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House Republicans are proposing cutting funding for Federal Student Aid by $265 million. Last week, Republicans on the House Appropriations Committee released a series of bills for funding federal agencies through fiscal year 2024. "Right now, House Republicans are pursuing an appropriations bill that cuts $22.5 BILLION from education," Education Secretary Miguel Cardona wrote on Twitter. Cutting funding could pose significant challenges to borrowers, along with the operations of Federal Student Aid. Some Democratic lawmakers have also expressed concerns about a lack of funding for Federal Student Aid.
Persons: it's, Joe Biden's, Biden, Miguel Cardona, Jared Bass, Federal Student Aid . Massachusetts Sen, Elizabeth Warren, Tammy Baldwin, Shelley Moore Capito Organizations: Republicans, Federal, Aid, Service, Republican, Labor, Health, Human Services, Education, House Republicans, Twitter, Federal Student Aid, Public, Center, American Progress, Democratic, Federal Student Aid ., Department of Education, Education Department Locations: Wall, Silicon, Federal Student Aid . Massachusetts
Sen. Elizabeth Warren wants Biden to consider actions to help student-loan borrowers who miss payments. Warren's suggestions include getting rid of student debt for borrowers in long-term default. To help those in default, the department has already announced a "Fresh Start" program that will restore 7.5 million borrowers behind on payments to good standing once payments resume. Still, as Warren wrote, borrowers might still "fall through the cracks" once payments resume — and wants Biden to reform the process for defaulted borrowers. "I want to reassure you — the Biden-Harris team is not done fighting for student loan borrowers or for working families," Cardona recently wrote on Twitter.
Persons: Sen, Elizabeth Warren, Biden, Massachusetts Sen, Joe Biden, — Warren, Warren, Secretary Miguel Cardona, Biden's, Miguel Cardona, Harris, Cardona Organizations: Service, Education Department, Department, Secretary, Higher, White, Biden, Twitter Locations: Wall, Silicon, Massachusetts
Borrowers will be eligible for forgiveness if they have made either 20 or 25 years of monthly IDR payments, the department said. The IDR program caps payment requirements for lower-income borrowers and forgives their remaining balance after a set number of years. Biden has said he will pursue new measures to provide student loan relief to Americans after the Supreme Court blocked his plan to cancel hundreds of billions of dollars in debt. The Education Department has launched a regulatory "rulemaking" process to pursue his $430 billion loan relief plan. In a statement, Vice President Kamala Harris said the administration "will continue to fight to make sure Americans can access high-quality postsecondary education without taking on the burden of unmanageable student loan debt."
Persons: Joe Biden's, Read, IDR, Education Miguel Cardona, Biden, Kamala Harris, Juby Babu, Rami Ayyub, Christina Fincher, Chizu Nomiyama, Frances Kerry Organizations: Education Department, Education, Thomson Locations: Washington , U.S, WASHINGTON, Bengaluru, Washington
President Joe Biden announces new actions on June 30, 2023 to protect borrowers after the Supreme Court struck down his student loan forgiveness plan. Biden had hoped to move quickly canceling people's student debt, promising people the relief within six weeks of them completing their paperwork. Unlike Biden's first attempt to forgive student debt quickly through an executive order, this time he's turning to the rulemaking process. It's unlikely that Biden's Plan B for student loan forgiveness will be successful, Kantrowitz said. He expects the president's second attempt at forgiving student debt to be met by many of the same lawsuits as the first.
Persons: Joe Biden, Chip Somodevilla, overreach, John Roberts, Roberts, Biden, Lyndon B, Johnson, Chuck Schumer, didn't Biden, Herrine, Trump, Biden's, Kantrowitz, Luke Herrine Organizations: U.S . Department of Education, Republican, Supreme, GOP, South Carolina —, Job, Network Foundation, Biden, . Nebraska, Education Department, Higher, University of Alabama Locations: delinquencies, — Nebraska , Missouri , Arkansas , Iowa , Kansas, South Carolina, .
Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailStudent loan relief plan struck down: What's next for borrowers? Sharon Epperson, senior personal finance correspondent, reports how student loan borrowers can prepare for payments to kick back in after the Supreme Court struck down President Biden's debt forgiveness plan.
Persons: What's, Sharon Epperson
People line up outside of the Supreme Court in Washington, D.C., on June 30, 2023. Kent Nishimura | Los Angeles Times | Getty ImagesMany student loan borrowers face risk factors that suggest they could struggle covering their bills, especially after the Supreme Court struck down President Biden's federal student loan forgiveness proposal and repayment will resume in October. "I wasn't necessarily surprised," said Stedman, who graduated from college in 2013 with just under $40,000 in student loan debt. For his part, Stedman said he's found his student loan debt to be a "challenge" since graduation. 3 things to consider as loan payments resume
Persons: Kent Nishimura, Colton Stedman, Biden, Stedman, , Jack Wallace, Yrefy, he's, It's, Wallace Organizations: Washington , D.C, Los Angeles Times, Getty, Consumer Financial, Bureau, South Saint, Finance, Governors, Federal Reserve System, College Board Locations: Washington ,, South, South Saint Paul , Minnesota, U.S, Yrefy
Chief Justice John Roberts voted with the liberals on the Supreme Court in key cases this term. Hardline conservatives have soured on the chief justice for his opinions siding with the Court's liberal justices in recent years. "Roberts' is the one whose name will be attached to this — it is the Roberts Court. The Times found in this term, the chief justice voted less often with the conservative majority and voted with liberal Justice Elena Kagan 14% more than the last term. "And I think Roberts perhaps has more of a concern with that kind of perspective because he's in the Court's center chair, because his name is attached to it, because it's his legacy."
Persons: John Roberts, SCOTUS, Roberts, , Roberts —, George W, Bush, William Rehnquist —, Justin Crowe, Crowe, I'm, Clarence Thomas, Samuel Alito, hasn't, Elena Kagan Organizations: Service, GOP, Williams University, Washington Post, The New York Times, Times
But I don’t want to discuss Roberts’s majority opinion as much as I do Justice Elena Kagan’s dissent. Kagan wrote something unusual. “From the first page to the last, today’s opinion departs from the demands of judicial restraint,” Kagan wrote. To say that the Supreme Court can violate the Constitution is to reject the idea that the court is somehow outside the constitutional system. For Congress, especially, to exercise its authority to discipline the court when it oversteps its bounds.
Persons: Elena Kagan’s, Kagan, ” Kagan, ,
Thwarted by the conservative-leaning court, Biden told reporters that his administration would pursue student loan relief through a different avenue, the Higher Education Act. In a 6-3 decision earlier on Friday, the Supreme Court blocked Biden's plan to cancel $430 billion in student loan debt. "I believe the court's decision to strike down my student debt relief program was a mistake, was wrong. About 53% of Americans supported Biden's original student loan forgiveness program, while 81% of Democrats did so, a Reuters/Ipsos poll showed this year. "Americans saw right through this desperate vote grab, and we are thankful that the Supreme Court did as well."
Persons: Joe Biden, Biden, I'm, Leah Millis, Elizabeth Warren, Democrat Alexandria Ocasio, Cortez, Miguel Cardona, , Ronna McDaniel, Steve Holland, Jeff Mason, Rami Ayyub, Andrea Shalal, Trevor Hunnicutt, Timothy Ahmann, Jonathan Oatis, Matthew Lewis Organizations: U.S, Supreme, Higher, The Education Department, Republicans, Democratic, Education Department, Progressive, White, REUTERS, Twitter, Democrat, Reuters, Republican, Education, Republican National Committee, Thomson Locations: Washington , U.S, Washington
Biden told reporters at the White House that his administration would pursue student loan relief through the Higher Education Act. In the 6-3 decision earlier Friday, the Supreme Court blocked Biden's plan to cancel $430 billion in student loan debt. Biden said he would find another way to make good on his promises to help people struggling with student loan debt. The White House made clear it would be putting blame on Republicans for stymieing student-loan relief efforts. “Biden's student loan bailout unfairly punished Americans who already paid off their loans, saved for college, or made a different career choice," Republican National Committee (RNC) Chairwoman Ronna McDaniel said in a statement.
Persons: Joe Biden, Read, Biden, Elizabeth Warren, they've, Warren, Democrat Alexandria Ocasio, Cortez, , Ronna McDaniel, Steve Holland, Jeff Mason, Rami Ayyub, Andrea Shalal, Timothy Ahmann, Jonathan Oatis, Matthew Lewis Organizations: U.S, Harvard University, University of North, White, Supreme, Higher, Republicans, Democratic, Progressive, Twitter, Democrat, Republican, Republican National Committee, Thomson Locations: U.S ., University of North Carolina, Washington , U.S, WASHINGTON, Washington
Economists polled by Reuters had forecast consumer spending, which accounts for more than two-thirds of U.S. economic activity, rising 0.2%. When adjusted for inflation, consumer spending was unchanged. Data for April was revised lower to show the so-called real consumer spending rising only 0.2% instead of 0.5% as previously reported. With consumer spending softening, inflation subsided. The so-called core PCE price index increased 4.6% on a year-on-year basis in May after advancing 4.7% in April.
Persons: Kevork, Sal Guatieri, Joe Biden's, Mike Graziano, Morgan Stanley, Dana Peterson, Lucia Mutikani, Jonathan Oatis Organizations: Walmart, REUTERS, Commerce, Reserve, BMO Capital Markets, Reuters, Services outlays, Treasury, RSM, Fed, Conference Board, Thomson Locations: Los Angeles, WASHINGTON, U.S, Toronto, Outlays, New York, Washington
WASHINGTON — The White House in a statement to NBC News said it strongly disagrees with the Supreme Court's ruling against federal student loan relief but still intends to assist borrowers. The Supreme Court ruled Friday in a 6-3 decision against President Joe Biden's plan to cancel up to $20,000 in student loan debt per borrower. Biden will deliver remarks Friday and "announce new actions to protect student loan borrowers." Asked if it was a "rogue court," Biden told reporters "it's not a normal court." Speaking on MSNBC's "Deadline: White House" later Thursday, Biden said the current Supreme Court has "done more to unravel basic rights and basic decisions than any court in recent history."
Persons: Joe Biden, WASHINGTON —, Joe Biden's, Biden, it's, hasn't Organizations: White, WASHINGTON, NBC News Locations: Washington ,
After describing Friday's Supreme Court ruling against student debt relief as "unthinkable," President Joe Biden announced he'd find a new way to ease the burden of student loan payments. Borrowers left reeling after Friday's Supreme Court decisionWhile Biden said the "fight is not over" in his press conference, student borrowers who spoke to CNBC Make It were disheartened about the Supreme Court ruling earlier in the day. Stevens has $40,000 in student loan debt after graduating with a bachelor's degree in secondary education from Northern Arizona University in 2015. She would have qualified for $20,000 in student debt relief if the Biden administration's executive action had been allowed to proceed. If you plan on running for president, you're going to have to have a plan for student loan debt forgiveness.
Persons: Joe Biden, Education Secretary Miguel Cardona, he'd, Biden, Shayna Stevens, Stevens Organizations: Education Secretary, White House, Higher, Higher Education, of Education, CNBC, Arizona Students ' Association, Northern Arizona University, Biden, Arizona Students, Association Locations: Washington , DC
The Supreme Court struck down Biden's student loan forgiveness plan. Student loan payments will likely resume in October. For the justices behind the decision, the cost of an undergraduate degree was much cheaper when they were in school. According to EDI, there was a 2,807% increase in the average student loan debt at graduation between 1970 and 2021 before adjusting for inflation. Student loan borrowers gathered at the Supreme Court today to tell the court that student loan relief is legal on January 2, 2023.
Persons: , Joe Biden's, Biden, Clarence Thomas, Wally McNamee, Samuel Alito, Sonia Sotomayor, Elena Kagan, John Roberts, Ketanji Brown Jackson, Roberts, Jackson, Brett Kavanaugh, Neil Gorsuch, Amy Coney Barrett, Larry French, Thomas, Gorsuch Organizations: Service, Republicans, White, Education Data Initiative, The College of, Princeton University, Harvard, Yale, Columbia University, Rhodes College, Associated Press, AP
WASHINGTON, June 30 (Reuters) - President Joe Biden plans to announce new actions on Friday to protect student loan borrowers following a U.S. Supreme Court ruling that blocked his plan to cancel $430 billion in student loan debt, a White House source said. "The president will make clear he’s not done fighting yet, and will announce new actions to protect student loan borrowers," said the source, who spoke on condition of anonymity. In a 6-3 decision on Friday, the Supreme Court blocked Biden's plan to cancel $430 billion in student loan debt. Republicans argued that Biden's initial student loan relief plan was unconstitutional and unfair. "Americans saw right through this desperate vote grab, and we are thankful that the Supreme Court did as well."
Persons: Joe Biden, Biden, Elizabeth Warren, they've, stymieing, We’ll, , Ronna McDaniel, Steve Holland, Jeff Mason, Rami Ayyub, Jonathan Oatis Organizations: U.S, Supreme, Republicans, Democratic, Progressive, Twitter, Republican National Committee, Thomson
Student debt relief activists stand in front of the U.S. Supreme Court on June 30, 2023 in Washington, DC. (Photo by Kevin Dietsch/Getty Images)The Supreme Court on Friday rules against President Joe Biden's student loan forgiveness plan, prohibiting up to $20,000 in loan relief per borrower from proceeding. The plan, first announced in August 2022, would have forgiven $10,000 for all federal student loan borrowers and $20,000 for Pell Grant recipients who earn less than $125,000 a year ($250,000 for married couples). The Biden administration has also recently beefed up existing programs, making it easier to qualify for student loan relief. Public Service Loan Forgiveness (PSLF) has become easier for federal borrowers to obtain under the Biden administration.
Persons: Kevin Dietsch, Joe Biden's, Biden, Sonia Sotomayor, Ketanji Brown Jackson, Elena Kagan, Pell Grant, servicers Organizations: U.S, Supreme, Higher Education, Department of Education, Federal, Aid Locations: Washington ,
PoliticsSCOTUS decision on student loans 'a mistake' -BidenPostedPresident Joe Biden on Friday (June 30) condemned a U.S. Supreme Court ruling that blocked his plan to cancel $430 billion in student loan debt and announced new actions to provide student loan relief in its wake.
Persons: SCOTUS, Biden, Joe Biden Organizations: U.S, Supreme
Republican leaders and presidential candidates filed in to applaud Friday's Supreme Court decision striking down President Joe Biden's student loan relief program. Sen. Tim Scott, R-S.C., another presidential contender, called the loan forgiveness plan an "illegal and immoral" bid to "transfer student debt to taxpayers." Meyer noted, however, that she doesn't expect the ruling will mark an end to the efforts to forgive student loan debt. Other Republicans have put forward alternative plans for addressing the country's burgeoning student loan debt. Canceling student debt is a popular idea: Polls have shown that most registered voters support at least some form of loan forgiveness.
Persons: Mike Pence, Friday's, Joe Biden's, today's, Donald Trump, Sen, Tim Scott, Scott, Katharine Meyer, Meyer, Biden, Pence, Ron DeSantis, Trump, DeSantis Organizations: United, Republican, White, Trump, Biden, Brookings Institution, Republican National Committee, The Washington Post, Florida Gov, GOP, Senate Republicans Locations: United States, Ankeny , Iowa
Biden's plan would have eliminated her remaining student debt balance. KeyBanc's Thomas said the student loan payment pause was yet another pandemic tail wind for retailers. Estimates vary on how much student loan borrowers will pay each month. Kantrowitz said there is little data on how Americans used the money that they did not spend on student debt. He said the student loan changes are modest compared with the pinch that people feel from inflation or the dwindling of pandemic-strengthened savings accounts.
Persons: Brent Lewis, Lenèe Gill, Pell, Gill, KeyBanc's Thomas, Mark Kantrowitz, Kantrowitz, it's, Brett House, Mario Anzuoni Organizations: Old Navy, Denver, Getty, Louisiana State University, Walmart, Nutrition, Bank of America Institute, Columbia, Maxx, TJX Cos Inc Locations: Denver , Colorado, Pasadena , California
Cities and regions left behind by bygone industries can now apply for funding to revitalize jobs. The Biden administration is opening up applications for its Recompete Pilot Program. Under that program, a handful of "distressed communities" can receive at least $20 million. It's called the Recompete Pilot Program, and it's meant to pump funds into economically distressed areas. According to research from Timothy J. Bartik for the Brookings Institute, nearly a sixth of the country's population lives in distressed communities.
Persons: Biden, , It's, Biden's, Gina Raimondo, Timothy J, Bartik, Derek Kilmer, it's, Kilmer, what's, Alejandra Castillo Organizations: Service, Economic Development Administration, Brookings Institute, White, Commerce, Economic Development Locations: Scranton , Pennsylvania, Washington
Student-loan payments are set to resume in October. Bank of America and Morgan Stanley highlighted the strain borrowers will face. 34% of surveyed borrowers don't think they can afford the payments at all, Morgan Stanley said. Morgan Stanley survey on student-loan payments. Morgan StanleyAnd a Monday note from Morgan Stanley researchers said that just 29% of federal student-loan borrowers are confident they'll be able to afford payments without adjusting spending in other areas.
Persons: Morgan Stanley, , Joe Biden's, Donald Trump, Biden, Ethan Harris, Harris, Marshall Steinbaum, Miguel Cardona, Cardona, Ro Khanna Organizations: Bank of America, Service, Joe Biden's Education Department, " Bank of, Family Institute, University of Utah, Senate, Twitter Locations: California
Economic policies sacrifice poor Americans
  + stars: | 2023-06-02 | by ( Lauren Silva Laughlin | ) www.reuters.com   time to read: +3 min
NEW YORK, June 2 (Reuters Breakingviews) - Dollar General (DG.N), the ultra-low-cost retailer with 19,000 stores reaching 75% of the U.S. population, has never been a comfortable reflection of the American consumer. That underscores troubling consequences of current U.S. economic policy: the poor are being sacrificed. Over the past two decades, dollar stores have upended how the cross section of the United States shops. In smaller towns, Dollar General and competitors including Dollar Tree (DLTR.O) offer cheap and accessible groceries. Reuters GraphicsIn the past week, U.S. Congress has continued to roll back policies that would help Americans with less to go around.
Persons: Jeffery Owen, Lululemon, Nordstrom, Ralph Lauren’s, Joe Biden’s, Lululemon Athletica’s, Erik Nordstrom, Jennifer Saba, Sharon Lam Organizations: YORK, Reuters, Dollar, Walmart, Shoppers, Reuters Graphics, Congress, Thomson Locations: United States
Meanwhile, borrowers are still awaiting a Supreme Court decision, which will determine whether the student loan forgiveness program can take effect. In February, the Supreme Court heard two legal challenges to Biden’s student loan forgiveness program. Biden’s other student debt policiesBiden has extended the pause on federal student loan payments several times. The Biden administration has tied the restart date to the litigation over the separate student loan forgiveness program. New rules set to take effect in July could broaden eligibility for the Public Service Loan Forgiveness program, which is aimed at helping government and nonprofit workers.
Persons: Joe Biden’s, Democratic Sens, Joe Manchin, Jon Tester, Montana, Arizona Sen, Kyrsten, Jared Golden, Marie Gluesenkamp Perez, Biden Organizations: Washington CNN —, Senate, Republicans, Democratic, Maine, Washington Rep, Congressional, Office, Republican, Job, Network Foundation, Public, of Education Locations: West Virginia, Arizona, Texas
Work requirementsRepublicans had proposed boosting work requirements for able-bodied adults without dependents in certain government assistance programs. Democrats had roundly criticized the proposed changes, saying they would lead to fewer people able to afford food or health care without actually increasing job participation. However, the agreement would expand some work requirements for the Supplemental Nutrition Assistance Program, or SNAP, formerly known as food stamps. The budget agreement keeps Biden's student loan relief in place, though the Supreme Court will have the ultimate say on the matter. The Supreme Court is dominated 6-3 by conservatives, and those justices' questions in oral arguments showed skepticism about the legality of Biden's student loans plan.
WASHINGTON, May 28 (Reuters Breakingviews) - For President Joe Biden, a debt-ceiling victory comes with a bittersweet taste. The White House and top congressional Republican Kevin McCarthy reached a tentative deal for lifting the government’s borrowing limit on Saturday night. After months of negotiation, Biden and McCarthy reached an agreement just nine days before U.S. Treasury Secretary Janet Yellen said the country was expected to run out of cash. The deal lifts the debt ceiling about $4 trillion from its current level of $31.4 trillion, extending the government’s borrowing power for two more years. Follow @BenWinck on TwitterCONTEXT NEWSThe Biden administration and top congressional Republican Kevin McCarthy reached an agreement in principle on May 27 for raising the U.S. government’s debt ceiling.
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