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The Education Department released its final version of the gainful employment rule. AdvertisementAdvertisementPresident Joe Biden's Education Department has released its final rule to keep student debt from spiraling after a borrower graduates. On Wednesday, the Education Department announced its final version of the gainful employment rule. However, advocates and Democratic lawmakers have previously pushed for a strengthened gainful employment rule to protect borrowers. This includes the most effective gainful employment rule in history," Cardona said.
Persons: , Joe Biden's, Barack Obama, Donald Trump, Education James Kvaal, Jason Altmire, Altmire, Aaron Ament, Miguel Cardona, " Cardona Organizations: Education Department, Service, Joe Biden's Education Department, Education, Education Colleges, Universities —, Department, Democratic, Student Defense
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
WASHINGTON (AP) — President Joe Biden’s education chief said he’s open to using “whatever levers” are available — including federal money — to discourage colleges from giving admissions preference to the children of alumni and donors. He made the remark when asked about using federal money as a carrot or rod on legacy admissions. By banning affirmative action but allowing legacy preferences, critics say the court left admissions even more lopsided against students of color. Political Cartoons View All 1173 ImagesThe agency recently opened an investigation at Harvard University after a federal complaint alleged that legacy admissions amount to racial discrimination. Without action, Cardona warned that the nation could face the same setbacks seen in California after it ended affirmative action in 1996.
Persons: Joe Biden’s, he’s, , Miguel Cardona, Cardona, , ” Cardona, there’s, , James Murphy, they’ve, — Cardona, Ron DeSantis, can’t, ” — Cardona Organizations: WASHINGTON, Associated Press, Education, The, Department, Harvard University, Central Connecticut State University, Democratic, China, Education Department, Reform, Republican Gov, ” Conservatives, Carnegie Corporation of New, AP Locations: California, Black, Florida, Carnegie Corporation of New York
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
GOP lawmakers introduced a bill to overturn Biden's new SAVE income-driven repayment plan. Borrowers can now apply for the SAVE plan before bills become due next month. It also estimated that an additional 1 million low-income borrowers would experience that benefit, and the plan would save all other borrowers at $1,000 a year compared to other income-driven repayment plans. However, the Republican lawmakers seeking to overturn that plan argued it's an overreach of authority and would cost taxpayers. While Republicans opposed that relief, as well, Biden is moving forward with implementing the new repayment plan as borrowers begin to face another monthly bill.
Persons: Joe Biden's, Bill Cassidy, Sen, John Thune, John Cornyn, Cassidy, Biden, Lisa McClain, Miguel Cardona, we're Organizations: Service, Republican, GOP, Education Department Locations: Wall, Silicon, Washington
Interest started to grow on federal borrowers' student-loan balances again on Friday. This signified the end of the student-loan payment pause that began in March 2020. download the app Email address By clicking ‘Sign up’, you agree to receive marketing emails from Insider as well as other partner offers and accept our Terms of Service and Privacy PolicyAdvertisementAdvertisementAfter over three years of relief, student-loan borrowers' balances are once again starting to grow. On Friday, interest was turned back on for federal borrowers' accounts, marking the end of the student-loan payment pause that began in March 2020. First implemented by former President Donald Trump, the payment pause was intended to give borrowers financial relief during the pandemic.
Persons: Donald Trump, Joe Biden, Miguel Cardona, Biden Organizations: Service, Education Department, Student, Federal, Aid, Management, Higher Locations: Wall, Silicon, COVID
The Education Department announced its latest step in the broad student-debt relief process. After the Supreme Court struck down Biden's first plan to cancel student debt broadly for borrowers using the HEROES Act of 2003, his Education Department announced it would be attempting relief using a different law: the Higher Education Act of 1965. "When the Supreme Court ruled against the Biden-Harris Administration's student debt relief plan, we did not waste a moment opening up a new pathway to debt relief," Education Secretary Miguel Cardona said in a statement. Since borrowers will not be entering repayment with broad relief, the department also announced a 12-month "on-ramp" period during which missed payments will not be reported to credit agencies, but interest will still accrue during that time. However, while the department is moving forward with the broad debt relief process, its future is uncertain due to conservative opposition — and potential legal challenges that could once again halt relief for borrowers.
Persons: Joe Biden, Harris, Miguel Cardona Organizations: Education Department, Service, Higher, Biden, Loan, Black Colleges, Universities, Federal Family Education Locations: Wall, Silicon
Since then, it faced legal hurdles, and the Supreme Court struck the relief down in June. Since he took office, his administration was weighing its options to get relief to borrowers, and Biden himself even questioned his authority to enact broad debt relief. About a month after the debt relief announcement, applications opened for federal borrowers to apply for an up to $20,000 reduction to their balances. It did go all the way to the Supreme Court and was deemed ineligible. Even with the Supreme Court ruling, Biden's administration has started implementing other reforms for borrowers, along with a new process for broad student-loan forgiveness using a different law.
Persons: Biden, Joe Biden's, Miguel Cardona, Harris, Biden's, it's, Joe Biden, Demetrius Freeman, Bharat Ramamurti, Chuck Schumer Organizations: Service, Biden, Social, Education Department, Republican, Supreme, Here's, White, Washington, Getty, Higher, National Economic Council Locations: Wall, Silicon
Biden officially launched the new income-driven student-loan repayment plan, known as the SAVE plan. On Tuesday, Biden's administration announced that student-loan borrowers can now officially enroll in the Saving on a Valuable Education, or SAVE, plan, after it began beta testing the program in July. "The SAVE plan is a sea change for students, making college loans far more affordable than ever before," Under Secretary of Education James Kvaal said in a statement. Borrowers who are currently enrolled in the REPAYE plan will automatically have their monthly payments adjusted to the new SAVE plan before payments restart." AdvertisementAdvertisement"The SAVE plan is a game changer," Education Secretary Miguel Cardona told reporters on a Monday press call.
Persons: Biden, Joe Biden, Biden's, Education James Kvaal, Miguel Cardona, we're Organizations: Service, Valuable Education, Education Department, SAVE, Education, Federal, Internal Revenue Service, NAACP Locations: Wall, Silicon
Some student-loan borrowers are running into hurdles leading up to the payment resumption. Insider spoke to borrowers with inaccurate monthly statements and incomplete debt relief. Jess's incorrect monthly payment statement is just one of the challenges borrowers are facing as President Joe Biden's Education Department and federal student-loan companies work to transition millions of borrowers back into repayment. This announcement was part of the department's one-time account adjustment to get relief to borrowers who have reached the repayment threshold. "Right now, House Republicans are pursuing an appropriations bill that cuts $22.5 BILLION from education," Education Secretary Miguel Cardona wrote on X last month.
Persons: Jess, couldn't, Jess —, , she's, there's, Joe Biden's, Scott Buchanan, servicers —, Buchanan, we've, Karin Smith, Smith, I'm, It's, haven't, Miguel Cardona Organizations: Service, Joe Biden's Education Department, Student Loan, , Education Department, The Education Department, House Republicans, Republican Locations: Wall, Silicon
[1/2] Students and pedestrians walk through the Yard at Harvard University in Cambridge, Massachusetts, U.S., March 10, 2020. Democratic President Joe Biden's administration had defended that long-standing practice in the court cases against Harvard University and the University of North Carolina. The ruling left some questions unanswered, and more legal challenges by conservative activists are expected targeting diversity initiatives in education and corporate America. Education Secretary Miguel Cardona said promoting campus diversity remained important even after the ruling. But the departments said universities may consider how race has affected an applicant's life, such as in an applicant's essay.
Persons: Brian Snyder, Biden, Joe Biden's, Miguel Cardona, , Nate Raymond, Jarrett Renshaw, Jonathan Oatis Organizations: Harvard University in, REUTERS, U.S, Supreme, Education, Justice, Democratic, Harvard University, University of North, America, Justice Department, Department's, Civil, Harvard, Thomson Locations: Harvard University in Cambridge , Massachusetts, U.S, University of North Carolina, Boston, Washington
The Biden administration, in its first guidance on how to handle the Supreme Court’s ban on affirmative action, offered colleges and universities on Monday something of a road map for how to achieve diverse classes while abiding by the court decision. The administration said schools still had broad latitude when it comes to expanding its pool of applicants, through recruitment, and retaining underrepresented students through diversity and inclusion programs, like affinity clubs. Education Secretary Miguel Cardona, in a news briefing, made it clear that the administration faced the task of enforcing a court ruling that it strongly disagreed with. “This is a moment of great urgency in higher education,” Dr. Cardona said. Alluding to how the enrollment of students of color had initially plunged in states that have banned affirmative action, he said, “We cannot afford that kind of backsliding on a national scale.”
Persons: Miguel Cardona, Dr, Cardona, Organizations: Biden, Education
The Biden administration released new guidance Monday on how colleges can "lawfully achieve a diverse student body" in the wake of the Supreme Court's ruling striking down affirmative action. Experts predicted the Supreme Court's ruling would encourage colleges to put more weight on students' household income and their regional background to diversify their student bodies. Schools may also rely less on standardized test scores or even eliminate SAT and ACT requirements, which have reinforced race gaps, other studies show. Colleges are likely to add questions along these lines to their admissions applications, according to higher education expert Mark Kantrowitz, and more may also end the policy of giving preferential treatment to legacy students, which is increasingly under fire after the ruling on affirmative action. Subscribe to CNBC on YouTube.
Persons: Harris, Education Miguel Cardona, John Roberts, Mark Kantrowitz Organizations: Biden, U.S . Department of Education, Supreme, Constitution, Civil, Harris Administration, Education, Finance, ACT, Education Department, CNBC, YouTube Locations: U.S
On Tuesday, the White House convened school administrators, educators and companies to explore how best to protect schools and students' information from cyberattacks. At least eight K-12 school districts across the country experienced significant cyberattacks in the last academic year, the White House said, leading to disruptions in learning. The White House announced a series of actions from federal agencies and commitments from companies to help school districts secure their digital information. Amazon Web Services committed $20 million to fund a cyber grant program for school districts and state departments of education. It will also conduct free security reviews for U.S. education technology companies that provide "mission-critical applications" for K-12 schools.
Persons: Biden, Miguel Cardona, Cardona, Cloudflare, PowerSchool Organizations: White, Government, Office, White House, Federal Communications Commission, Universal Service Fund, Infrastructure Security Agency, Federal Bureau of Investigation, National Guard Bureau, CNBC, Web Services, Google Locations: cyberattacks, U.S
In October, student-loan borrowers will start making payments again. The Education Department announced a number of steps to ease the transition back into repayment. In March 2020, former President Donald Trump first implemented the student-loan payment pause, with waived interest, to give millions of federal borrowers financial relief during the pandemic. An Education Department spokesperson confirmed in June that there is no leeway with that provision. "Student loan interest will resume starting on September 1, 2023, and payments will be due starting in October," a department spokesperson said.
Persons: Donald Trump, Joe Biden, Biden, , Massachusetts Sen, Elizabeth Warren, New Jersey Sen, Bob Menendez, servicers, Virginia Foxx, Sen, Bill Cassidy —, doesn't, Cassidy, we'll, Miguel Cardona Organizations: The Education Department, Service, Federal, An Education Department, Education Department, Higher, SAVE, Democratic, House, Department Locations: Wall, Silicon, Massachusetts, New Jersey
U.S. President Joe Biden, joined by Education Secretary Miguel Cardona, speaks on student loan debt in the Roosevelt Room of the White House August 24, 2022 in Washington, DC. Alex Wong | Getty Images News | Getty ImagesHow the SAVE student loan plan worksInstead of paying 10% of their discretionary income a month toward their undergraduate student debt under the previous Revised Pay As You Earn Repayment Plan, or REPAYE, plan, borrowers will eventually be required to pay just 5% of their discretionary income under the SAVE plan. "The SAVE plan is very generous to borrowers, almost like a grant after the fact," said higher education expert Mark Kantrowitz. Still, the Education Department says borrowers who sign up for the plan this summer will have their application processed before student loan repayments resume in October. How to apply for SAVE, and what info you needYou can apply for SAVE directly on the Education Department website.
Persons: Joe Biden, Education Secretary Miguel Cardona, Alex Wong, Mark Kantrowitz, Kantrowitz Organizations: Education Secretary, Getty, SAVE, Education Department Locations: Washington , DC
The Supreme Court’s decision to effectively end race-conscious admissions in higher education last month was historic in its own right, removing a tool that the nation’s colleges have used for decades to increase racial diversity on their campuses. But what started with affirmative action has morphed into a far broader reconsideration of fairness and privilege in college admissions and what it means for American higher education. On Tuesday, the Education Department announced that it had opened a civil rights investigation into Harvard University’s admissions preferences for the relatives of alumni and wealthy donors. And at what the department billed as a “National Summit on Equal Opportunity in Higher Education” in Washington on Wednesday, more than 100 academics, government officials and education administrators focused on how much is now up for grabs well beyond affirmative action. “We come together today at a turning point in higher education — perhaps in all of education,” the education secretary, Miguel Cardona, said in his keynote address.
Persons: Miguel Cardona, Organizations: Education Department, Harvard, Higher Locations: Washington
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,
House Republicans are proposing cutting funding for Federal Student Aid by $265 million. Last week, Republicans on the House Appropriations Committee released a series of bills for funding federal agencies through fiscal year 2024. "Right now, House Republicans are pursuing an appropriations bill that cuts $22.5 BILLION from education," Education Secretary Miguel Cardona wrote on Twitter. Cutting funding could pose significant challenges to borrowers, along with the operations of Federal Student Aid. Some Democratic lawmakers have also expressed concerns about a lack of funding for Federal Student Aid.
Persons: it's, Joe Biden's, Biden, Miguel Cardona, Jared Bass, Federal Student Aid . Massachusetts Sen, Elizabeth Warren, Tammy Baldwin, Shelley Moore Capito Organizations: Republicans, Federal, Aid, Service, Republican, Labor, Health, Human Services, Education, House Republicans, Twitter, Federal Student Aid, Public, Center, American Progress, Democratic, Federal Student Aid ., Department of Education, Education Department Locations: Wall, Silicon, Federal Student Aid . Massachusetts
Demetrius Freeman/The Washington Post via Getty ImagesHow are the two loan forgiveness actions different? There are four of these plans, which aim to make loan payments more affordable for lower earners. That law gave the president power to revise student loan programs during national emergencies. The Trump administration had leveraged the Heroes Act to implement a student loan payment pause at the onset of the Covid-19 pandemic. However, Congress has already authorized loan forgiveness relative to income-driven repayment plans, dating to when it created them in the 1990s.
Persons: Joe Biden, Education Miguel Cardona, Demetrius Freeman, , Biden, hasn't, Virginia Foxx, Abby Shafroth, who've, Trump, Shafroth, Kantrowitz Organizations: U.S, Education, Washington, Getty, White, U.S . Department of Education, Department of Education, National Consumer Law Center, National Consumer Law, of Education
Sen. Elizabeth Warren wants Biden to consider actions to help student-loan borrowers who miss payments. Warren's suggestions include getting rid of student debt for borrowers in long-term default. To help those in default, the department has already announced a "Fresh Start" program that will restore 7.5 million borrowers behind on payments to good standing once payments resume. Still, as Warren wrote, borrowers might still "fall through the cracks" once payments resume — and wants Biden to reform the process for defaulted borrowers. "I want to reassure you — the Biden-Harris team is not done fighting for student loan borrowers or for working families," Cardona recently wrote on Twitter.
Persons: Sen, Elizabeth Warren, Biden, Massachusetts Sen, Joe Biden, — Warren, Warren, Secretary Miguel Cardona, Biden's, Miguel Cardona, Harris, Cardona Organizations: Service, Education Department, Department, Secretary, Higher, White, Biden, Twitter Locations: Wall, Silicon, Massachusetts
Borrowers will be eligible for forgiveness if they have made either 20 or 25 years of monthly IDR payments, the department said. The IDR program caps payment requirements for lower-income borrowers and forgives their remaining balance after a set number of years. Biden has said he will pursue new measures to provide student loan relief to Americans after the Supreme Court blocked his plan to cancel hundreds of billions of dollars in debt. The Education Department has launched a regulatory "rulemaking" process to pursue his $430 billion loan relief plan. In a statement, Vice President Kamala Harris said the administration "will continue to fight to make sure Americans can access high-quality postsecondary education without taking on the burden of unmanageable student loan debt."
Persons: Joe Biden's, Read, IDR, Education Miguel Cardona, Biden, Kamala Harris, Juby Babu, Rami Ayyub, Christina Fincher, Chizu Nomiyama, Frances Kerry Organizations: Education Department, Education, Thomson Locations: Washington , U.S, WASHINGTON, Bengaluru, Washington
The Biden administration will forgive $39 billion in student debt for 804,000 borrowers, it said on Friday. The announcement comes weeks after the Supreme Court blocked a wider plan to forgive student debts. "For far too long, borrowers fell through the cracks of a broken system that failed to keep accurate track of their progress towards forgiveness," Education Secretary Miguel Cardona said. "Administrative failures" led to borrowers being denied the relief they were eligible for under their repayment plans, the Education Department said. "For far too long, borrowers fell through the cracks of a broken system that failed to keep accurate track of their progress towards forgiveness," Education Secretary Miguel Cardona said in a written statement.
Persons: Biden, Miguel Cardona, they've Organizations: Service, Education Department Locations: Wall, Silicon
Biden administration forgives $39 bln in student debt- CNBC
  + stars: | 2023-07-14 | by ( ) www.reuters.com   time to read: 1 min
July 14 (Reuters) - U.S. President Joe Biden's administration will automatically cancel $39 billion in student debt for more than 800,000 borrowers, CNBC reported on Friday. "For far too long, borrowers fell through the cracks of a broken system that failed to keep accurate track of their progress towards forgiveness," CNBC quoted U.S. Secretary of Education Miguel Cardona as saying. Reporting by Juby Babu in Bengaluru, editing by Christina FincherOur Standards: The Thomson Reuters Trust Principles.
Persons: Joe Biden's, Education Miguel Cardona, Juby Babu, Christina Fincher Organizations: CNBC, Education, Thomson Locations: Bengaluru
More than 800,000 borrowers will have $39 billion in federal student loan debt eliminated under a government effort to remedy years of mistakes by the loan servicers that collect payments on the government’s behalf. The relief will go to those with federal loans owned directly by the Education Department and who enrolled in income-driven repayment plans. Under those plans, borrowers must make payments for a term that is typically 20 or 25 years. More than eight million people use income-driven repayment plans, but for decades, many of the companies that bill borrowers made extensive mistakes in tracking payments and in guiding borrowers through the payment process. “For far too long, borrowers fell through the cracks of a broken system,” Miguel Cardona, the education secretary, said on Friday.
Persons: ” Miguel Cardona Organizations: Education Department
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