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☆ What borrowers need to know while student loan forgiveness is in limbo
▼ + stars: | 2022-11-21 | by ( Annie Nova | ) www.cnbc.com time to read: +2 min

Loan payment pause may be extended againThe Biden administration is reported to be considering extending the payment pause on student loan bills yet again. Indeed, a top official at the Education Department recently said student loan default rates could dramatically spike if its loan forgiveness plan is thwarted, "due to the ongoing confusion about what they owe." Borrowers have other aid optionsThose unnerved by the possibility of student loan forgiveness falling through may take some comfort in a number of other options that may offer help. (Use one of the calculators at Studentaid.gov or Freestudentloanadvice.org to find the repayment plan most affordable for you.) The Public Service Loan Forgiveness program, which allows those who work for the government and certain nonprofits to get their debt cleared after a decade, is also getting a number of improvements.

☆ Biden administration warns of 'historically large increase' in student loan defaults without debt forgiveness
▼ + stars: | 2022-11-16 | by ( Annie Nova | ) www.cnbc.com time to read: +2 min

Student loan borrowers gather near The White House to tell President Biden to cancel student debt on May 12, 2020. Student loans plagued with problems before CovidEven before the pandemic, when the U.S. economy was enjoying one of its healthiest periods in history, problems plagued the federal student loan system. watch nowFederal student loan payments have been on pause since March 2020, when the coronavirus pandemic first hit the U.S. and crippled the economy. Despite offering student loan borrowers forbearances during previous natural disasters, default rates still skyrocketed, Kvaal said in the filing. "[T]he one-time student loan debt relief program was intended to avoid" that problem, he added.

☆ Amid court challenges to its student debt forgiveness, Biden administration could extend payment pause yet again
▼ + stars: | 2022-11-15 | by ( Annie Nova | ) www.cnbc.com time to read: +2 min

With the legal blows to President Joe Biden's student loan forgiveness plan mounting, it's possible that the administration could extend the payment pause on the monthly bills yet again, experts say. "I'm sure they have to be considering it as an option," said Scott Buchanan, executive director of the Student Loan Servicing Alliance, a trade group for federal student loan servicers. If the president's policy remains blocked in the courts by the end of the year, higher education expert Mark Kantrowitz said, "the Biden Administration is likely to further extend the payment pause." Federal student loan payments have been on pause since March 2020, when the coronavirus pandemic first hit the U.S. and crippled the economy. The U.S. Department of Education closed its student loan forgiveness portal last week after a federal judge in Texas called Biden's plan "unconstitutional" and struck it down.

☆ Could student loan forgiveness still happen this year? It's possible
▼ + stars: | 2022-11-10 | by ( Annie Nova | ) www.cnbc.com time to read: +2 min

But now the Biden administration finds itself unable to start delivering its relief because of a court-ordered stay of its policy. Here's where forgiveness stands, and what might happen next. Originally, the Education Department had said that borrowers would receive forgiveness within six weeks after they applied. Loan servicers were given 15 days to apply the forgiveness to a borrowers' account after they were notified, Kantrowitz said. "If the forgiveness is still paused by the end of the year, the Biden administration is likely to further extend the payment pause," Kantrowitz said.

☆ 26 million borrowers have applied for student loan forgiveness. But GOP challenges put plan at risk
▼ + stars: | 2022-11-03 | by ( Annie Nova | ) www.cnbc.com time to read: +4 min

SKLA | iStock | Getty ImagesClose to 26 million Americans have applied for student loan forgiveness, and the Biden administration has already approved 16 million of the requests, the White House said Thursday. Yet its entire loan cancellation plan could be in jeopardy due to the legal challenges brought by Republicans, it warned. "If Republican officials get their way, tens of millions of Americans' monthly costs will rise dramatically when student loan payments resume next year," according to a statement by the administration. Most recently, a legal challenge from six GOP-led states temporarily stopped the administration from starting to forgive borrowers' debt. Tribe agreed, and said the other challengers also were on shaky legal standing.

☆ Families can get Pell Grants of up to $6,895 to help with college costs. Here's what you need to know
▼ + stars: | 2022-11-02 | by ( Annie Nova | ) www.cnbc.com time to read: +3 min

And it goes further for those who received a Pell Grant in college, a type of aid available to low-income families, by clearing as much as $20,000 from their student debt balance. The federal Pell Grant program, signed into law in 1965, is one of the largest sources of financial aid available to college students. Here's what families need to know about Pell Grants. There's a limit to how many Pell Grants you can getCollege students typically can receive the grant for up to six years. "The student can then use the money to pay for other college costs, such as textbooks," he said.

☆ Biden's student loan forgiveness plan is on hold. Here are key issues borrowers need to know
▼ + stars: | 2022-10-24 | by ( Annie Nova | ) www.cnbc.com time to read: +4 min

Porquenostudios | Istock | Getty ImagesFor those with student debt, the last few months may have given you whiplash. Here's what borrowers need to know about the development, and what it could mean for your student debt. They filed an appeal, and asked the court to stay the president's plan, which was supposed to start unfolding as early as this week, while their request is considered. Circuit Court of Appeals granted the states' emergency petition, leaving the Biden administration unable to start forgiving any student debt for now. The U.S. Department of Education had said borrowers who hold these FFEL, or Federal Family Education Loans, can take this step to qualify for its relief.

☆ U.S. student debt relief: What you need to know now
▼ + stars: | 2022-10-20 | by ( Chris Taylor | ) www.reuters.com time to read: +6 min

But the Biden administration’s new U.S. student debt relief program is not just an academic subject for her. That is because McKay is still dealing with student debt from her days getting a graduate degree at Carnegie Mellon University. So she is not just studying the student debt relief application that went live the other day (https://studentaid.gov/debt-relief/application) – she is filling it out herself. When and if the debt relief goes through, your loan servicer will let you know. BEWARE OF SCAMSThe student debt relief program has already brought scammers out of the woodwork, warns the Federal Trade Commission (https://consumer.ftc.gov/consumer-alerts/2022/10/now-student-loan-debt-relief-application-open-spot-scams).

☆ Student loan forgiveness application is in a beta period. Here's what to know if you apply
▼ + stars: | 2022-10-17 | by ( Annie Nova | ) www.cnbc.com time to read: +5 min

Wpadington | Istock | Getty ImagesWithout much fanfare, the U.S. Department of Education made available on Friday evening an early version of its student loan forgiveness application. A number of Republican legal challenges have been brought against the Biden administration's student loan forgiveness plan, risking to put the policy in jeopardy. Any borrower who has already received forgiveness will likely get to keep it, even if the courts block the President's plan. After a borrower applies for forgiveness, they'll receive an email confirmation from the Education Department, Kantrowitz said. Make sure your servicer, as well as the Education Department, has the most recent contact information for you.

☆ Education Department begins beta testing for student loan forgiveness application
▼ + stars: | 2022-10-14 | by ( Kelli Grant | Cfp | ) www.cnbc.com time to read: +1 min

Student loan borrowers gather near The White House to tell President Biden to cancel student debt on May 12, 2020. The Education Department began beta testing the student debt forgiveness application Friday night. The portal will be open available on and off during the beta test, according to The Washington Post, which was the first to report on it. "This testing period will allow the Department to monitor site performance through real-world use, test the site ahead of the official application launch, refine processes, and uncover any possible bugs prior to official launch," a Department of Education spokesperson told CNBC in an emailed statement. A preview of the application earlier this week suggested a full rollout of the application could come as soon as next week, said higher education expert Mark Kantrowitz.

☆ What we know so far about the student loan forgiveness application coming soon from the Education Department
▼ + stars: | 2022-10-13 | by ( Annie Nova | ) www.cnbc.com time to read: +3 min

Delmaine Donson | E+ | Getty ImagesThe U.S. Department of Education has said that its student loan forgiveness application will go live in "early October." The Education Department will be considering people's so-called adjusted gross income, or AGI, which may be different than your gross salary. The White House also says borrowers won't need their FSA ID to apply for forgiveness and that they can request the cancellation on a desktop computer or on their mobile phone. Some borrowers may need to verify incomeAlthough you won't be asked prove your income on the main forgiveness application, some borrowers may later need to provide documentation at the Education Department's request. "In addition, a borrower who lied on the form might be subject to wire fraud or mail fraud [charges]," he said.

☆ Here's why more than 7 million student loan borrowers could miss out on federal forgiveness program
▼ + stars: | 2022-10-10 | by ( Annie Nova | Nicole Webb | Senior Vice President Financial Advisor At Wealth Enhancement Group | ) www.cnbc.com time to read: +2 min

Freshsplash | E+ | Getty ImagesThe White House has repeatedly said that its application for student loan forgiveness, which is expected to go live within days, will be simple. Still, consumer advocates say that any red tape around the relief is likely to cause millions of borrowers to miss out on it. Applicants may miss out due to mistaken beliefsA big reason some eligible borrowers may not apply is that they'll mistakenly believe their income disqualifies them, Kantrowitz said. However, the vast majority of people with student debt fall under these income caps, Kantrowitz said. Some borrowers, meanwhile, may have outdated contact information on file with their student loan servicer, and therefore not be getting updates about the relief, according to Kantrowitz.

Leopatrizi | E+ | Getty ImagesAs part of President Joe Biden's historic student loan forgiveness plan, up to 8 million people could get automatic debt relief, according to the White House. Those who will get automatic loan cancellation are those for whom the U.S. Department of Education already has income data on file and can therefore verify eligibility without waiting for an application. Who qualifies for the automatic loan cancellation? Review your recent tax returns to confirm your income fell below those thresholds in 2020 or 2021 (either will work). The Education Department will be considering people's so-called adjusted gross income, or AGI, which may be different than your gross salary.

☆ Everything parents need to know about student loan forgiveness
▼ + stars: | 2022-09-24 | by ( Annie Nova | ) www.cnbc.com time to read: +4 min

More from Personal Finance:How student loan forgiveness will be applied to your debtsKey events on the path to student loan forgivenessHow to calculate your bill for student loan forgiveness Currently, more than 600,000 parents take out student loans for their children each year, up from around 450,000 in 2000, according to data provided by higher-education expert Mark Kantrowitz. The average outstanding Parent PLUS loan is about $30,000, he said. What if I have Parent PLUS loans and my own student loans? Currently, Parent PLUS loans come with an interest rate near 8%, compared with under 5% for undergraduate student loans. If you're still in debt after student loan forgiveness, you'll want to be prepared for the bills to resume in January.

☆ 3 steps to take now to get ready for student loan forgiveness, so you can apply ASAP
▼ + stars: | 2022-09-21 | by ( Annie Nova | ) www.cnbc.com time to read: +3 min

Polina Lebed | Istock | Getty ImagesIn just a few weeks, tens of millions of Americans may be able to apply for student loan forgiveness. It said its application will be simple, but the federal student loan system is famously complicated. The Education Department will be considering people's so-called adjusted gross income, or AGI, which may be different than your gross salary. 2. Review your loan detailsMost federal student loans qualify for the cancellation. Recent news that some Republicans may bring a legal challenge against student loan forgiveness means the relief could be thrown in jeopardy.

☆ Here's how many people will get student loan forgiveness in each state
▼ + stars: | 2022-09-20 | by ( Annie Nova | ) www.cnbc.com time to read: +1 min

The White House released an analysis on Tuesday of how many people in each state stand to benefit from its student loan forgiveness plan, including a count of borrowers who received a Pell Grant. There is no precedent for the sweeping loan relief President Joe Biden announced last month, which may cost up to $1 trillion. More from Personal Finance:How student loan forgiveness will be applied to your debtsKey events on the path to student loan forgivenessHow to calculate your bill for student loan forgivenessMost Pell Grant recipients come from families with incomes of less than $60,000, says higher education expert Mark Kantrowitz. The relief is limited to individuals earning no more than $125,000 a year, or households making less than $250,000. Rep. Ayanna Pressley, D-Mass., a longtime advocate for student loan forgiveness, said she became emotional looking at the numbers.

☆ 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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