www.nytimes.com time to read: +1 min

There were just days left to process a batch of federal financial aid applications when Education Department officials made a fateful discovery: 70,000 emails from students all over the country, containing reams of essential data. They were sitting in an inbox, untouched. The students’ futures depended on it. “It needs to get untangled,” Mr. Cordray told his staff members on Thursday, according to recordings of two back-to-back meetings that The New York Times obtained. Three years ago, Congress ordered the Education Department to revamp the new form to make it easier and more accessible.

Persons: Richard Cordray, Mr, Cordray, ”, “ Organizations: Education Department, New York Times, Federal Student Aid

☆ Student-loan borrowers could see an easier repayment process through Biden's budget request — along with efforts to make college cheaper
▼ + stars: | 2024-03-11 | by ( Ayelet Sheffey | ) www.businessinsider.com time to read: +4 min

It includes a $3.1 billion funding increase for the Education Department to help student-loan borrowers. AdvertisementPresident Joe Biden's budget wish list is out — and it includes boosted funding to help student-loan borrowers as they continue to navigate the return to repayment. Biden's budget request released on Monday outlines what his administration is seeking to prioritize in the final year of his first term. Additionally, the budget request proposes getting rid of student-loan origination fees, or fees a lender charges for processing a borrower's loan. However, many of the initiatives in Biden's budget request would require congressional approval, and with Republicans holding a majority in the House, it's unlikely it would pass in its current form.

Persons: —, Joe Biden's, Education James Kvaal, Pell Grant, Biden Organizations: Education Department, Service, Child, Social Security, Federal, Aid, Federal Student Aid, Education, College Fund, Republicans, Business, Management

☆ President Biden's new budget wants to bring back the child tax credit and make sure Americans don't face Social Security cuts — all while taxing billionaires and big companies more
▼ + stars: | 2024-03-11 | by ( Juliana Kaplan | Ayelet Sheffey | ) www.businessinsider.com time to read: +5 min

The budget seeks to restore the expanded Child Tax Credit and keep Social Security benefits intact. The budget also proposes a tax increase on billionaires, companies, and firms giving executives big paydays. The proposal comes after a tax bill that would partially expand the Child Tax Credit currently lingers untouched in Congress. Advertisement"It cuts costs for families with children and American workers and lowers childcare costs for hardworking families," Young continued. Would a restored child tax credit or maintained Social Security benefits impact your life?

Persons: Joe Biden, —, White, Shalanda Young, Young, Biden Organizations: Tax, Social, Service, American, Management, Social Security, Federal, Aid, Republican, Republicans, Democratic, —, GOP, Security

President Joe Biden recently announced that he was canceling federal student loans for nearly 153,000 borrowers enrolled in the plan, known as the SAVE plan. For Lauran Michael and her husband, the SAVE plan has reduced student loan payments by half. If you are interested in applying for the SAVE plan, here's what you need to know:WHAT IS AN INCOME-DRIVEN REPAYMENT PLAN? Borrowers can apply to the SAVE plan using the Income-Driven Repayment Plan request through the Education Department’s website. If you’d like to repay your federal student loans under an income-driven plan, the first step is to fill out an application through the Federal Student Aid website.

Persons: Joe Biden, Michael, they've, ”, you’ve, they’re, Biden’s, Charles Schwab Organizations: SAVE, U.S . Education Department, WHO, PLAN, Program, Education, Education Department, Public, Defense, Federal, Aid, Associated Press, Charles, Charles Schwab Foundation, Inc, AP Locations: U.S, Raleigh , North Carolina

☆ Biden is still running on a promise to get student-loan forgiveness to 'as many borrowers as possible.' Here's where his debt relief efforts stand.
▼ + stars: | 2024-03-08 | by ( Ayelet Sheffey | ) www.businessinsider.com time to read: +7 min

When Biden was first running for office, he campaigned on canceling $10,000 in student debt per borrower, along with reforming repayment programs like Public Service Loan Forgiveness. AdvertisementThe Education Department is undergoing a process to get relief to borrowers using a different law, but it will take time to reach borrowers. Targeted student-loan forgivenessWhile the Supreme Court struck down Biden's first try at broad student-loan forgiveness, he has still enacted smaller amounts of relief to borrowers through various reforms. Additionally, the Education Department has announced debt cancellation for borrowers defrauded by the schools they attended, including the major for-profit chains ITT Technical Institute and Corinthian Colleges. In February, the department announced $1.2 billion in debt relief for 153,000 borrowers, the first group to benefit from that provision.

Persons: —, Joe Biden, Biden, Clare McCann, Arnold Ventures —, McCann, Biden's, Donald Trump Organizations: Service, Public, Biden, Business, Department, Arnold Ventures, Education Department, ITT Technical Institute, Corinthian Colleges, Education, Higher Locations: PSLF, deferment

☆ Student-loan borrowers will start to see 'improvements' to the repayment process starting this month
▼ + stars: | 2024-03-06 | by ( Ayelet Sheffey | ) www.businessinsider.com time to read: +3 min

Millions of student-loan borrowers might soon see improvements to the platforms they use to pay off their debt. Federal Student Aid also posted an announcement on its website with further details on the platform changes. This is likely an effort to prevent scams by making it clear to borrowers that the servicer works with the federal government. It'll ensure that borrowers can detect whether information is coming from an Education Department website to protect them from scams and reduce disruptions across servicing platforms. Advertisement"You will see more improvements when managing and repaying your loans in the coming year," the email to borrowers said.

Persons: Joe Biden's, MOHELA Organizations: Service, Joe Biden's Education Department, Business, Federal, Aid, Education Department

☆ A mom who's stuck with the bill for her ex-husband's student loans is struggling to pay the $365,000 balance and help her kids at the same time
▼ + stars: | 2024-03-04 | by ( Ayelet Sheffey | ) www.businessinsider.com time to read: +5 min

But more than a decade later, their student loans are preventing them from fully separating. So my current husband has all my kids' student loans in his name," Rowan told BI. AdvertisementShe also can't get a new credit card, and she said that her parents are concerned her inheritance will be garnished because of her student loans. BI recently spoke to Chrystal Copeland, a 46-year-old mom also seeking to get her loan balance separated from her ex-husband. "The only thing that is still holding me in this cycle of abuse is these student loans," Copeland said.

Persons: Shannon Rowan, Rowan, it's, Sen, Mark Warner, David Price, —, Joe Biden, It's, Chrystal Copeland, Copeland, she's Organizations: Service, Business, BI, Public, Rowan

☆ Biden Administration lists 17 factors that could qualify student loan borrowers for relief due to financial hardship
▼ + stars: | 2024-02-29 | by ( Kamaron Mcnair | In Kamaronmcnair | ) www.cnbc.com time to read: +4 min

President Joe Biden and his administration are continuing their efforts to provide student debt relief to as many borrowers as possible. At this point in the process — which involves a number of discussions with various stakeholders including borrowers, advocacy groups, lawmakers and more — the rulemaking committee has identified five groups of borrowers who should be considered for debt relief. It struggled to come to an agreement on how to define hardship that would render a borrower eligible for relief. As a result, the administration extended negotiation talks and added sessions in February to address the question of hardship. You may notice there aren't explicit thresholds listed for things like "household income" or when considering debt to income ratios.

Persons: Joe Biden, haven't, Pell Grant Organizations: Higher, Federal, Federal Student, Department of Education, CNBC

Photos You Should See View All 33 ImagesSchools won't get the information they need to award financial aid until next month, forcing them to adapt. Just this past week, Virginia Tech, for example, said it had moved its admissions deposit deadline for first-year college students to May 15. More than 17 million students use the FAFSA every year to receive financial aid for their college education. Rachel Reniva of Dothan, Alabama, said the financial aid decision will affect not only her son’s future but also her entire family’s. Although Jaramillo lives in Toronto, he is a U.S. citizen and thus eligible for financial aid.

Persons: they’ll, ”, Jenny Nicholas of Keene, “, ” Juan Espinoza, Agata James, ” James ’, James, Miguel Cardona, Rachel Reniva, Jesus Noyola, hasn’t, It’s, Noyola, Travis Hill, Lorenzo Jaramillo, Jaramillo, Helen Faith, —, Charles Schwab Organizations: Federal Student Aid, The Education Department, Virginia Tech, New, Queens, Education Department, Rensselaer Polytechnic Institute, Social Security, Dallas, Social, Financial, University of Wisconsin, Associated Press, Charles, Charles Schwab Foundation, Inc, AP Locations: Jenny Nicholas of Keene , New Hampshire, New York, Dothan , Alabama, Troy , New York, Texas, Toronto, U.S, Madison

☆ A mom with $50,000 in student debt 'can't break free' from her ex-husband because she's still stuck paying off his loan balance
▼ + stars: | 2024-02-19 | by ( Ayelet Sheffey | ) www.businessinsider.com time to read: +6 min

Chrystal Copeland, 46, is stuck paying off her ex-husband's student loans. While a law passed to allow the separation of spousal balances, it'll take time to implement. But their student loans are keeping them together. "The only thing that is still holding me in this cycle of abuse is these student loans. She now has about $50,000 in student debt, according to documents reviewed by Business Insider, and she's facing payments of about $500 a month.

Persons: Chrystal Copeland, Copeland, —, that's, I'm, Sen, Mark Warner, David Price, Joe Biden, she's, she'll, hasn't, I've Organizations: Service, Business, Education Department, Federal, Public, Aid, Federal Student Aid, Group Locations: —

☆ Some Good FAFSA News: There’s a Loophole for Grandparents
▼ + stars: | 2024-02-17 | by ( Ron Lieber | ) www.nytimes.com time to read: +1 min

It is a miserable year to be applying for financial aid. Millions of families probably won’t get a final price tag for college until at least April, because of a series of Education Department delays in rolling out the new FAFSA financial aid form. But if you’re applying for aid and have grandparents who want to help, you may be in luck. But now, thanks to a 2020 law that went into effect this year, those questions about money and income are gone. That means that at most schools, help from a grandparent will no longer count against you.

Persons: Pell Grant Organizations: Education Department, Federal Student Aid

☆ Amid the many problems with the new FAFSA, 'every student' should appeal for more financial aid, one expert says
▼ + stars: | 2024-02-14 | by ( Jessica Dickler | ) www.cnbc.com time to read: +1 min

Above all else, the new Free Application for Federal Student Aid was designed to improve college access. As of the last tally, nearly 4 million students have submitted the 2024-25 FAFSA form so far. That’s a fraction of the 17 million students who use the FAFSA form in ordinary years, according to the U.S. Department of Education. For most students and their families, the amount of financial aid offered and the breakdown between grants, scholarships, work-study opportunities and student loans are key to covering the tab. “Every student should anticipate doing an appeal this year,” said Bethany Hubert, a financial aid specialist with Going Merry by Earnest.

Persons: ”, Bethany Hubert, Earnest Organizations: Federal Student, U.S . Department of Education, Finance, Biden, College Board

☆ Some student-loan borrowers have just 2 months left to benefit from temporary debt relief. Here's what they need to do.
▼ + stars: | 2024-02-14 | by ( Ayelet Sheffey | ) www.businessinsider.com time to read: +3 min

Time is running out for some student-loan borrowers to benefit from a limited-time debt cancellation reform. AdvertisementBorrowers who will receive the account adjustment automatically must be in the federal direct loan program or the Federal Family Education Loan program with loans held by the Education Department. Other borrowers who have loans in the FFEL program that are commercially held would need to consolidate into the direct loan program to receive relief. AdvertisementAt the same time, the Education Department is in the process of crafting its second attempt at more expansive relief for borrowers. On February 22 and 23, it will meet with stakeholders for the fourth time to negotiate the text of debt relief under the Higher Education Act of 1965.

Persons: Joe Biden's, Biden, Biden's Organizations: Service, Joe Biden's Education Department, Public, Business, Aid, Family Education, Education Department, Higher

☆ The new FAFSA rollout has faced several obstacles and delays—what students and families can do
▼ + stars: | 2024-02-08 | by ( Kamaron Mcnair | In Kamaronmcnair | ) www.cnbc.com time to read: +1 min

Since its rollout at the end of December, the 2024-25 Free Application for Federal Student Aid has run into a number of speed bumps. All of which has culminated in delayed financial aid packages for current and incoming college students. To help alleviate some of the issues, ED announced this week it will deploy a "FAFSA College Support Strategy." The department will send resources, including funding and personnel, to college campuses to support financial aid administrators processing incoming FAFSA forms. "Students and families should keep in mind that, although the current circumstances are certainly stressful, everyone applying for financial aid is in the same situation."

Persons: they're, they'll, Jill Desjean Organizations: Federal, Aid, Department of Education, The Department, National Association of Student Financial, CNBC

☆ Some Colleges Are Pivoting as FAFSA Delays Drag On
▼ + stars: | 2024-02-08 | by ( Ron Lieber | ) www.nytimes.com time to read: +1 min

At least 25 schools will no longer require commitments by May 1, since they may not be able to send admitted students financial aid offers until April. A few schools have created new aid forms or processes on the fly to award their own grants and scholarships. In 2020, Congress passed a law that required enormous changes to the processes used to award federal aid. The first was to the Free Application for Federal Student Aid, or FAFSA, form to make it easier to complete. Another was to the formula that doles out federal aid, which was made in part to offer more help to lower-income students.

Organizations: University of California, California State University, Federal Student Aid

☆ FAFSA Delays Make Affording College Even Harder - The New York Times
▼ + stars: | 2024-02-08 | by ( Justin Draeger | Ted Mitchell | ) www.nytimes.com time to read: +2 min

Each year, more than 17 million students complete the Free Application for Federal Student Aid, or FAFSA, hoping to secure the financial support they need to afford college. But this year, operational glitches and repeated delays in the U.S. Department of Education’s “Better FAFSA” rollout threaten to harm the very students and families that financial aid is intended to help. Despite promises of an easier, more straightforward application process, students and families so far have been met with glitches and delays, and still today, there are entire groups of students blocked from even completing the form. Students may not receive financial aid offers until April and are typically expected to make a decision about where to attend college by May 1. Others may delay enrolling in college for another year, once the aid application process is running more smoothly.

Organizations: Federal Student Aid, U.S . Department

☆ Student-loan borrowers who have faced repayment errors should get a 'personalized' explanation on how their account is being corrected — but it'll take time, the Education Department says
▼ + stars: | 2024-02-07 | by ( Ayelet Sheffey | ) www.businessinsider.com time to read: +3 min

Student-loan borrowers have encountered a range of repayment issues, and any mistakes in their accounts will be fixed — but it'll take some time. The Education Department posted guidance for borrowers on what to expect if they found mistakes in their accounts. "It might take several weeks for your loan servicer to send this communication and to make corrections to your account," the guidance said. "You might receive an updated billing statement before you receive the above communication about corrections. According to a notice reviewed by BI in November, student-loan company MOHELA told some borrowers that it was "in the process of updating your account.

Persons: servicers, MOHELA Organizations: The Education Department, Public, BI, Federal, Department

☆ Amid rocky FAFSA rollout, Education Department looks to smooth the so-far bumpy debut — 'too little, too late,' expert says
▼ + stars: | 2024-02-06 | by ( Jessica Dickler | ) www.cnbc.com time to read: +1 min

The U.S. Department of Education announced Monday it is introducing a "FAFSA College Support Strategy" with additional personnel, funding, resources and technology to help colleges process the new Free Application for Federal Student Aid forms after the rollout was repeatedly complicated by a number of setbacks. "We are determined to get this right," U.S. Secretary of Education Miguel Cardona said in a statement. However, the consensus among college financial aid administrators seems to be that it is "too little, too late," said higher education expert Mark Kantrowitz. It will also offer a "concierge service" to answer questions from colleges about the new form and help schools drive FAFSA completion so students can get their aid packages in time. Last week, the Department of Education said colleges won't receive FAFSA applicant information until early March, instead of late January as initially estimated, potentially delaying financial aid award letters until April or later.

Persons: Education Miguel Cardona, Mark Kantrowitz, Biden Organizations: U.S . Department of Education, Federal, Education, Finance, Department of Education

☆ How Supreme Court affirmative action decision is impacting college applicants. 'The barriers are already so high,' one legal expert says
▼ + stars: | 2024-02-05 | by ( Jessica Dickler | ) www.cnbc.com time to read: +5 min

The percentage of first-year applicants identifying as Black or Latino jumped 12% and 13%, respectively, year over year, outpacing other groups. At the same time, colleges are seeing an increase in first-generation applicants and international students, the Common App found. The financial aid factorFor many families, the price tag is the most significant sticking point when it comes to college access. Black households also tend to borrow more than households to finance a higher education. And because of historic racial and economic inequities, Black student loan borrowers struggle to repay their debt more than their white peers.

Persons: it's, Cara McClellan, Biden, Bryan Cook, Cook, Elise Colin, Colin, McClellan, Wells Organizations: Racial, Civil Justice Clinic, University of Pennsylvania Carey Law School, Finance, Urban Institute, Urban, University of California, University of Michigan, Federal Student Aid Locations: Wells Fargo

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