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☆ Biden's step toward allowing student loan discharge in bankruptcy is 'a step in the right direction,' director of new student loan documentary says, but 'the devil is always in the details'
▼ + stars: | 2022-11-23 | by ( Katherine Tangalakis-Lippert | ) www.businessinsider.com time to read: +7 min

"Loan Wolves," a documentary about the law surrounding bankruptcy and student loans, premiers Dec. 11 on MSNBC. Currently, two words inserted into a '90s law make it nearly impossible for borrowers to declare bankruptcy over student loan debt. The conversation surrounding the "undue hardship" clause and student loan discharge through bankruptcy has evolved in recent years, as the Biden administration has progressed on promises to discharge some student debt and address the growing debt crisis. Cancelation of student debt? Schumer has been pushing Biden to cancel student loan debt.

☆ Biden administration to make it easier for student loan borrowers to discharge debt in bankruptcy
▼ + stars: | 2022-11-17 | by ( Annie Nova | ) www.cnbc.com time to read: +2 min

President Joe Biden speaks on the student debt relief plan as Secretary of Education Miguel Cardona listens in at the Eisenhower Executive Office Building in Washington, D.C., on Oct. 17, 2022. The Biden administration announced on Thursday updated guidelines that will make it easier for those struggling with their student debt to discharge it in bankruptcy. Under the rules, the agencies may recommend that a bankruptcy judge discharge a borrower's student debt if they find their case warrants it. Currently, it's difficult, if not impossible, for someone to walk away from their federal student debt in a normal bankruptcy proceeding. Outstanding student debt exceeds $1.7 trillion, and even before the pandemic, some 10 million borrowers were in delinquency or default.

☆ Biden's administration just made it easier for student-loan borrowers to get rid of their debt in court
▼ + stars: | 2022-11-17 | by ( Ayelet Sheffey | ) www.businessinsider.com time to read: +6 min

The Education and Justice Department released new guidance on bankruptcy for student-loan borrowers. The guidance gives federal borrowers an easier path to relief by making the process more transparent. On Thursday, President Joe Biden's Education and Justice Departments released new guidance on the pathway for student-loan borrowers to get rid of their debt through bankruptcy. While the undue hardship standard still exists, it's an improvement in that the clear guidelines will allow for consistent treatment of loan discharges. It also gives the Justice Department clear standards for recommending relief to the judge without having to go through time-consuming investigations, per the press release.

According to the source, FTX did not have nearly enough on hand. Its biggest customer, according to a source, was the hedge fund Alameda. In general, mixing customer funds with counterparties and trading them without explicit consent, according to U.S. securities law, is illegal. Sam Bankman-Fried declined to comment on allegations of misappropriating customer funds, but did say its recent bankruptcy filing was a result of issues with a leveraged trading position. The blurred lines between FTX and Alameda Research resulted in a massive liquidity crisis for both companies.

☆ The fate of Biden's student-loan forgiveness rests in the federal courts after neither party looks likely to gain a significant majority in the midterms
▼ + stars: | 2022-11-12 | by ( Ayelet Sheffey | ) www.businessinsider.com time to read: +6 min

That means that the fate of President Joe Biden's student-loan forgiveness doesn't lie in the hands of lawmakers, but rather, the federal courts. "We are disappointed in the decision of the Texas court to block loan relief moving forward. Amidst efforts to block our debt relief program, we are not standing down," he added. The department also aims to roll out improvements to targeted loan forgiveness programs, like Public Service Loan Forgiveness, by next summer. "It must use all of its tools to fight to ensure that borrowers receive the debt relief they need."

A good credit score to buy a car is often above 660, as you're then considered a "prime" borrower. While a good FICO credit score to buy a car with a loan is usually above 660, according to Experian data, there's no industry-wide, official minimum. According to Experian's analysis of auto loans in the second quarter of 2022, borrowers who received financing for a new car had an average credit score of 738, while borrowers who received financing for a used car had an average credit score of 675. What is a good credit score to buy a car? While FICO remains the most widely used credit score across all types of borrowing, an auto lender may also look at your credit score from VantageScore, a relatively new credit scoring system developed by the three credit bureaus.

☆ 5.5 million student-loan borrowers will struggle to restart payments in January, a consumer watchdog finds — but a third of them could have their balances completely wiped out if Biden's debt cancella
▼ + stars: | 2022-11-04 | by ( Ayelet Sheffey | ) www.businessinsider.com time to read: +4 min

The CFPB said that 5.5 million student-loan borrowers could struggle to repay debt in January. But one-third of them could have their balances completely wiped out from Biden's debt relief plan. As the CFPB said, 19% of those borrowers currently have balances under $10,000, and 16% have balances between $10,000 and $20,000. "And many borrowers with multiple risk factors who still have outstanding balances when payments resume may have reduced balances going forward." "That's 16 million Americans, so far, who should be seeing student debt relief in the coming days," Biden said.

☆ A Yale economist says a risky type of mortgage that contributed to the 2008 crash could save you money in the long run — if you can stomach uncertainty
▼ + stars: | 2022-11-02 | by ( Jacob Zinkula | Alcynna Lloyd | ) www.businessinsider.com time to read: +6 min

Most Americans have a fixed rate mortgage, meaning their interest rate stays steady over time. A Yale economist says adjustable rate mortgages can help borrowers save money on interest in the long run. They're less predictable than fixed-mortgages, but are attractive due to their potential to take advantage of times when interest rates are low. "For most people, the adjustable rate mortgage is preferable unless the fixed rate mortgage rate is at a historic low or if you're really stretching your budget to buy your home," Choi said. Ultimately, even if the long-term odds are in the borrower's favor, an adjustable rate mortgage carries its risks.

☆ Education Department overhauls federal student loan system, aiming to make it 'simpler, fairer and more accountable'
▼ + stars: | 2022-10-31 | by ( Annie Nova | ) www.cnbc.com time to read: +2 min

The U.S. Department of Education announced on Monday sweeping new changes to the federal student loan system, including additional consumer protections for borrowers and limits on the amount of interest that can accrue on the debt. "Today is a monumental step forward in the Biden-Harris team's efforts to fix a broken student loan system and build one that's simpler, fairer, and more accountable to borrowers," said U.S. Secretary of Education Miguel Cardona, in a statement. The Biden administration will also curb the practice of interest capitalization — in which unpaid interest is added to the borrower's principal. The Public Service Loan Forgiveness Program, which allows public servants and those who work for certain nonprofits to get their debt canceled after a decade, will also get an overhaul. Months that previously didn't qualify toward a borrowers' debt relief, including those when they were in a economic hardship deferment, will be counted.

☆ Meet a 30-year-old with $110,000 in student debt who chose her job in hopes of public-service loan forgiveness — but her balance just keeps growing
▼ + stars: | 2022-10-30 | by ( Juliana Kaplan | Ayelet Sheffey | ) www.businessinsider.com time to read: +7 min

Kjerstin Laine, 30, owes over $110,000 in student debt from undergraduate and graduate programs. But interest means she's barely paid it off, and Biden's forgiveness is just a drop in the bucket. For Laine, a 30-year-old who has over $110,000 in student debt, the $20,000 in forgiveness she's set to get from President Joe Biden's plan is just a drop in the bucket. Her situation points to the larger structural issues underpinning the student debt crisis, where first-generation and lower-income students take on huge debt burdens to get ahead and up their earnings but still find themselves buried under ever-growing balances. The company that manages the entire Public Service Loan Forgiveness portfolio — MOHELA — isn't making matters any easier.

☆ A court just ruled that CFPB's funding is unconstitutional, and that could be 'catastrophic' for mortgage markets
▼ + stars: | 2022-10-28 | by ( Stephanie Dhue | ) www.cnbc.com time to read: +6 min

Mortgage rules at riskIf the agency's legal authority is undermined, it could have a profound affect on home lending markets — an industry that's prone to disruption when laws are murky, especially as interest rates rise. That extended the potential damages to the Wall Street banks as well as mortgage investors Fannie Mae and Freddie Mac. Appeal likelyIf the Fifth Circuit decision is upheld, it could call into question those long-standing mortgage rules. "The loss of the CFPB mortgage regulations and the effect on the market would catastrophic," said Andreano. "Potential changes in how the CFPB are funded aren't likely to have an immediate effect on the mortgage market."

☆ Biden's Education Department just announced permanent steps to bring student-loan borrowers in targeted forgiveness programs closer to debt relief
▼ + stars: | 2022-10-25 | by ( Ayelet Sheffey | ) www.businessinsider.com time to read: +5 min

The Education Department announced permanent fixes to the Public Service Loan Forgiveness program. This comes just days before the PSLF waiver expires on October 31 and isn't being extended. Nearly one year ago, the Education Department announced reforms to 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. "Today, we're encouraging public service workers to take advantage of the program's temporary changes before the deadline on October 31," Education Secretary Miguel Cardona said in a statement. Although the PSLF waiver is soon expiring, the account adjustment will give borrowers one more chance to get their payment counts corrected.

☆ Justice Amy Coney Barrett rejected a bid to block Biden's student-loan forgiveness program
▼ + stars: | 2022-10-20 | by ( Oma Seddiq | Ayelet Sheffey | ) www.businessinsider.com time to read: +2 min

Justice Barrett dismissed a bid to block Biden's student-loan forgiveness program. A taxpayers group in Wisconsin filed the emergency request at the Supreme Court on Wednesday. Barrett, who handles emergency requests out of Wisconsin, rejected the group's bid. The request was widely considered a long-shot given that lower courts had already dismissed the group's challenges to Biden's program, ruling that they lacked legal standing. As the appeals process was still playing out, the taxpayers group escalated its bid to the Supreme Court, which ultimately failed.

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☆ Irish central bank eases mortgage-lending limits
▼ + stars: | 2022-10-19 | by ( Conor Humphries | ) www.reuters.com time to read: +1 min

DUBLIN, Oct 19 (Reuters) - Ireland's central bank is to ease mortgage-lending limits to allow first-time property buyers to borrow up to four times their income, it said on Wednesday following a review of lending rules designed to prevent a lending bubble. Currently lenders can only offer loans up to 3.5 times the income of first-time buyers. That is set to rise to four times from January, the bank said. The 3.5 times limit will remain for other buyers. The bank also raised the loan-to-value limit for those buying for the second time to 90% from 80%, putting them in line with current limits for first-time buyers.

☆ A conservative group just asked the Supreme Court to block Biden's student-loan forgiveness, saying it is 'critical' the relief is halted this week
▼ + stars: | 2022-10-19 | by ( Ayelet Sheffey | Oma Seddiq | ) www.businessinsider.com time to read: +5 min

A Wisconsin conservative group is asking SCOTUS to block Biden's student-debt relief. The group argued that the loan forgiveness has an "improper racial motive" and is unconstitutional. It said Biden exceeded his constitutional power by enacting the loan relief without congressional approval. While that decision is being appealed, the group is now escalating the issue to the Supreme Court in an effort to block Biden's plan from taking effect. The HEROES Act has been widely debated even before Biden announced debt relief.

☆ The student debt forgiveness application is live online: Here's how to apply
▼ + stars: | 2022-10-17 | by ( Kamaron Mcnair | ) www.cnbc.com time to read: +2 min

U.S. President Joe Biden speaks about student loan debt at the White House on Aug. 24, 2022 in Washington, DC. Following a successful beta test over the weekend, President Joe Biden announced on Monday the student debt forgiveness application is now live. You can visit the Federal Student Aid website to apply for up to $20,000 of student debt relief. What do I need to apply for student loan forgiveness? When is the deadline to apply for loan forgiveness?

☆ The student-loan forgiveness application is officially live, and your debt relief is now being processed
▼ + stars: | 2022-10-17 | by ( Ayelet Sheffey | ) www.businessinsider.com time to read: +3 min

Biden officially launched the application site for student-loan forgiveness on Monday. On Monday, Biden announced that the site to apply for student-loan forgiveness is officially live, following a beta test of the website conducted over the weekend. These are the federal loans that are eligible for relief, per the department:Undergraduate loansGraduate loansSpousal loansAnd parent PLUS and grad PLUS loans. The department recommends borrowers apply before mid-November to get the relief into their accounts before payments resume early next year, and student-loan companies will notify borrowers once the relief is processed. During his remarks, Biden maintained he has the legal standing to enact this broad debt relief and he called Republican pushback "wrong and hypocritical" during his remarks.

☆ Education Department launches beta website for student loan forgiveness applications
▼ + stars: | 2022-10-15 | by ( Zoë Richards | Https | Media-Cldnry.S-Nbcnews.Com Image Upload Newscms Shannon-Pettypiece-Circle-Byline-Template.Jpg | ) www.nbcnews.com time to read: +3 min

The Department of Education launched a beta test of its website Friday allowing federal student loan borrowers to begin submitting applications for some debt relief. Applications won't be processed until the site officially launches later this month, but borrowers who submit an application during the beta testing period will not need to reapply, an Education Department spokesperson said. Biden announced his student debt relief plan in August. NBC News has reached out to the Education Department for comment. The Education Department previously said that applications would available in early October.

☆ How Freddie Mac is helping renters use their on-time rent payments to build credit and achieve homeownership
▼ + stars: | 2022-10-12 | by ( Sponsor Post | Created Insider Studios With Freddie Mac | ) www.businessinsider.com time to read: +6 min

In this challenging economic environment, Freddie Mac has implemented two new initiatives that can help strengthen renters' ability to build credit and achieve homeownership using their history of on-time rent payments. Yet, unlike homeowners who make regular mortgage payments, renters generally do not see their on-time rent payments reflected in their credit scores. Worse yet, the most common way rent payments impact credit scores are when missed rental payments go into collection. After enrollment, the renter's on-time rent payments are reported to the credit bureaus each month. Since Freddie Mac began this initiative last year, 86,000 households across more than 900 multifamily properties have enrolled.

☆ The average student loan borrower will see their monthly bill drop by up to $300 a month when payments restart, says the Education Department
▼ + stars: | 2022-09-27 | by ( Juliana Kaplan | ) www.businessinsider.com time to read: +3 min

President Biden is forgiving up to $20,000 in student loans for federal borrowers making under $125,000. A Department of Education official said borrowers who see relief, monthly payments will shrink. That means, according to Powell, monthly payments will be recalculated based on a borrower's remaining balance. "We estimate the average borrower on a standard repayment plan will see their monthly payments drop by around $200 to $300 a month," Powell said. As part of the president's debt cancelation, student loan payments were paused for "one final time" through the end of 2022.

☆ A conservative group is suing to block Biden's student debt forgiveness, but it faces legal hurdles
▼ + stars: | 2022-09-27 | by ( Juliana Kaplan | ) www.businessinsider.com time to read: +4 min

The Pacific Legal Foundation announced Tuesday it was filing suit against student loan relief. "Congress did not authorize the executive branch to unilaterally cancel student debt," Caleb Kruckenberg, an attorney at Pacific Legal Foundation, said in a press release. The nonpartisan Congressional Budget Office has estimated that, according to projections spanning the next 30 years, student loan relief will cost $400 billion. "The claim is baseless for a simple reason: No one will be forced to get debt relief. Because opponents of the debt relief plan are trying anything they can to stop this program that will provide needed relief to working families."

Since January, the average 30-year fixed mortgage rate has increased by over three percentage points, according to Freddie Mac. See more mortgage rates on Zillow Real Estate on ZillowMortgage calculatorUse our free mortgage calculator to see how today's mortgage rates will affect your monthly and long-term payments. Mortgage rates started ticking up from historic lows in the second half of 2021 and have increased significantly so far in 2022. Inflation remains elevated, but has started to slow, which is a good sign for mortgage rates and the broader economy. What is a good mortgage rate?

However, closing a student-loan account after loan forgiveness may ding your credit score initially. What does student-loan forgiveness mean for your credit score? Additionally, your credit mix accounts for 10% of your credit score and is made up of both revolving and installment credit. Your payment history makes up a significant percentage of your credit score, and lenders prefer to see consistent and reliable past payments. The bottom lineWhile some borrowers may see their credit score take a short-term hit after student-loan forgiveness, the financial benefits far outweigh any negative impact.

Persons: Biden, —, Biden's, Chris Ebeling, Ebeling, you've, Gabe Krajicek, Kasasa Organizations: Service, Pell, Federal, Citizens Bank

☆ Student loan payments are set to resume in September — should you pay now or wait for loan forgiveness?
▼ + stars: | 2022-08-04 | by ( Jordan Hart | ) www.businessinsider.com time to read: +4 min

Borrowers who can afford to pay say it's a 'big deal' to chip away at their principal loan balance. But it's unclear what the government's next steps will be on loan debt and time is running out for students. "One recent study shows that student loan borrowers were more likely to have taken out a first mortgage while payments have been frozen compared with those who have no student loans," Leondis wrote. With the current interest rate at zero, student loan repayments would go directly toward the borrower's principal balance. One Tiktoker who typically posts about student loan forgiveness has advised viewers to "pay attention to communication from (their) loan servicer" in the coming weeks.

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