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Olivier Douliery | Afp | Getty ImagesAmberlee McGaughey, a librarian in Pennsylvania, was not worried about the restart of student loan payments. In August, she applied for the Public Service Loan Forgiveness program with her loan servicer, MOHELA, or the Missouri Higher Education Loan Authority. Around 7% of student loan borrowers are now more than $100,000 in debt. "The government has made all these announcements, and it's really confusing to people," said Scott Buchanan, executive director of the Student Loan Servicing Alliance, a trade group for federal student loan servicers. Her original student loan bill of $483, which was listed as due on Oct. 20, wasn't affordable for her.

Persons: Miguel Cardona, Kamala Harris, Olivier Douliery, she's, MOHELA, couldn't, Ella Azoulay, Carolina Rodriguez, Rodriguez, Scott Buchanan, Joe Biden, he'd, didn't, Biden, servicers, Braxton Brewington, Sarah Cluff, Sarah Cluff Still, servicer, Cluff, Sen, Elizabeth Warren, Nelnet, Joe Popevis, NelNet, Popevis, Servicers, Brewington, Amberlee, Jane Fox, Fox, Buchanan, Rocky, they'll Organizations: Washington , D.C, Afp, Getty, Public, Missouri Higher Education Loan Authority, CNBC, Finance, Biden, Student, Protection, Carolina, Education, Consumer, Student Loan, Alliance, U.S . Department of Education, Valuable Education, Education Department, MOHELA, SAVE, Legal, Association of Legal Locations: Washington ,, Pennsylvania, Missouri, U.S, New York, servicers

☆ Student loan forgiveness: How Biden continues to cancel debt after Supreme Court ruling
▼ + stars: | 2023-10-22 | by ( Katie Lobosco | ) edition.cnn.com time to read: +9 min

Washington CNN —Although the Supreme Court struck down President Joe Biden’s signature student loan forgiveness program in late June, his administration has found ways to cancel more than $48 billion in debt since then. That’s more student loan forgiveness than was granted under any other administration – in part due to the Biden administration’s efforts to temporarily expand some debt relief programs and to correct past administrative errors made to borrowers’ student loan accounts. Expanding debt relief program for public-sector workersNearly $51 billion of student loan debt has been canceled for 715,000 borrowers through the Public Service Loan Forgiveness program since Biden took office. The PSLF program cancels outstanding federal student loan debt for public-sector workers who have made 120 qualifying monthly student loan payments, or about 10 years’ worth of payments. Nearly 513,000 borrowers with a total and permanent disability have received $11.7 billion in student loan forgiveness since 2021.

Persons: Joe Biden’s, Biden, Trump, they’d, –, “, Virginia Foxx, ”, Abby Shafroth, Shafroth, Betsy DeVos Organizations: Washington CNN, of Education, Office, Congress, ”, CNN, Department of Education, Republican, Education, White, New Civil Liberties Alliance, Cato Institute, Mackinac Center for Public Policy, National Consumer Law Center, Loan, Public, PSLF, University of Phoenix, Corinthian Colleges, Social Security Administration, Department of Veterans Affairs, Department, Social Security Locations: Michigan

Our experts answer readers' student loan questions and write unbiased product reviews (here's how we assess student loans). AdvertisementAdvertisementAs of October 2023, student loans payments are back, but there are options if you can't afford them. As of October 2023, monthly payments are once again due on federal student loans after being paused since March 2020. Fortunately, there are solutions for people who can't afford student loan payments now. Borrowers who don't want to pay the payment on a standard 10-year repayment plan should look into income-driven repayment plans (including Biden's new SAVE repayment plan).

Persons: —, Jared Costigan, Costigan, Robert Farrington, Farrington, Danny Cieniewicz, you'll, Kantrowitz, Ben Markley Organizations: Service, White, The College Investor, Hyperion, Public, More College Financial

☆ Student-loan companies are asking for patience to resolve account errors as payments come due, but borrowers can't afford to wait
▼ + stars: | 2023-10-08 | by ( Ayelet Sheffey | ) www.businessinsider.com time to read: +6 min

AdvertisementAdvertisementAlicia, 48, is just a few months away from qualifying for student-debt relief through the Public Service Loan Forgiveness program. She said she anticipated that once the student-loan payment pause ended, she would be facing the same monthly payment. After over three years, the pandemic student-loan payment pause is officially over — interest started to accrue again in September, and bills are now starting to become due. So we can't wait months and months and months." Are you having challenges with student-loan repayment?

Persons: servicers haven't, —, Alicia, Alicia —, I've, servicers, it's, it'll, they're, We're, Xiong Chang, Xiong, I'm, servicer, he's, Miguel Cardona Organizations: Service, Public, Education Department, Customer Service Locations: PSLF

☆ Student-loan borrowers who weren't in the last round of debt cancellation can still count on relief if they 'did their end of the bargain,' Biden's Education Secretary says
▼ + stars: | 2023-10-04 | by ( Ayelet Sheffey | ) www.businessinsider.com time to read: +4 min

The Education Department announced $9 billion in debt relief for 125,000 student-loan borrowers this week. The department will continue evaluating which borrowers have completed the required payments. AdvertisementAdvertisementThe top education official doesn't want student-loan borrowers who believe they've made the required payments to lose hope if they have not yet gotten debt relief. According to Federal Student Aid, the Education Department will continue evaluating borrowers' accounts every two months to determine who has met the threshold for relief. Cardona said he recognizes "how difficult it is for so many borrowers" especially after the Supreme Court struck down President Joe Biden's first plan for debt relief.

Persons: Miguel Cardona, —, they've, PSLF, " Cardona, Cardona, Joe Biden's Organizations: Education Department, Service, Public, Education, Federal Student Aid, Federal

☆ 125,000 student-loan borrowers are getting $9 billion in debt wiped out through a series of Biden's repayment reforms
▼ + stars: | 2023-10-04 | by ( Ayelet Sheffey | ) www.businessinsider.com time to read: +4 min

The Education Department announced $9 billion in student-debt relief for 125,000 borrowers. It impacts borrowers in public service, on income-driven plans, and those with total and permanent disabilities. AdvertisementAdvertisementPresident Joe Biden's Education Department just announced its latest batch of student-debt relief for targeted groups of borrowers. On Wednesday, the department announced that it has approved $9 billion in debt cancellation for 125,000 borrowers. That included a one-time account adjustment for borrowers on income-driven repayment plans and PSLF — most recently, the department announced it had approved relief for 804,000 borrowers on income-driven repayment.

Persons: —, Joe Biden's, Biden, Miguel Cardona, Harris, It's, they're, Education James Kvaal, he's Organizations: Education Department, Service, Joe Biden's Education Department, Public, Social Security Administration, Biden, Education

☆ 260,000 student-loan borrowers who were approved for debt relief might be pushed back into repayment anyway, a legacy advocacy group says
▼ + stars: | 2023-09-23 | by ( Ayelet Sheffey | ) www.businessinsider.com time to read: +5 min

Student-loan borrowers who were part of a 2022 settlement are still waiting for their relief to be processed. A legal advocacy group said a student-loan company is not carrying out the settlement terms correctly. It said some borrowers within the settlement were told they have to resume payments in October. The group said that forcing borrowers with pending borrower defense claims back into repayment "violates the court-approved Settlement Agreement and applicable regulations." The federal pause on student-loan payment ended on September 1 when interest began accruing again on borrowers' balances.

Persons: They're, Cardona —, Donald Trump's, Joe Biden's, it's, MOHELA, Scott Giles, servicers, Cardona, Virginia Foxx, Sen, Bill Cassidy —, —, New Jersey Sen, Bob Menendez, Secretary Miguel Cardona Organizations: Service, Education Department, Donald Trump's Education Department, Department, Consumer Financial, Bureau, Democratic, New, Secretary, Public, The Education Department Locations: Wall, Silicon, New York, Sweet v, New Jersey

☆ Student-loan borrowers eligible for debt cancellation might be 'forced back into repayment' anyway because of their servicer's poor customer service, 6 Democratic senators say
▼ + stars: | 2023-09-21 | by ( Ayelet Sheffey | ) www.businessinsider.com time to read: +5 min

Six Democratic lawmakers requested the Education Department look into student-loan company MOHELA. They said they're concerned with paperwork delays that could force borrowers who qualify for PSLF relief back into repayment. Federal student-loan payments are resuming on October 1. "With the restart of repayments, these issues are likely to worsen for borrowers," the lawmakers said in the letter. "Borrowers who are eligible to have their debt cancelled under the PSLF program should not be forced back into repayment due solely to MOHELA's processing delays, which cause difficult financial situations for so many borrowers.

Persons: MOHELA, New Jersey Sen, Bob Menendez, Sen, Elizabeth Warren, Secretary Miguel Cardona, they've, Angus King, Alex Padilla, Ed Markey, Cory Booker, Cardona, Katie Porter, Joe Courtney, Scott Giles, that's, Scott Buchanan, servicers — Organizations: Democratic, Education Department, Federal, Service, Secretary, Public, MOHELA, Department, Student Loan, — Locations: Wall, Silicon, New Jersey, PSLF, Sens

☆ It should be easier now for student borrowers to apply for public service loan forgiveness. Here's why
▼ + stars: | 2023-08-28 | by ( Annie Nova | ) www.cnbc.com time to read: +2 min

Drazen Zigic | Istock | Getty ImagesNavigating the Public Service Loan Forgiveness Program has been famously difficult. Fortunately, student loan borrowers may find that the process is getting a little easier. watch nowOnce the process is complete, the form should automatically be delivered to the Missouri Higher Education Loan Authority (MOHELA). That's the student loan servicer that currently handles PSLF borrowers (previously FedLoan did so). Try to fill out this form at least once a year, Kantrowitz added, and keep records of your confirmed qualifying payments.

Persons: Drazen Zigic, Mark Kantrowitz, George W, Bush, you've, servicer, Kantrowitz Organizations: Istock, Getty, Public, U.S . Department of Education, Consumer Financial, Bureau, Missouri Higher Education Loan Authority, Education Department Locations: Missouri

☆ A student-loan company's 'history of mismanagement' is putting millions of borrowers in public service at risk with payments about to resume, 2 Democratic lawmakers say
▼ + stars: | 2023-08-17 | by ( Ayelet Sheffey | ) www.businessinsider.com time to read: +4 min

Reps. Katie Porter and Joe Courtney sent a letter to student-loan company MOHELA on Tuesday. They asked how the company is using its resources to manage the Public Service Loan Forgiveness portfolio. Borrowers have reported difficulty getting help from MOHELA during the payment pause. On Tuesday, Reps. Katie Porter and Joe Courtney sent a letter to Scott Giles, the CEO of student-loan company MOHELA, which manages the Public Service Loan Forgiveness portfolio. Nelnet, another student-loan company, announced in March that it was cutting its call center hours and laying off 550 employees likely due to budget constraints.

Persons: Katie Porter, Joe Courtney, MOHELA, haven't, Scott Giles, Joe Biden's, Porter, Courtney, Giles, Nelnet, — Organizations: Public, Service, Democratic, MOHELA, Joe Biden's Education Department, Department, —, Education Department Locations: MOHELA, Wall, Silicon, PSLF

☆ A federal judge threw out a lawsuit seeking to block student-loan forgiveness for over 800,000 borrowers
▼ + stars: | 2023-08-14 | by ( Ayelet Sheffey | ) www.businessinsider.com time to read: +3 min

A federal judge dismissed a lawsuit to block student-debt relief from income-driven repayment plans. Last week, conservative-backed groups filed a lawsuit to block relief for 800,000 borrowers. On Monday, Judge Thomas Ludington in the Eastern District of Michigan Northern Division ruled that a lawsuit seeking to block $39 billion in debt relief for 800,000 borrowers lacks standing and is dismissed. The ruling means that — barring other legal challenges — the Education Department will continue looking at borrowers' income-driven repayment accounts every two months to determine if they qualify for debt relief, and those who do not want the debt relief will have the option to opt out. Borrowers can also apply for the SAVE Plan before federal payments resume — a new income-driven repayment plan intended to make borrowers' monthly payments cheaper.

Persons: Joe Biden's, Judge Thomas Ludington, Lundington, Public Relations Holly Wetzel, Biden Organizations: Service, Eastern District of Michigan Northern Division, New Civil Liberties Alliance, Cato Institute, Mackinac Center for Public, Education Department, Public, Mackinac Center's, Public Relations, SAVE Locations: Wall, Silicon, Eastern District

☆ The lawsuits to block student-loan forgiveness keep coming — and the latest would keep borrowers who 'have earned the forgiveness' in debt, Biden's Education Department says
▼ + stars: | 2023-08-07 | by ( Ayelet Sheffey | ) www.businessinsider.com time to read: +5 min

Conservative groups filed a lawsuit last week to block Biden's latest student-debt relief effort. The relief would discharge loans for over 800,000 borrowers on income-driven repayment plans. But there are similarities in the arguments from the October lawsuit, and the most recent one challenging the income-driven repayment relief. "Unlawful cancellation of student-loan debt reduces the amount of a borrower's PSLF-cancellable debt and thus reduces the amount by which PSLF benefits qualified employment," it said. It's unclear how this lawsuit will impact debt discharges, but the administration has made no indication yet that the process will be halted.

Persons: Joe Biden's, —, Harris Organizations: PSLF, Service, New Civil Liberties Alliance, Cato Institute, Mackinac Center for Public, Education Department, Biden, Harris Administration, Public, Cato Institute and Mackinac Center, Federal Register Locations: Wall, Silicon

☆ Some student-loan companies are offering borrowers cheaper payments before the October restart. Making the switch could strip away a range of debt relief programs.
▼ + stars: | 2023-08-05 | by ( Ayelet Sheffey | ) www.businessinsider.com time to read: +5 min

Some student-loan companies are encouraging federal borrowers to refinance before the payment restart. Companies that manage private loans have started reaching out to federal borrowers, encouraging them to refinance their federal debt to get a better deal on payments. For example, SoFi — a student-loan refinancing company — sent letters to borrowers last month with a header reading, "Federal student loan forbearance is ending soon. Consumer Financial Protection Bureau Advisor to the Director Andrea Matthews told Insider in September that "the benefits to having a federal student loan have never been more tangible. Before federal payments resume in October, borrowers can enroll in the Education Department's new SAVE Plan, which is an income-driven repayment plan intended to lower monthly payments.

Persons: Joe Biden's, It's, —, forbearance, Biden's, Earnest, refinancer, refinancers, Andrea Matthews, Tanya Burnett, Burnett Organizations: Service, Education Department, Public, Biden, Consumer Financial Locations: Wall, Silicon

☆ A conservative group filed a lawsuit to block $39 billion in debt relief for 800,000 borrowers on income-driven repayment plans
▼ + stars: | 2023-08-04 | by ( Ayelet Sheffey | ) www.businessinsider.com time to read: +3 min

Conservative groups just filed a lawsuit to block Biden's latest student-debt relief effort. Last month, Biden announced $39 billion in relief for 800,000 borrowers through an adjustment to income-driven repayment plans. Last month, the Education Department said it would be automatically canceling $39 billion in student debt for 804,000 borrowers as a result of changes to the department's income-driven repayment plans. The relief was for borrowers who have completed the necessary 20 or 25 years of qualifying payments. They argued that as nonprofits, "unlawful cancellation of student-loan debt reduces the amount of a borrower's PSLF-cancellable debt and thus reduces the amount by which PSLF benefits qualified employment."

Persons: Biden, Joe Biden's, —, Biden's Organizations: Service, New Civil Liberties Alliance, Cato Institute, Mackinac Center for Public Policy, Education Department, Court, Eastern, Eastern District of Michigan, Department, Public Locations: Wall, Silicon, Eastern District

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 ,

☆ 3 ways federal student loan borrowers can have their debt forgiven—without the Supreme Court
▼ + stars: | 2023-06-30 | by ( Kamaron Mcnair | In Kamaronmcnair | ) www.cnbc.com time to read: +3 min

Some may say the president's loan forgiveness was a long shot in the first place, but the relief would have come easier than the paths to loan forgiveness currently available. Public Service Loan Forgiveness (PSLF), Teacher Loan Forgiveness, and forgiveness through income-driven repayment (IDR) are three of the ways federal student loan borrowers can still avoid paying back the rest their loans. Here's a look at the methods available to earn student loan forgiveness and whether they might be worth it for you. The program allows borrowers who hold qualifying positions to have their federal student loan balances cleared after 120 qualifying monthly payments. Income-Driven Repayment loan forgiveness

Persons: Joe Biden's, Biden Organizations: Higher Education, Public Locations: it's

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

Our experts answer readers' student loan questions and write unbiased product reviews (here's how we assess student loans). It will also mean it's time for student loan payments to resume. As federal pandemic relief comes to an end, student loan borrowers will see the return of their student loan payments. Include student loan payments in your budgetGet your budget ready now, before the payments start. If the student loan repayment pause ending has you worried, you may also look into other ways to make your payments: increasing your income, employer-based student loan repayment assistance and even Public Service Loan Forgiveness (PSLF), if you qualify.

Persons: Justin Lewis, It's, — Organizations: Service

☆ Over 14 million student-loan borrowers will resume payments this year under new companies — and that'll further 'complicate' the repayment process, a federal consumer watchdog says
▼ + stars: | 2023-06-16 | by ( Ayelet Sheffey | ) www.businessinsider.com time to read: +4 min

14 million student-loan borrowers could resume payments under a new servicer, the CFPB said in a new report. It could "complicate" the repayment process due to confusion on where the debt is owed, per the report. According to the report, 44%, or 14 million, student-loan borrowers in the bureau's sample will have their loans managed by at least one new student-loan company when payments resume, which could "complicate" the process. Additionally, the bureau found that about one in five borrowers in its sample have "risk factors" that suggest they could struggle when payments resume. "I'm in this limbo period not really knowing what's going on with my student loans," he said.

Persons: —, delinquencies, MOHELA, I'm Organizations: Service, Education Department, Consumer Financial, Public, Federal Student Aid, — Locations: autopay

☆ The Senate just passed a bill to block student-loan forgiveness and immediately end the payment pause
▼ + stars: | 2023-06-01 | by ( Ayelet Sheffey | ) www.businessinsider.com time to read: +4 min

The Senate just passed a bill to overturn student-debt relief and end the payment pause. On Thursday, the Senate passed a bill — first introduced in March — to overturn Biden's plan to cancel up to $20,000 in student debt for federal borrowers making under $125,000 a year by a vote of 52-46. Chuck Grassley and Bill Cassidy — sponsors of the bill — wrote an opinion piece in Fox News urging their colleagues in the Senate to pass the legislation to overturn student-loan forgiveness. Before the vote, Senate Majority Leader Chuck Schumer wrote on Twitter that "the Senate GOP is pushing a terrible measure to end the pause on student loan payments and overturn @POTUS's student loan cancellation program. But to overturn his landmark student debt relief program just to score political points?

Persons: Biden, —, Joe Biden's, Democratic Sens, Joe Manchin, Jon Tester, Independent Sen, Kyrsten Sinema, Chuck Grassley, Bill Cassidy —, Chuck Schumer, Massachusetts Sen, Elizabeth Warren, New Jersey Democratic Sen, Bob Menendez Organizations: Service, Democratic, Independent, Republicans, GOP, Fox News, Senate, Twitter, House Republicans, New, New Jersey Democratic Locations: Massachusetts, New Jersey

☆ How the student loan payment pause has made it easier for public servants to get forgiveness
▼ + stars: | 2023-05-26 | by ( Annie Nova | ) www.cnbc.com time to read: +4 min

Skynesher | E+ | Getty ImagesThe pandemic-era policy suspending federal student loan payments has been an especially big win for public servants. Most borrowers have benefited from the payment pause, which has lasted more than three years and spanned two presidencies. Here's what the payment pause has meant for those who are pursuing the relief. Advocates say that public servants deserved such a benefit after the problems that have plagued the loan forgiveness program. When the payment pause on federal student loans ends, likely in September, borrowers will have to resume payments to get credit for PSLF.

☆ The GOP's bill to permanently block Biden's student-debt relief could cause public servants' loan balances to unexpectedly balloon if it passes, advocacy groups say
▼ + stars: | 2023-05-23 | by ( Ayelet Sheffey | ) www.businessinsider.com time to read: +5 min

The SBPC and AFT released a report analyzing the impacts of a GOP bill to overturn student-debt relief. GOP Rep. Virginia Foxx rejected that idea during a hearing last week as Democrats said loans would be reinstated under the bill. However, the text of the CRA statute could suggest the GOP bill might do far more than block Biden's broad debt relief and the student-loan payment pauses. "This resolution will unwind debt relief already delivered to hundreds of thousands of public service workers across the country. The report also estimates that two million public servants making progress toward payments in PSLF could lose "at least some progress toward relief."

☆ Meet a teacher with $44,000 in student debt who is worried she'll be thrown back into repayment in a few months without the public service relief she was promised
▼ + stars: | 2023-05-21 | by ( Ayelet Sheffey | ) www.businessinsider.com time to read: +6 min

Cherie Vaughn, 57, has $44,000 in student debt after working in public service for decades. But she's worried her account will not be up to date before student-loan payments resume this year. That's even after serving nearly three decades in public service, making her eligible for full loan forgiveness. "I guess I'm just looking for the actual public service part of this loan forgiveness. Do you have a story to share about student debt?

☆ 'I did not lose hope': How it feels to have $19,000 in student loan debt forgiven
▼ + stars: | 2023-05-17 | by ( Kamaron Mcnair | In Kamaronmcnair | ) www.cnbc.com time to read: +4 min

But in 2022, they got a major boost: Francis had $19,000 in student debt erased through Public Service Loan Forgiveness (PSLF), despite being previously rejected. The program allows borrowers who work for government or nonprofit organizations to have their federal student loan balances cleared after 120 qualifying monthly payments. But currently, routes to student debt forgiveness are limited. To earn PSLF, borrowers have to make monthly payments — and continue working for an eligible employer — for 10 years. As of 2019, she had worked for the federal government for 14 years and made regular student loan payments.

☆ Biden administration has canceled $66 billion in student debt. How to know if you qualify
▼ + stars: | 2023-05-14 | by ( Annie Nova | ) www.cnbc.com time to read: +6 min

Still, advocates are worried about the administration's plan to soon resume federal student loan payments, which have been suspended since March 2020, without deeper debt cancellation. Even before the Covid-19 pandemic, 1 in 4 student loan borrowers were in delinquency or default. Here's a breakdown of the debt relief already granted — and how to know if you qualify for it. Defrauded borrowers got $13 billion in reliefThe Biden administration has been focused on canceling the student debt of borrowers who say their colleges misled them. Betsy Mayotte president of The Institute of Student Loan AdvisorsThe Project on Predatory Lending at Harvard University has a list of some of the institutions that were part of a student loan cancellation settlement.

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