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☆ A top progressive lawmaker is 'extremely concerned' about what the debt-ceiling deal means for student-loan borrowers, saying it constrains the time Biden has to get 'debt repayment plans up and runni
▼ + stars: | 2023-05-30 | by ( Ayelet Sheffey | ) www.businessinsider.com time to read: +4 min

Biden and McCarthy's debt-ceiling deal codifies the end of the student-loan payment pause. She said it could constrain the time Biden might need to implement new repayment plans. Congressional Progressive Caucus Chair Pramila Jayapal said during a Tuesday press call that she's "extremely concerned" with that provision. It also allows the administration to implement another payment pause in the future if another emergency warrants it, but bars Biden from doing so again this year. It also creates a major political problem for President Biden, who has tarnished his sterling legacy as a champion for working people with student debt."

Persons: Biden, Pramila Jayapal, —, isn't, Joe Biden, Kevin McCarthy's, McCarthy, — McCarthy, Jayapal, Mike Pierce, Miguel Cardona Organizations: Service, SNAP, Congressional, Protection, Twitter, Progressives

☆ 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 "Ever since the Trump Administration illegally repealed the 2014 Gainful Employment rule, students have been left unprotected from predatory higher ed profiteers," Ament said.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.

☆ Gen Z is way behind on credit-card payments. It could get even worse when student-debt payments restart.
▼ + stars: | 2023-05-16 | by ( Jacob Zinkula | Ayelet Sheffey | ) www.businessinsider.com time to read: +3 min

Gen Z is missing their credit-card payments at a rising rate. Their finances could get even worse when student-debt payments resume later this year. 36% of Gen Zers had student debt as of last June, with an average balance of $20,900. If young Americans are struggling to pay down their credit-card debt now, things could get even tougher when student-debt payments resume later this year after an over-three-year pause. "In fact, this is the only time since the New York Fed started tracking these figures in 2003 that credit-card balances did not fall from Q4 to Q1."

☆ Biden's plan to give millions of student-loan borrowers who fell behind on payments a fresh shot at debt relief is working
▼ + stars: | 2023-05-15 | by ( Ayelet Sheffey | ) www.businessinsider.com time to read: +4 min

Biden announced a "Fresh Start" plan to return borrowers behind on payments to good standing before reentering repayment. Data from the New York Fed found less than 1% of borrowers are in default due to the plan. The Education Secretary recently confirmed that payments will resume this year, with or without broad debt relief. This progress is important given that student-loan payments are expected to resume this year after what will be an over three year pause. The Education Department is also in the process of implementing a new income-driven repayment plan, which it says would be "the most affordable repayment plan ever."

☆ 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.

☆ Millions of student-loan borrowers would be forced into 'abrupt and unplanned repayment' if Republicans' plan to overturn Biden's debt cancellation gets passed, 261 advocacy groups tell Congress
▼ + stars: | 2023-05-08 | by ( Ayelet Sheffey | ) www.businessinsider.com time to read: +5 min

The House could likely take a first vote this week on a bill that would overturn student-debt relief. 261 advocacy groups urged congressional leaders on Monday to ensure that doesn't happen. They said the bill could force borrowers into an "abrupt" return to repayment and block targeted relief. "It will also force the Department of Education to unwind loans forgiven under Public Service Loan Forgiveness for first responders, nurses, educators, servicemembers, and hundreds of thousands of other public service workers across the country," they continued. Along with the CRA, McCarthy's bill to raise the debt ceiling — which passed the House two weeks ago — had spending cuts attached that included banning student-loan forgiveness.

☆ The Biden administration has forgiven $42 billion in student loan debt for borrowers in public service
▼ + stars: | 2023-05-08 | by ( Kamaron Mcnair | In Kamaronmcnair | ) www.cnbc.com time to read: +1 min

Since the Biden administration announced improvements to Public Service Loan Forgiveness (PSLF) and temporarily expanded forgiveness eligibility in October 2021, 615,000 public service workers have seen $42 billion in student debt erased, according to a Department of Education (ED) statement released Monday. PSLF allows federal student loan borrowers who go into public service — such as teachers, nurses, government employees and more — an opportunity to have their debt forgiven after completing 10 years of service. That's why the Biden administration has made it a priority to address issues with the process and make it easier for qualifying borrowers to see forgiveness. Borrowers are required to be on an income-driven repayment plan to make their 120 monthly payments to qualify for forgiveness. But under the temporary expansion, which ended in October 2022, eligible borrowers could receive forgiveness regardless of the type of payment plan they followed.

☆ 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?

☆ Miguel Cardona, Miseducation Secretary
▼ + stars: | 2023-05-06 | by ( The Editorial Board | ) www.wsj.com time to read: 1 min

Education Secretary Miguel Cardona Photo: Lev Radin/Zuma PressThe federal Department of Education’s mission is supposed to be . Apparently Education Secretary Miguel Cardona thinks it’s something other than improving educational results. New national test results this week showed eighth-grade U.S. history scores at an all-time low, and Mr. Cardona’s response was to attack the GOP. Scores dropped the most among the lower performers. The civics results are similarly depressing.

☆ Millions of student-loan borrowers could find out in the next 2 months if they will get Biden's debt relief. Here's what's at stake — beyond a reduction to balances.
▼ + stars: | 2023-05-01 | by ( Ayelet Sheffey | ) www.businessinsider.com time to read: +8 min

The Supreme Court is expected to issue a decision on Biden's student-debt relief by the end of June. They could have debt relief right now if it weren't for these lawsuits." And it looks like the Education Department is planning for those payments to resume with or without relief. The implementation of targeted debt relief reformsThe Education Department has some other things in the works, aside from broad student-debt relief. Share your student debt story with this reporter at asheffey@insider.com.

☆ 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.

☆ 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.

☆ 20 GOP-led states are asking the Supreme Court to halt Biden's latest student-debt cancellation for 200,000 borrowers, backing a request from 3 schools accused of defrauding their students
▼ + stars: | 2023-04-11 | by ( Ayelet Sheffey | ) www.businessinsider.com time to read: +4 min

A federal judge ruled that 200,000 borrowers can move forward with relief in a borrower defense settlement. Last month, three schools mentioned in the settlement appealed the decision to the Supreme Court. 20 GOP-led states filed an amicus brief supporting the schools, arguing Biden doesn't have authority to carry out this relief. Unlawful delay of debt relief results in clear monetary harm." The Education Department has until Wednesday to file a response to the three schools' lawsuit, which currently sits with Supreme Court Justice Elena Kagan.

☆ U.S. Education Secretary Cardona on transgender athletes, student debt, history lessons
▼ + stars: | 2023-04-11 | by ( ) www.reuters.com time to read: +5 min

TRANSGENDER YOUTH ATHLETESA recent Title IX proposed rule from the Department of Education prohibits outright bans in transgender athletes in sports, but allows schools to keep them from some teams. The Department of Education hopes to take feedback and have the rule finalized in time for the next school year, he said. "I do believe there are very deliberate attempts to attack public education so that a private voucher option sounds better," Cardona said. Florida is one of several states that have banned public schools from teaching "Critical Race Theory," an academic framework that teaches that racism is embedded in U.S. laws, policies and institutions. Cardona said he intended to double down on ensuring access to education for all students.

☆ A mom took out over $77,000 in student loans to send her son with autism to college. He got his debt wiped out — but she's still paying hers off with no end in sight.
▼ + stars: | 2023-04-08 | by ( Ayelet Sheffey | ) www.businessinsider.com time to read: +6 min

Marsha Wipperman, 59, took on parent PLUS student loans so her son with autism could attend college. "I'm going pay it. So I just signed away on my parents loans because that's what a parent does." Marsha Wipperman took on $77,000 in PLUS loans for her son. 'I've done 100% what I needed to do at that time'Parent PLUS loans gave Wipperman's son the opportunity to attend college, and she wouldn't have done it any other way.

☆ Biden proposal limits bans on transgender athletes
▼ + stars: | 2023-04-06 | by ( Jarrett Renshaw | ) www.reuters.com time to read: +2 min

WASHINGTON, April 6 (Reuters) - The Biden administration on Thursday proposed a rule change that would prohibit schools from enacting outright bans on transgender athletes from teams that are consistent with their gender identities, but offered flexibility on exceptions for the highest levels of competition. The proposed change to Title IX is likely to revive debates about transgender rights, particularly in sports. Across the country, there has been a push by conservative U.S. lawmakers to prevent transgender women from participating in school sports. The proposal would also offer flexibility to K-12 schools and universities to limit the participation of transgender students when including them could undermine "fairness in competition" or potentially lead to sports-related injuries. Critics say transgender women who take part in women's sports are often bigger and stronger than their cisgender opponents and have an unfair advantage.

☆ $6 billion in student-loan forgiveness for 200,000 borrowers just cleared another hurdle — and all members involved in the years-long lawsuit can now get relief
▼ + stars: | 2023-04-05 | by ( Ayelet Sheffey | ) www.businessinsider.com time to read: +3 min

An appeals court rejected three companies' request to pause relief for borrowers in the Sweet vs. Cardona lawsuit. Last year, a federal judge signed off on a settlement in the case that would give 200,000 borrowers $6 billion in debt relief. Those borrowers filed a lawsuit in 2019 over stalled borrower defense claims against the schools they attended. Cardona agreed to a settlement last summer in the case that would give 200,000 impacted borrowers $6 billion in debt relief. Borrowers who filed a claim against a school not included on that list will receive relief based on the following timeline:

☆ Colleges ask Supreme Court to halt $6B student loan debt settlement
▼ + stars: | 2023-04-05 | by ( Lawrence Hurley | ) www.cnbc.com time to read: +3 min

People rally in support of the Biden administration's student debt relief plan in front of the the U.S. Supreme Court on February 28, 2023 in Washington, DC. Colleges challenging a class-action settlement that could lead to student loans being canceled for hundreds of thousands of borrowers on Wednesday asked the Supreme Court to put the case on hold. The application at the Supreme Court was filed by Everglades College, Lincoln Educational Services Corporation and American National University. They asked the Supreme Court to put Alsup's ruling on hold and consider hearing the case on an accelerated basis. In the separates cases involving Biden's debt relief plan, the Supreme Court in February appeared skeptical that it was lawful.

☆ 453,000 student-loan borrowers in public service have gotten their debt wiped out over the past year — and more are still to come, Biden's Education Department says
▼ + stars: | 2023-03-29 | by ( Ayelet Sheffey | ) www.businessinsider.com time to read: +4 min

453,000 student-loan borrowers have gotten debt relief through the PSLF waiver, the Education Department said. Biden's Education Department announced in October 2021 temporary reforms for PSLF, a program that allows government and nonprofit workers to receive loan forgiveness after ten years of qualifying payments. While many borrowers are still waiting for their applications to be processed, the Education Department also announced permanent reforms to PSLF in October following the waiver's expiration. "Higher education should lift you up, not weigh you down," Education Secretary Miguel Cardona wrote on Twitter in January. "Thanks to changes we've made to the Public Service Loan Forgiveness program, everyday Americans can reach dreams they put off for far too long.

☆ Biden's Education Department blasts the GOP's new plan to strike down student-loan forgiveness, saying it's a 'shame' for the borrowers who live in their districts
▼ + stars: | 2023-03-28 | by ( Ayelet Sheffey | ) www.businessinsider.com time to read: +5 min

Cardona said it's a "shame" for the millions of borrowers who would benefit in the GOP lawmakers' districts. After the Republicans introduced the resolution, Cardona said in a statement that those lawmakers "represent millions of borrowers who have applied for student debt relief." Biden's plan to cancel student debt has been paused since November due to two conservative-backed lawsuits seeking to permanently block the relief. And Sen. Joe Manchin, a centrist Democrat, previously called the debt relief "excessive." "We're talking about more than 2.1 million borrowers who have applied for student debt relief in Texas, more than 380,000 borrowers in Louisiana, more than 250,000 borrowers in Iowa."

☆ Elizabeth Warren wants Biden's Education Department to go beyond broad student-loan forgiveness and crack down on the institutions that cause borrowers' debt loads to spiral
▼ + stars: | 2023-03-27 | by ( Ayelet Sheffey | ) www.businessinsider.com time to read: +7 min

Sen. Elizabeth Warren sent a letter to the Education Department with recommendations to better protect student-loan borrowers. Biden's Education Department has reformed the borrower defense to repayment, which are claims students can file if they believe they were defrauded by the school they attended. In her letter, Warren urged Cardona to ensure predatory schools cannot receive federal aid. It aimed to prevent students from borrowing federal loans for programs they probably wouldn't be able to pay off. But in 2010, former President Donald Trump repealed the rule, and Biden's Education Department pushed off reinstating it until 2024.

☆ The GOP just tried the fast-track route to block Biden's student-debt relief. Here's why it probably won't work.
▼ + stars: | 2023-03-26 | by ( Ayelet Sheffey | ) www.businessinsider.com time to read: +7 min

But the debt relief still faces challenges ahead as the Supreme Court decides its legality. Chip Somodevilla/Getty ImagesOther roadblocks student-debt relief could faceA CRA resolution might not work, but Republicans have still put forth other legislation. "We will continue to fight this cruel Republican attempt to end student debt relief with everything we have," he said. Amid potential challenges, Biden's administration has not relented in its confidence student-debt relief will reach borrowers this year. "Our student debt relief plan is necessary in the wake of the pandemic," Education Secretary Miguel Cardona wrote on Twitter.

☆ Millions of student-loan borrowers will experience 'devastating' delays in debt relief if a GOP proposal to cut spending goes through, Biden's Education Secretary says
▼ + stars: | 2023-03-20 | by ( Ayelet Sheffey | ) www.businessinsider.com time to read: +4 min

Rep. Rosa DeLauro asked all federal agency heads how GOP spending cut proposals would impact them. Miguel Cardona outlining the "devastating" impact the cuts would have on student-loan borrowers. He said the cuts would delay student-debt relief and make it even harder to get customer service help. Education Secretary Miguel Cardona, in his response, elaborated on the "devastating effects" the GOP proposal would have on students and parents who rely on financial aid — especially student-loan borrowers. But the agency already has a lot on its plate with minimal resources, given Congress approved a budget last year that did not increase Federal Student Aid's funding.

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