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☆ A Gen Xer with $47,000 in student debt just got word his loans will finally be wiped out after nearly 3 decades of payments
▼ + stars: | 2023-07-30 | by ( Ayelet Sheffey | ) www.businessinsider.com time to read: +6 min

Jason Harmon, 54, has $47,000 in student debt he's been paying off for nearly three decades. Jason Harmon, 54, has $47,000 in student debt that could soon be forgiven through a one-time account adjustment. "With these changes, you are now eligible to have some or all of your student loans forgiven because you have reached the necessary 240- or 300-months' of payments under IDR." And that's really the most important feeling that I'm going to get out of this," he said. I'm not going to believe the government's letter, I'm going to believe the credit report," Harmon said.

Persons: Jason Harmon, he's, Harmon, Joe Biden's, Harris, isn't, It's, it's, I've, I'm, you'll, – Organizations: Education Department, Service, University of Arkansas, Joe Biden's Education Department, Biden, Harris Administration Locations: Wall, Silicon, Arkansas, MOHELA, —

☆ Student-loan borrowers should be able to achieve 'financial freedom' through bankruptcy, Elizabeth Warren says — especially with 'the looming threat of restarting' repayment
▼ + stars: | 2023-07-27 | by ( Ayelet Sheffey | ) www.businessinsider.com time to read: +5 min

Sen. Elizabeth Warren sent a letter to the Justice Department for an update on bankruptcy reforms for student-loan borrowers. In November, the DOJ updated guidance to make the bankruptcy process easier. In November, President Joe Biden's Education and Justice Departments released new guidance on the process for borrowers to get rid of their debt through bankruptcy. As Insider previously reported, Biden himself played a part in making the bankruptcy process more difficult for student-loan borrowers. The Justice Department has not yet commented on updates to the bankruptcy process.

Persons: Sen, Elizabeth Warren, Massachusetts Sen, Joe Biden's, it's, Warren, Merrick Garland, Garland, Biden, Richard Cordray, we're Organizations: Justice Department, DOJ, Service, Massachusetts, Joe Biden's Education, Justice, ED, Consumer, Federal, Department, Education Department, Consumer Financial Protection Bureau Locations: Wall, Silicon

☆ 7,400 student-loan borrowers hurt by a school's 'widespread misconduct' are getting $130 million in debt wiped out, Biden's Education Department says
▼ + stars: | 2023-07-25 | by ( Ayelet Sheffey | ) www.businessinsider.com time to read: +5 min

The Education Department announced it will be wiping out $130 million in student debt for 7,400 borrowers. On Tuesday, the Education Department announced it will deliver $130 million in debt cancellation to 7,400 students who were enrolled at Colorado-based locations of CollegeAmerica between January 1, 2006 and July 1, 2020. The department said it will begin notifying borrowers eligible for relief in August, after which those borrowers will see their remaining balances wiped out. In 2022, CEHE sued the Education Department, accusing it of forcing the company to close so students would qualify for debt relief. And in total, we have approved $116 billion in debt relief for over 3.4 million Americans," he continued.

Persons: Joe Biden's, Richard Cordray, CEHE, Philip Weiser, –, Biden, we've Organizations: Education Department, Service, Joe Biden's Education Department, Center, Excellence, Higher, Aid, Colorado Attorney, Corinthian Colleges, CollegeAmerica Locations: Colorado, CollegeAmerica, Wall, Silicon, CollegeAmerica Colorado

☆ Biden's Education Department just finalized a rule allowing states to protect student-loan borrowers from 'unfair and deceptive practices,' reversing the Trump administration's efforts
▼ + stars: | 2023-07-24 | by ( Ayelet Sheffey | ) www.businessinsider.com time to read: +4 min

The Education Department finalized a rule to allow state oversight into federal student-loan servicers. The rule is intended to protect borrowers from misleading behavior or inaccurate payment counts. The department concluded that the Higher Education Act of 1965 allows states to play a role in regulating federal loan servicers to better protect borrowers from misleading behavior. "States may consider and adopt additional measures which protect borrowers and can be harmonized with Federal law," it said. The notice does have some limits on what states can do, like ruling a federal loan servicer in a state cannot continue operations.

Persons: Joe Biden's, Miguel Cardona, Donald Trump's, Betsy DeVos, —, servicers Organizations: Education Department, Service, Joe Biden's Education Department, Federal, Higher, Department, servicer Locations: Wall, Silicon, Federal, —

☆ Student-loan companies are putting borrowers at 'heightened risk' of harm if they fail to prepare for payments to resume, 6 Democratic lawmakers say
▼ + stars: | 2023-07-20 | by ( Ayelet Sheffey | ) www.businessinsider.com time to read: +5 min

Student-loan payments are resuming in October without broad debt relief. A group of Democrats asked CEOs of student-loan companies how they are preparing for the restart. They want updated information on how the companies are training customer service workers and reaching out to borrowers. Since March 2020, student-loan payments have been on pause, with interest waived, to provide borrowers financial relief during the pandemic. It announced a 12-month "on-ramp" period once payments resume during which borrowers will not be reported to credit agencies for missed payments, along with a new income-driven repayment plan to lower monthly payments.

Persons: Elizabeth Warren, Richard Blumenthal, Chris Van Hollen, Ed Markey, Sherrod Brown, Bob Menendez —, Donald Trump, Joe Biden, Biden, servicers Organizations: Service, Democratic, Public, Federal Student Aid, Republicans, Biden's Education Department Locations: Wall, Silicon

☆ Over 800,000 student-loan borrowers are getting their debt wiped out in the coming months. Here's what other borrowers should know if they also want that relief.
▼ + stars: | 2023-07-17 | by ( Ayelet Sheffey | ) www.businessinsider.com time to read: +4 min

The Education Department announced $39 billion in debt relief for over 800,000 borrowers. On Friday, President Joe Biden's Education Department announced that over 800,000 student-loan borrowers will receive $39 billion in debt relief in the coming months thanks to a one-time adjustment to accounts enrolled in an income-driven repayment plan. Here's what borrowers should know if they want to benefit from the relief. How to make sure your loans qualifyThe account adjustment only applies to direct federal loans and FFEL loans held by the Education Department. How to get a refund if a borrower overpaysOnce a borrower reaches the repayment threshold, they automatically qualify for forgiveness.

Persons: Joe Biden's, Education Department —, you'll Organizations: Education Department, Service, Joe Biden's Education Department, Family Education, Federal Student Aid Locations: Wall, Silicon, PAYE

☆ Chief Justice John Roberts said his opinion to strike down student-loan forgiveness doesn't mean the court opposes all relief. It just means Biden didn't have the authority to carry it out.
▼ + stars: | 2023-06-30 | by ( Juliana Kaplan | Ayelet Sheffey | ) www.businessinsider.com time to read: +4 min

On Friday, the Supreme Court struck down President Biden's student-loan forgiveness plan. Chief Justice John Roberts said in his opinion that the Secretary of Education wasn't the proper person to implement it. The Supreme Court thinks it's a matter suited to the legislative branch, rather than the executive one. "The question here is not whether something should be done; it is who has the authority to do it," Roberts concluded. So he could potentially enact a plan to deliver relief using another law, like the Higher Education Act of 1965, which does not rely on a national emergency.

Persons: Biden's, John Roberts, —, Joe Biden's, Miguel Cardona's, Biden, John Roberts scathingly, Roberts, Massachusetts Sen, Elizabeth Warren, they've Organizations: Service, Department, Republican, Higher, Democratic, Twitter Locations: wheelhouse, Massachusetts

☆ Biden isn't extending the student-loan payment pause — but borrowers might not have to immediately start repayment in October
▼ + stars: | 2023-06-29 | by ( Ayelet Sheffey | ) www.businessinsider.com time to read: +4 min

The Education Department finalized a three-month grace period after payments resume, per Politico. The Supreme Court will issue a decision on Biden's broad debt relief plan on Friday. In addition to the grace period, Politico also reported that the Education Department will unveil its new income-driven repayment plan in the coming weeks, with implementation soon after. The Education Department did not immediately respond to Insider's request for comment on its forthcoming plans. Amid the repayment debate, the most pressing issue for borrowers right now is whether the Supreme Court will uphold Biden's broad student-loan forgiveness.

Persons: It's, —, Joe Biden's, Biden, Biden's, Virginia Foxx, Foxx, Sen, Bill Cassidy, Secretary Miguel Cardona, Alexandria Ocasio, Cortez Organizations: Education Department, Politico, Service, Joe Biden's Education Department, Republican, Department, Secretary, Democratic Locations: Alexandria, United States

☆ Biden's Education Department is 'ill prepared' to resume student-loan payments for millions of borrowers in 3 months, 2 GOP lawmakers say — and they're demanding 'proof' of a repayment strategy
▼ + stars: | 2023-06-28 | by ( Ayelet Sheffey | ) www.businessinsider.com time to read: +4 min

Student-loan payments are set to resume in October. GOP Rep. Foxx and Sen. Cassidy asked the Education Department for its strategy on the resumption. They said they're concerned the department is "ill prepared" to transition borrowers back into repayment. Two Republican lawmakers want to know how the Education Department is preparing for that to happen. Since March 2020, federal student-loan payments — and interest — have been on pause to provide borrowers with financial relief during the pandemic.

Persons: Foxx, Sen, Cassidy, they're, —, Joe Biden's, Miguel Cardona, Biden, Virginia Foxx, Bill Cassidy, Cardona, Mr Organizations: GOP, Education Department, Service, Department, Politico, Federal Student

☆ Student-loan payments are resuming in 3 months — and borrowers might not be ready for the 'sizeable shock' to their wallets
▼ + stars: | 2023-06-26 | by ( Ayelet Sheffey | ) www.businessinsider.com time to read: +4 min

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

☆ Student-loan borrowers will begin making payments in October — and they'll be notified 'well before' their first bill is due, Biden's Education Department says
▼ + stars: | 2023-06-15 | by ( Ayelet Sheffey | ) www.businessinsider.com time to read: +4 min

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

☆ 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?

☆ Biden's Education Department just released its 'strongest-ever' plan to ensure student-loan borrowers don't graduate with unaffordable debt
▼ + stars: | 2023-05-17 | by ( Ayelet Sheffey | ) www.businessinsider.com time to read: +6 min

The Education Department released its new proposal for a strengthened gainful employment rule. The rule would place safeguards for borrowers to ensure they don't take on more student debt than they can afford. "Ever since the Trump Administration illegally repealed the 2014 Gainful Employment rule, students have been left unprotected from predatory higher ed profiteers," Ament said. The gainful employment rule has drawn criticism from for-profit schools in the past who have argued that they were being targeted by the strengthened regulations. Democratic lawmakers have previously pushed for a strengthened gainful employment rule.

☆ A student-loan lender's lawsuit to end the payment pause is 'doomed' — and a federal court should throw it out, Biden's Education Department says in a new legal filing
▼ + stars: | 2023-05-16 | by ( Ayelet Sheffey | ) www.businessinsider.com time to read: +4 min

Student-loan lender SoFi filed a lawsuit to end the student-loan payment pause in March. The Education Department filed its response on Monday night, asking a court to dismiss the case. In March, SoFi — a student-loan refinancing company — sued the Education Department and asked the court to end the ongoing student-loan payment pause. "Indeed, information considered by the Department showed that even in November 2022, the economic harms of the pandemic lingered, and the nascent recovery was fragile for many student-loan borrowers." Additionally, the department wrote in its complaint that it did consider "various alternatives" to the payment pause extension it ended up enacting.

☆ Biden's Education Secretary confirms the process of resuming student-loan payments will start 'no later than June 30': 'The emergency period is over'
▼ + stars: | 2023-05-11 | by ( Ayelet Sheffey | ) www.businessinsider.com time to read: +3 min

Education Secretary Miguel Cardona confirmed his commitment to resume student-loan payments this year. Payments are set to resume 60 days after June 30 or 60 days after a Supreme Court debt-relief decision. On Thursday, Education Secretary Miguel Cardona testified before the Senate Appropriations Committee about his budget request and plans for the upcoming fiscal year. In light of the conservative-backed lawsuits that paused the broad debt relief, Biden extended the student-loan-payment pause through 60 days after June 30 or 60 days after the Supreme Court issues its final decision. As Insider previously reported, the department has started communicating with student-loan companies to prepare borrowers to resume repayment.

☆ 615,000 student-loan borrowers in public service have now gotten $42 billion in debt wiped out under temporary reforms — and getting relief going forward will soon be a lot easier, Biden's Education D
▼ + stars: | 2023-05-08 | by ( Ayelet Sheffey | ) www.businessinsider.com time to read: +4 min

The Education Department said 615,000 borrowers have gotten $42 billion in relief since October 2021. That's a result of temporary reforms to the Public Service Loan Forgiveness program. On Monday, the department announced that 615,000 borrowers in public service have received $42 billion in student-loan forgiveness since October 2021. That's why it implemented a limited-time waiver that allowed past payments to count toward borrowers' forgiveness progress, including those that were previously deemed ineligible for relief. Have you recently received debt relief through the public service loan forgiveness program?

☆ Meet a 64-year-old therapist who's been making student-loan payments for decades while working in public service — but still hasn't gotten loan forgiveness
▼ + stars: | 2023-04-30 | by ( Ayelet Sheffey | ) www.businessinsider.com time to read: +7 min

Greg Ogden, 64, said he's been paying off his student loans since 1994 while working in public service. He said he applied for Public Service Loan Forgiveness but paperwork errors have kept him in repayment. Now, he said he owes about $25,000 in student debt, and he's frustrated it's still hanging over his head at this point in his life. "I want to fulfill my obligations, but I would like them to honor the payments that I've made," Ogden said. Do you have a story to share about your student debt?

☆ A new bipartisan bill would make sure government and nonprofit workers can get student-loan forgiveness — even if they leave public service after 10 years
▼ + stars: | 2023-04-27 | by ( Ayelet Sheffey | ) www.businessinsider.com time to read: +5 min

The bill would eliminate the requirement to be employed in public service at the time of debt relief. It would ensure that borrowers that complete the required 120 qualifying payments will get loan forgiveness. The Public Service Loan Forgiveness (PSLF) program was created in 2007 to give government and nonprofit workers student-loan forgiveness after ten years, or 120 qualifying payments. "Since its creation, the Public Service Loan Forgiveness program has had persistent issues that have made it difficult for public service employees to access student debt relief in exchange for their dedicated service to our nation," Menendez said in a statement. "Our public servants, like police officers and teachers, rightfully have access to student loan forgiveness after ten years of public service," Houlahan said in a statement.

☆ A student-loan borrower just got $78,000 in debt wiped out in court after 3 decades of repayment following Biden's new bankruptcy guidance
▼ + stars: | 2023-04-26 | by ( Ayelet Sheffey | ) www.businessinsider.com time to read: +4 min

Zena Dodson, a borrower with $78,000 in student debt, just got her loans discharged via bankruptcy. The relief follows new Education and Justice Department reforms to the bankruptcy process last year. But Biden's Education and Justice Department guidance last year streamlined the process for student-loan borrowers to receive relief through bankruptcy, which helped get Dodson her relief. "For too long, the federal government was fighting borrowers in bankruptcy court based on overly-stringent guidance," Ament said. "We're hopeful these new policies give more student loan borrowers like Ms. Dodson a chance at a financial fresh start."

☆ Biden's Education Department is planning for student-loan borrowers to resume payments in October — and companies will begin charging interest a month before
▼ + stars: | 2023-04-25 | by ( Ayelet Sheffey | ) www.businessinsider.com time to read: +5 min

The Education Department is asking student-loan companies to prepare for the student-loan payment resumption. Since March 2020, federal student-loan payments have been paused and interest has been waived to give borrowers financial relief during the pandemic. New documents obtained by Politico through a public records request found that the Education Department has been issuing guidance to student-loan companies surrounding restarting payments. According to the documents, the companies should prepare to resume charging interest on borrowers' loans in September, and the department is anticipating borrowers will make their first monthly payment in October. But some borrowers want to ensure that the department will keep pushing for relief, regardless of a court ruling.

☆ 37 million student-loan borrowers will get 'the most affordable repayment plan ever' when new contracts with 5 companies go into effect next year, Biden's Education Department says
▼ + stars: | 2023-04-25 | by ( Ayelet Sheffey | ) www.businessinsider.com time to read: +4 min

The Education Department awarded five student-loan companies new contracts to overhaul debt repayment. The department said the contracts will deliver "major improvements" for student-loan borrowers. "This additional funding is essential to support students and student loan borrowers," the press release said. But the Republican-controlled House is unlikely to approve more funding to facilitate student-loan programs. Speaker of the House Kevin McCarthy, for example, proposed cutting spending for the Education Department to prohibit it from implementing student-loan forgiveness and creating a new income-driven repayment plan in his debt ceiling bill.

☆ Kevin McCarthy is fighting to 'deny critical student debt relief' to 83,000 of his own constituents in his new debt ceiling bill, Biden's Education Secretary says
▼ + stars: | 2023-04-21 | by ( Ayelet Sheffey | ) www.businessinsider.com time to read: +3 min

Kevin McCarthy unveiled his bill to raise the debt ceiling on Wednesday. It included banning student-loan forgiveness and ending the payment pause. The 320-page bill included $4.5 trillion in spending cuts, including strengthened work requirements on welfare programs, rescinding unspent pandemic funds, and banning student-loan forgiveness. Currently, Biden's broad debt relief is paused following two conservative-backed lawsuits that blocked the implementation of the plan, and the Supreme Court is expected to issue a final decision of the legality of the relief by June. "Let's get this straight: MAGA House Republicans are holding the economy hostage to prevent student debt relief from happening, while making it easier for the rich to cheat on their taxes," Biden wrote on Twitter on Thursday.

☆ The Supreme Court just ruled that $6 billion in student-loan forgiveness for 200,000 borrowers can move forward
▼ + stars: | 2023-04-13 | by ( Ayelet Sheffey | ) www.businessinsider.com time to read: +3 min

The Supreme Court ruled that $6 billion in student-debt relief for 200,000 borrowers can move forward. Three schools named in the settlement had asked the Supreme Court to pause the relief. The lawsuit was first filed in 2019 under former President Donald Trump on behalf of borrowers with stalled borrower defense claims, or claims borrowers can file if they believe they were defrauded by the school they attended. The Ninth Circuit Court of Appeals rejected the request, and now, the Supreme Court came to the same conclusion. "The application for stay presented to Justice Kagan and by her referred to the Court is denied," the Supreme Court wrote in its very brief decision.

☆ This new paperwork rule could make getting student-loan forgiveness easier for government and nonprofit workers
▼ + stars: | 2023-04-13 | by ( Ayelet Sheffey | ) www.businessinsider.com time to read: +3 min

The Education Department updated guidance for applying for Public Service Loan Forgiveness. Previously, strict paperwork requirements caused many borrowers' applications to be rejected. President Joe Biden's Education Department updated guidance for the Public Service Loan Forgiveness (PSLF) program, which is intended to forgive student debt for government and nonprofit workers after ten years of qualifying payments. "FSA has begun to implement and test a digital employer signature for PSLF," an Education Department spokesperson told Insider. In October 2021, it implemented a limited-time waiver to allow previously ineligible payments to count toward a borrower's loan forgiveness progress.

☆ Thousands of student-loan borrowers are facing 'obvious harm' if the Supreme Court agrees to halt the debt relief they already won in court, Biden's Education Department says
▼ + stars: | 2023-04-12 | by ( Ayelet Sheffey | ) www.businessinsider.com time to read: +4 min

The Education Department pushed back on a lawsuit to halt student-debt relief for borrowers who said they were defrauded. A federal judge signed off on a settlement that would give those borrowers $6 billion in debt relief. The Education Department agreed to the settlement last summer, and in November, a federal judge signed off on $6 billion in debt relief for 200,000 borrowers. On Wednesday, the Education Department responded to the schools' appeal, and as expected, it told the Supreme Court that staying the relief will cause "obvious harm" for impacted borrowers and the department itself. The Supreme Court heard oral arguments in a case aiming to block that broader relief in February.

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