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☆ What student loan borrowers need to know about the 2023 tax season
▼ + stars: | 2023-03-21 | by ( Annie Nova | ) www.cnbc.com time to read: +2 min

Prostock-studio | Istock | Getty ImagesYou probably can't claim a student loan interest deductionBefore the Covid pandemic, nearly 13 million taxpayers took advantage of the student loan interest deduction, which allows borrowers to deduct up to $2,500 a year in interest payments they've made on their private or federal student loans. "You can claim the student loan interest deduction based only on amounts actually paid," Kantrowitz said. The break is only for payments to interest, Kantrowitz said, and interest has been suspended now for years. The best way to determine if you have potential interest to claim is to contact your loan servicer, said Betsy Mayotte, president of The Institute of Student Loan Advisors. Your lender reports your interest payments over a certain amount to the IRS on a tax form called a 1098-E, and should provide you with a copy, too.

☆ When Will Student Loan Payments Resume?
▼ + stars: | 2023-03-06 | by ( ) www.wsj.com time to read: +7 min

When will student loan payments resume? While student loan payments have been put on ice since March of 2020, you may have to start paying them back again this summer or fall. Student loan payments are set to resume 60 days after June 30, 2023, or 60 days after the Court’s decision, whichever comes first. We will notify borrowers before payments restart.”That means your federal student loan payments will be due at the end of August 2023 or sooner. Don’t expect your student loan payments to automatically debit from your account, though.

☆ What to do if Supreme Court strikes down Biden's student loan forgiveness plan
▼ + stars: | 2023-03-06 | by ( Annie Nova | ) www.cnbc.com time to read: +5 min

Demonstrators in favor of canceling student debt gather outside the U.S. Supreme Court in Washington, D.C., on Feb. 28, 2023. Bloomberg | Bloomberg | Getty ImagesKeep your payments on holdThe Covid pandemic-era policy suspending federal student loan payments and the accrual of interest is still active. Those are the ideal ways to postpone your federal student loan payments, because interest doesn't accrue. For example, full-time teachers who work for five consecutive years in a low-income school may be eligible for up to $17,500 in loan forgiveness under the Teacher Loan Forgiveness Program. And lawyers in Texas who work for specific legal aid programs may be eligible for the Texas Student Loan Repayment Assistance Program.

☆ Biden administration lawyer may have saved student loan forgiveness plan at Supreme Court
▼ + stars: | 2023-03-01 | by ( Annie Nova | ) www.cnbc.com time to read: +1 min

The government's top Supreme Court lawyer may have saved President Joe Biden's $400 billion student loan forgiveness plan from what experts considered all-but-certain defeat. Experts lobbed praise on Solicitor General Elizabeth Prelogar, the lawyer who represented the Biden administration in front of the nine justices on Tuesday. "The Biden administration now seems more likely than not to win the cases," said higher education expert Mark Kantrowitz. University of Chicago Illinois Law Professor Steven Schwinn agreed: "Prelogar knocked it out of the park." On Wednesday, Fordham Law professor Jed Shugerman tweeted that he remains "struck by SG Elizabeth Prelogar's brilliant performance."

Around 40% of outstanding federal student loan debt is now taken on post-college for master's and PhD programs. The average student debt balance among parents was more than $35,000 in 2018-19, up from around $5,000 in the early 1990s. Meanwhile, the private student loan market has grown more than 70% over the last decade, according to the Student Borrower Protection Center. Americans now owe more in private student loans than they do for past-due medical debt or payday loans. Every year millions of new students are pumped into the student loan system while current borrowers struggle to exit it.

☆ When will student loan payments restart? What borrowers need to know
▼ + stars: | 2023-02-21 | by ( Annie Nova | ) www.cnbc.com time to read: +2 min

Skynesher | E+ | Getty ImagesRestart depends on Supreme Court decision timingWhen student loan payments restart depends on how long the Supreme Court justices take to issue a decision on the president's plan, said higher education expert Mark Kantrowitz. Servicers will determine when your payment is dueFederal student loan payments have been on pause since March 2020, when the coronavirus pandemic first hit the U.S. and crippled the economy. "They're not going to restart everybody's student loan payments on the same day, everywhere, all at once," he said. Two of these lawsuits — which the Supreme Court has agreed to hear oral arguments for — have been successful in at least temporarily halting the relief. Sixty days will be enough to forgive student loan debt if the president's plan survives.

☆ Biden administration is making a big change to student loan repayment. What borrowers need to know
▼ + stars: | 2023-02-15 | by ( Annie Nova | ) www.cnbc.com time to read: +3 min

Currently, after 20 years of payments on undergraduate student loans, any leftover debt is forgiven on the existing REPAYE Plan. However, under the Biden administration's proposal, those with original student loan balances of $12,000 or less may get their loans forgiven after just 10 years. watch nowPreviously, a borrower who made $40,000 a year would have a monthly student loan payment of around $151. The new option should be available to borrowers with undergraduate and graduate student loans, although undergraduate borrowers will have lower payments. Once the new REPAYE Plan is available, borrowers can call their student loan servicer to enroll in the option, or apply at StudentAid.gov.

☆ Here are the top 10 cheapest four-year public colleges for in-state students
▼ + stars: | 2023-02-08 | by ( Jessica Dickler | ) www.cnbc.com time to read: +1 min

If picking a college comes down to the financial bottom line, then an in-state public school can look like a particularly good deal. "In-state tuition is half to two-thirds lower than out-of-state," said higher education expert Mark Kantrowitz and author of "How to Appeal for More College Financial Aid." These days, that goes a long way as students and their families grow increasingly wary of the cost of a degree and hefty student loan debt that often comes with it. More from Personal Finance:How to decide if you should go back to schoolMore middle-class Americans struggle to make ends meetBiden’s student loan forgiveness plan heads to Supreme CourtTuition and fees plus room and board for students at four-year private colleges averaged $53,430 in the 2022-23 school year, according to the College Board. In comparison, in-state students at four-year public college paid $23,250, on average; for out-of-state students, it was $40,550Over the last decade, tuition and fees actually fell by 1% at public four-year institutions while rising by 6% at private, four-year schools, the College Board found.

☆ Supreme Court challenges to Biden student loan plan hinge on overreach, financial harm
▼ + stars: | 2023-02-02 | by ( Annie Nova | ) www.cnbc.com time to read: +3 min

The law is a product of the 9/11 terrorist attacks, and an earlier version of it provided relief to federal student loan borrowers impacted by the attacks. However, the states counter that the Heroes Act allows the Education secretary only to modify the federal student loan system to keep certain borrowers from being in a worse-off position with their loans because of a national emergency. In other words, higher education expert Mark Kantrowitz said, the states are asserting that Biden is using Covid as an excuse to pass his plan. The states also argue that Biden's plan would cause financial harm to their states, including a loss of profits for the companies that service federal student loans. The attorneys also denied the claim that the Biden administration was overstepping its authority, laying out the White House's argument that it is acting within the law under the Heroes Act of 2003.

☆ Some borrowers may qualify for a student loan interest deduction, despite payment pause
▼ + stars: | 2023-01-31 | by ( Annie Nova | ) www.cnbc.com time to read: +1 min

Fewer borrowers will be able to claim the student loan interest deduction for 2022, with federal loan payments on hold for the duration of the year. However, since March 2020, the U.S. Department of Education has allowed most federal student loan borrowers to pause their monthly bills without interest accruing. As a result, most people with federal student loans haven't made a payment since, and don't qualify for the deduction. If you owe student loans that haven't been eligible for the government's break, including commercially-held Federal Family Education Loans (FFEL) or any private student loans, you may have made interest payments that can be deducted. The best way to determine if you have potential interest to claim is to contact your loan servicer, said Betsy Mayotte, president of The Institute of Student Loan Advisors.

☆ What happens if the Supreme Court strikes down student loan forgiveness? Here are 3 predictions
▼ + stars: | 2023-01-29 | by ( Annie Nova | ) www.cnbc.com time to read: +3 min

Despite student loan borrowers being offered forbearances during previous natural disasters, Kvaal wrote, default rates still skyrocketed when payments resumed. ″[T]he one-time student loan debt relief program was intended to avoid" skyrocketing default rates, Kvaal added. "These student loan borrowers had the reasonable expectation and belief that they would not have to make additional payments on their federal student loans," Kvaal said. That law allows the Education Department to make modifications to federal student loan programs during national emergencies. 'A disastrous blow to Black Americans'The country's $1.7 trillion student loan crisis has hit Black Americans especially hard.

☆ How Charlie Javice's Frank Sale to JP Morgan Wound up in Allegations of Fraud
▼ + stars: | 2023-01-21 | by ( Katherine Long | Jack Newsham | ) www.businessinsider.com time to read: +21 min

Her financial aid startup, Frank, was featured in the New York Times, CNBC and Wall Street Journal. After leaving the University of Pennsylvania's Wharton business school, Javice traded on her reputation, bolstered by glowing profiles, as a successful entrepreneur. In a 2018 interview with Insider, Javice claimed Frank secured an average of $28,000 for its users, and was helping students get "thousands off their tuition." "Charlie's first company fizzled after 18 months, so after losing all her investors' money, she convinced every one of them to fund her next company, Frank." At Frank, Javice admitted she sometimes painted a more positive picture of the company's health than was supported by the facts.

☆ More student loan borrowers may have $0 payments under Biden's new plan. What you need to know
▼ + stars: | 2023-01-17 | by ( Annie Nova | ) www.cnbc.com time to read: +4 min

Silverkblack | Istock | Getty ImagesIn the new student loan repayment plan proposal rolled out this month by the Biden administration, more borrowers could see their monthly payments drop to $0. The new REPAYE plan could officially be available July 1, 2024, according to higher education expert Mark Kantrowitz. Yet under the new proposal, those who have fallen behind may be able to sign up for the income-based repayment plan, another one of the income-driven repayment plan options. Borrowers will need to enrollOnce the new REPAYE plan is available, borrowers can call their student loan servicer to enroll in the option, or apply at StudentAid.gov. The pandemic-era relief policy suspending federal student loan bills and the accrual of interest has been in effect since March 2020.

☆ JPMorgan says college-planning firm it bought lied about its scale. Consumers may have been misled, too
▼ + stars: | 2023-01-13 | by ( Annie Nova | ) www.cnbc.com time to read: +2 min

watch nowIn response, the FTC sent a warning letter to Frank, pointing out a number of claims on its website could be "unlawfully misleading consumers." Besides the problems flagged by government officials, higher education expert Mark Kantrowitz said he noticed other questionable claims made by Frank. At one point, the company said it could complete people's Free Application for Federal Student Aid, or FAFSA, in just four minutes. "If it's too good to be true, it probably is," Kantrowitz said. Student loan, financial aid help is available for free

☆ Before JPMorgan accused Charlie Javice of inventing millions of fake customers, the Frank founder settled with the federal government over accusations she was misleading students
▼ + stars: | 2023-01-12 | by ( Katherine Long | ) www.businessinsider.com time to read: +5 min

Visitors to Frank's website could get the mistaken impression that the company was affiliated with the federal government, the Department of Education said in 2017. The Department argued that Frank's website was "likely to confuse consumers." The Department stated in a cease and desist letter that Frank could be misleading applicants looking for the government's official FAFSA website. On social media and elsewhere, Frank sometimes referred to the form as "Frank's FAFSA," according to the settlement. In numerous media interviews, including with Insider, Javice has cast herself as a mold-breaking entrepreneur.

☆ Biden administration proposes new student loan repayment plan that could cut some payments in half
▼ + stars: | 2023-01-10 | by ( Annie Nova | ) www.cnbc.com time to read: +1 min

The U.S. Department of Education proposed regulations Tuesday that would reduce the monthly bills for certain federal student loan borrowers. Currently, the most affordable income-driven repayment plan requires borrowers to pay 10% of their discretionary income each month to their student debt. Payment plans based on student loan borrowers' income date back to the mid '90s. They provide an alternative to the standard repayment plan that spreads debt obligations evenly over a decade, or 120 months. Income-based plans typically trade lower payments for a longer repayment timeline, with any remaining balance forgiven.

☆ Here's how to get your student loans forgiven — even if Biden's plan falls through
▼ + stars: | 2023-01-08 | by ( Annie Nova | ) www.cnbc.com time to read: +3 min

"Income-driven repayment plans are also student loan forgiveness plans," Kantrowitz said. The best way to find out if your job qualifies as public service is to fill out a employer certification form. Full-time teachers who work for five consecutive years in a low-income school may be eligible for up to $17,500 in loan forgiveness under the Teacher Loan Forgiveness Program. The Nurse Corps Loan Repayment Program allows certain nurses to get up to 85% of their student debt cancelled. Meanwhile, there are numerous state-level student loan forgiveness programs.

☆ Here are some smart moves borrowers should make while the fate of student loan forgiveness is still up in the air
▼ + stars: | 2022-12-29 | by ( Annie Nova | ) www.cnbc.com time to read: +4 min

Creatas | Creatas | Getty ImagesIt's been a strange time for people with federal student loans. (The Supreme Court will hear oral arguments at the end of February.) Those are the ideal ways to postpone your federal student loan payments, because interest doesn't accrue. Now that borrowers know how much in loan cancellation is on the table — if the president's policy survives the Supreme Court — borrowers may want to consider the option, Kantrowitz said. Betsy Mayotte president of The Institute of Student Loan Advisors

☆ Here are the people who will lose out most if student loan forgiveness falls through
▼ + stars: | 2022-12-28 | by ( Annie Nova | ) www.cnbc.com time to read: +2 min

People of colorThe student debt crisis is cited as a main factor for the wide racial wealth gap in the U.S. today. Black college graduates owe an average $7,400 more than their white peers, a Brookings Institution report found. And that inequity only gets worse with time: Black college students owe more than $52,000 four years after graduation, compared with around $28,000 for the average white college graduate. WomenWomen were widely recognized as the biggest winner of Biden's student loan forgiveness plan, since they owe two-thirds of the country's outstanding student debt. "Women will be the most affected if loan forgiveness fails," Kantrowitz said.

☆ 3 big questions the Supreme Court is likely to ask when determining the fate of student loan forgiveness
▼ + stars: | 2022-12-27 | by ( Annie Nova | ) www.cnbc.com time to read: +3 min

Protesters calling for student debt relief demonstrate outside the Republican National Committee's Washington, D.C. offices on Nov. 18, 2022. The main obstacle for those hoping to challenge student loan forgiveness has been finding a plaintiff who can prove they have been harmed by the policy. Higher education expert Mark Kantrowitz doesn't believe any of the plaintiffs have successfully proven injury by student loan forgiveness. "The U.S. Supreme Court can decide to consider the case on the merits regardless of legal standing," Kantrowitz said. Tribe expects that the justices will visit the so-called major questions doctrine in deciding the fate of Biden's student loan forgiveness plan.

☆ Pell Grants could rise to a maximum $7,395 next year, in the biggest increase in over a decade
▼ + stars: | 2022-12-21 | by ( Annie Nova | ) www.cnbc.com time to read: +3 min

Olelole | E+ | Getty ImagesAs part of its massive $1.7 trillion spending package for 2023, Congress is planning to up the maximum annual Pell Grant award to $7,395 — a $500 increase from this school year. President Joe Biden had previously called to raise the Pell Grant by even more, to a maximum allotment of $8,670 in 2023, and has said he wants to see the payments double by 2029. Pell Grants are one of the biggest sources of financial aid available to college students, and more than 6 million students received them in 2020. Each year, Congress decides how much to allocate to the maximum Pell Grant, and in some years it has reduced the payment. There's a limit to how many Pell Grants you can getCollege students typically can receive the grant for up to six years.

☆ Student loan forgiveness is headed to the Supreme Court. What that means for the payment pause
▼ + stars: | 2022-12-16 | by ( Annie Nova | ) www.cnbc.com time to read: +5 min

The pandemic-era relief policy suspending federal student loan bills and the accrual of interest has been in effect since March 2020. That development is why borrowers have gotten even more time without a student loan bill. Student loan bills could resume as soon as May 1The Education Department has left things a little open-ended when it comes to the timing of federal student loan payments resuming. During the extended payment pause, however, the Education Department is also ceasing all collection activity, it said. And while interest rates on federal student loans are at zero, it's also a good time to make progress paying down more expensive debt, experts say.

☆ 360,000 student loan borrowers received $24 billion in forgiveness from fix to Public Service Loan Forgiveness
▼ + stars: | 2022-12-08 | by ( Annie Nova | ) www.cnbc.com time to read: +1 min

In October 2021, the Biden administration announced a one-year opportunity for student loan borrowers pursuing the Public Service Loan Forgiveness to get closer to being debt-free. Signed into law by then-President George W. Bush in 2007, the Public Service Loan Forgiveness program allows certain nonprofit and government employees to have their federal student loans canceled after 10 years, or 120 payments. More from Personal Finance:Biden's student loan forgiveness plan is on holdInflation-adjusted college costs declineThese colleges promise no student debtThe average borrower got more than $67,000 in student debt cleared. "These borrowers previously faced obstacles based on frustrating technicalities despite having worked in a qualifying public service job," Kantrowitz said. The reforms under the Biden administration included reassessing borrowers' timelines and counting some payments that were previously ineligible because of a borrower's loan type or repayment plan.

☆ Student loan payments may not resume until August. Here's what borrowers need to know
▼ + stars: | 2022-11-26 | by ( Annie Nova | ) www.cnbc.com time to read: +8 min

With so much still up in the air, the Biden administration has pushed back the due date on student loan bills again. With previous extensions of the payment pause, the Education Department provided one date for when student loan bills would resume. Betsy Mayotte, president of The Institute of Student Loan Advisors, warned borrowers to first understand the federal protections they're giving up before they refinance. "Refinancing can generate a lower interest rate than federal student loan rates," Mayotte said. Could it make sense to still pay my student loans?

In the past two months, student loan forgiveness has been the target of two high-profile lawsuits. Meanwhile, the Biden administration responded by extending the student loan payment pause yet again. What's happening to student loan forgiveness? Since the status of student loan forgiveness remains in the air, the Biden administration has extended the student loan payment pause until the Supreme Court makes a ruling. Select ranked SoFi Student Loan Refinancing and Earnest Student Loan Refinancing as some of the best companies for refinancing student loans.

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