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Reps. Katie Porter and Joe Courtney sent a letter to student-loan company MOHELA on Tuesday. They asked how the company is using its resources to manage the Public Service Loan Forgiveness portfolio. Borrowers have reported difficulty getting help from MOHELA during the payment pause. On Tuesday, Reps. Katie Porter and Joe Courtney sent a letter to Scott Giles, the CEO of student-loan company MOHELA, which manages the Public Service Loan Forgiveness portfolio. Nelnet, another student-loan company, announced in March that it was cutting its call center hours and laying off 550 employees likely due to budget constraints.
Persons: Katie Porter, Joe Courtney, MOHELA, haven't, Scott Giles, Joe Biden's, Porter, Courtney, Giles, Nelnet, Organizations: Public, Service, Democratic, MOHELA, Joe Biden's Education Department, Department, , Education Department Locations: MOHELA, Wall, Silicon, PSLF
Over 800,000 student-loan borrowers are set to start seeing their debt wiped out. It's part of a one-time account adjustment for borrowers on income-driven repayment plans. The future of the relief is uncertain after conservative groups filed a lawsuit to block it. On Monday, student-loan companies are set to begin discharging the debt of 804,000 borrowers who have qualified for $39 billion in debt relief — part of the first batch of borrowers affected by the Education Department's one-time account adjustment for income-driven repayment plans. "At the start of this Administration, millions of borrowers had earned loan forgiveness but never received it.
Persons: Education James Kvaal, Joe Biden's Organizations: Service, Education, New Civil Liberties Alliance, Cato Institute, Mackinac Center for Public, Public, Education Department Locations: Wall, Silicon
Student-loan company Nelnet started notifying borrowers of their monthly payments in October. Shortly after, borrowers took to X to complain about inability to reach the company's customer service. Nelnet responded on X that its call center briefly shut down, and it's receiving an influx of calls and emails. The Education Department and student-loan servicers have never transitioned millions of borrowers back into repayment at this scale. Do you have concerns with the return to student-loan repayment?
Persons: Nelnet, , couldn't, servicers —, Joe Biden, servicers, I'm Organizations: Service, Education Department, The Education Department, Federal Student, Republicans, Federal Student Aid Locations: Wall, Silicon
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
The rise in the rate reflects continued stress in the U.S. commercial real estate sector as a post-pandemic environment had more people working from home or shopping online. Office loans made up roughly 35% of the newly special serviced and delinquent loans in July rated by KBRA at $898.4 million. So far in July, multiple office properties have been transferred to special servicing due to imminent monetary default. The total special servicing balance on multi-loan CMBS sharply increased $830.7 million to $14 billion, the largest rise since August 2020, the report said. KeyBank's subsidiary KeyBank Real Estate Capital handles commercial real estate lending and servicing.
Persons: Amr Alfiky, KBRA, Chris Gorman, KeyCorp, Matt Tracy, Shankar Ramakrishnan, Jamie Freed Organizations: REUTERS, KBRA, Estate Capital, Thomson Locations: New York City, U.S
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,
Biden is going through negotiated rulemaking to implement his new student-debt relief plan. It recently took his Education Department 15 months to go through that process. The law says the Education Department can "enforce, pay, compromise, waive, or release any right, title, claim, lien, or demand" related to federal student debt. That process has historically taken a long time, meaning that the new attempt at broad student-debt relief may not arrive for a while. Of course, the timeline for this new plan for student-debt relief could be quicker, and Education Department officials have said they will work as fast as they can under the process to get relief to borrowers.
Persons: Biden, Joe Biden's, Education James Kvaal Organizations: Department, Service, Education Department, Higher, Biden overreached, Federal, Education, guaranty, servicers, Federal Register Locations: Wall, Silicon
Student-loan payments are resuming in October without broad debt relief. A group of Democrats asked CEOs of student-loan companies how they are preparing for the restart. They want updated information on how the companies are training customer service workers and reaching out to borrowers. Since March 2020, student-loan payments have been on pause, with interest waived, to provide borrowers financial relief during the pandemic. It announced a 12-month "on-ramp" period once payments resume during which borrowers will not be reported to credit agencies for missed payments, along with a new income-driven repayment plan to lower monthly payments.
Persons: Elizabeth Warren, Richard Blumenthal, Chris Van Hollen, Ed Markey, Sherrod Brown, Bob Menendez —, Donald Trump, Joe Biden, Biden, servicers Organizations: Service, Democratic, Public, Federal Student Aid, Republicans, Biden's Education Department Locations: Wall, Silicon
Medical debtChopra said that tens of millions of Americans are battling medical debt. The crisis is compounded by debt collectors that add medical debt to credit reports as a means of coercion. The agency's crackdown on junk fees has prompted some policy changes at big banks, he added. "Many of them are getting rid of their reliance on junk fees and making their fees much more reasonable," Chopra said. Rep. Blaine Luetkemeyer, R-Mo., has said the CFPB has "no authority" on the issue because junk fees is not a legal term.
Persons: Rohit Chopra, Tom Williams, Andy Barr, Chopra, servicers, We're, Experian, Blaine Luetkemeyer, Luetkemeyer Organizations: Consumer Financial Protection, Banking, Housing, Urban Affairs, Cq, Inc, Getty, Consumer Financial, Bureau, Federal Reserve, Governors, CNBC, Education Department, U.S, Kaiser Family Foundation, Bank of America, Biden, GOP, Rep, Financial Services Locations: Ky
The Biden Administration announced $39 billion in automatic loan forgiveness to 804,000, according to a July 14 press release from the U.S. Department of Education. This wave of student loan forgiveness is separate from the forgiveness plan outlined in August 2022 that the Supreme Court recently struck down in June 2023. Under Secretary James Kvaal said in the statement that "millions of borrowers had earned loan forgiveness but never received it." Who qualifies for the Biden Administration's student loan forgiveness? With the Biden administration's widespread student debt relief blocked by the Supreme Court, the future of student loan forgiveness is currently on hold.
Persons: James Kvaal, Kamala Harris, Mark Kantrowitz, they've, accrual Organizations: Biden Administration, U.S . Department of Education, Supreme Court, Federal, Department of Education, Biden, CNBC, of Education, Department, Education, Supreme, The, CNBC Select's, Facebook, Twitter
The Education Department announced $39 billion in debt relief for over 800,000 borrowers. On Friday, President Joe Biden's Education Department announced that over 800,000 student-loan borrowers will receive $39 billion in debt relief in the coming months thanks to a one-time adjustment to accounts enrolled in an income-driven repayment plan. Here's what borrowers should know if they want to benefit from the relief. How to make sure your loans qualifyThe account adjustment only applies to direct federal loans and FFEL loans held by the Education Department. How to get a refund if a borrower overpaysOnce a borrower reaches the repayment threshold, they automatically qualify for forgiveness.
Persons: Joe Biden's, Education Department —, you'll Organizations: Education Department, Service, Joe Biden's Education Department, Family Education, Federal Student Aid Locations: Wall, Silicon, PAYE
Supreme Court justices listen to arguments. U.S. Supreme Court Chief Justice John G. Roberts poses during a group portrait at the Supreme Court in Washington, U.S., October 7, 2022. They pointed out that the lender's revenue was actually expected to rise because of some student loan servicers recently leaving the space and it picking up extra accounts. "I was surprised the court found Missouri had standing," said higher education expert Mark Kantrowitz. That law was passed in the aftermath of the 9/11 terrorist attacks, and grants the president broad power to revise student loan programs during national emergencies.
Persons: Bill Hennessey, Joe Biden's, John Roberts, Roberts, John G, Evelyn Hockstein, servicers, Mark Kantrowitz, Luke Herrine, Antonin Scalia, Herrine, Elena Kagan, Kagan Organizations: Biden, Finance, GOP, Missouri Higher Education Loan Authority, Supreme, Reuters, University of Alabama, Liberal, U.S . Department of Education Locations: — Arkansas, Iowa , Kansas , Missouri , Nebraska, South Carolina, . Nebraska, Missouri, Washington , U.S, delinquencies
Tens of thousands of borrowers with federal student loans are probably wondering: Is my debt load about to get a little lighter? In the coming days and months, thousands of borrowers will learn whether they received an account adjustment resulting in enough qualifying payments to eliminate their loans — a process that will continue until the end of the year. After that, borrowers who don’t yet have enough qualifying payments for cancellation will receive their updated payment counts. Here’s what we know about who’s eligible:Who qualifies? Borrowers with direct loans or those made through the Federal Family Education Loan, or F.F.E.L., program and held by the Education Department may qualify, including borrowers with Parent PLUS loans.
Persons: servicers Organizations: Biden, Federal Family Education, Education Department, Parent
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
In recent weeks, banks have stepped up efforts to prevent such losses, according to commercial real estate (CRE) analysts and industry data. The 23 largest U.S. banks held 20% of office and downtown retail CRE loans, according to the U.S. Federal Reserve. Small banks also have high exposure to CRE loans as a percentage of their assets. About $2.1 billion of office loans pooled in CMBS matured in May, almost double the total amount from January through April, for example. If borrowers agreed to loan extensions, some $10.8 billion of office loans maturing this year would be pushed to later years, Moody's said.
Persons: Shaishav Agarwal, Agarwal, Steve Jellinek, Moody's, Kevin Fagan, Fagan, ” Fagan, Eliasaf, , Banks, Shankar Ramakrishnan, Matt Tracy, Paritosh Bansal, Nick Zieminski Organizations: U.S, Deutsche Bank, U.S . Federal, Manhattan, Northwind, Thomson Locations: York
People line up outside of the Supreme Court in Washington, D.C., on June 30, 2023. Kent Nishimura | Los Angeles Times | Getty ImagesMany student loan borrowers face risk factors that suggest they could struggle covering their bills, especially after the Supreme Court struck down President Biden's federal student loan forgiveness proposal and repayment will resume in October. "I wasn't necessarily surprised," said Stedman, who graduated from college in 2013 with just under $40,000 in student loan debt. For his part, Stedman said he's found his student loan debt to be a "challenge" since graduation. 3 things to consider as loan payments resume
Persons: Kent Nishimura, Colton Stedman, Biden, Stedman, , Jack Wallace, Yrefy, he's, It's, Wallace Organizations: Washington , D.C, Los Angeles Times, Getty, Consumer Financial, Bureau, South Saint, Finance, Governors, Federal Reserve System, College Board Locations: Washington ,, South, South Saint Paul , Minnesota, U.S, Yrefy
Student debt relief activists stand in front of the U.S. Supreme Court on June 30, 2023 in Washington, DC. (Photo by Kevin Dietsch/Getty Images)The Supreme Court on Friday rules against President Joe Biden's student loan forgiveness plan, prohibiting up to $20,000 in loan relief per borrower from proceeding. The plan, first announced in August 2022, would have forgiven $10,000 for all federal student loan borrowers and $20,000 for Pell Grant recipients who earn less than $125,000 a year ($250,000 for married couples). The Biden administration has also recently beefed up existing programs, making it easier to qualify for student loan relief. Public Service Loan Forgiveness (PSLF) has become easier for federal borrowers to obtain under the Biden administration.
Persons: Kevin Dietsch, Joe Biden's, Biden, Sonia Sotomayor, Ketanji Brown Jackson, Elena Kagan, Pell Grant, servicers Organizations: U.S, Supreme, Higher Education, Department of Education, Federal, Aid Locations: Washington ,
The Education Department finalized a three-month grace period after payments resume, per Politico. The Supreme Court will issue a decision on Biden's broad debt relief plan on Friday. In addition to the grace period, Politico also reported that the Education Department will unveil its new income-driven repayment plan in the coming weeks, with implementation soon after. The Education Department did not immediately respond to Insider's request for comment on its forthcoming plans. Amid the repayment debate, the most pressing issue for borrowers right now is whether the Supreme Court will uphold Biden's broad student-loan forgiveness.
Persons: It's, , Joe Biden's, Biden, Biden's, Virginia Foxx, Foxx, Sen, Bill Cassidy, Secretary Miguel Cardona, Alexandria Ocasio, Cortez Organizations: Education Department, Politico, Service, Joe Biden's Education Department, Republican, Department, Secretary, Democratic Locations: Alexandria, United States
How to Pay Off Your Student Loans
  + stars: | 2023-06-28 | by ( Rebecca Safier | ) www.wsj.com   time to read: +13 min
Here’s how to pay off student loans in a way that works for your budget and goals. Look into specialized loan forgiveness programsWhile the Supreme Court hasn’t shared its ruling on Biden’s widespread forgiveness initiative yet, there are other options for loan discharge, such as Public Service Loan Forgiveness and Teacher Loan Forgiveness. You can pay off federal student loans early, as there’s no student loan prepayment penalty. If you want to retain access to federal protections, it wouldn’t make sense to refinance your federal student loans. In the end, there’s no single right way to pay off student loans faster.
Persons: Rebecca Safier, Biden’s, , Robert Farrington, you’re, you’ve, Michael Lux, , Farrington, Autopay, servicers, autopay, servicer Nelnet, hasn’t, Adam Minsky, You’ll, Mark Kantrowitz Organizations: Education Department, College Investor, millennials, Federal, Aid, Grad, Student Loan Sherpa, Student Aid, autopay, Peace Corps, Corinthian, Education Locations: , SavingforCollege.com
Now, Maza has just raised $8 million in seed funding from investors like Andreessen Horowitz. A year and a half later, and Maza has raised $8 million in seed funding led by Andreessen Horowitz. Customers will have access to Maza's banking services, which include card services, check deposit, and tax services. Down the road, however, the cofounders envision Maza as an "identity" company rather than a banking company, akin to CLEAR in airports, said Arango. Check out the 14-slide pitch deck that Maza used to raise $8 million in seed funding: (Note: certain proprietary information has been redacted.)
Persons: Maza, Andreessen Horowitz, Maza cofounders Luciano Arango, Robbie Figueroa, Siggy, Arango, Anré Williams, Figueroa, Wells Fargo, Seema Amble Organizations: Maza's, LinkedIn, SV Angel, Restive Ventures, Global Founders Capital, American Express National Bank, William Hockey, Plaid Locations: United States, Bilstein, Maza, Wells, Colombia
Student-loan payments are set to resume in October. GOP Rep. Foxx and Sen. Cassidy asked the Education Department for its strategy on the resumption. They said they're concerned the department is "ill prepared" to transition borrowers back into repayment. Two Republican lawmakers want to know how the Education Department is preparing for that to happen. Since March 2020, federal student-loan payments — and interest — have been on pause to provide borrowers with financial relief during the pandemic.
Persons: Foxx, Sen, Cassidy, they're, , Joe Biden's, Miguel Cardona, Biden, Virginia Foxx, Bill Cassidy, Cardona, Mr Organizations: GOP, Education Department, Service, Department, Politico, Federal Student
India’s $1 bln education buyout is a studied bet
  + stars: | 2023-06-21 | by ( ) www.reuters.com   time to read: +2 min
MUMBAI, June 21 (Reuters Breakingviews) - The biggest merger in Indian corporate history has opened the door for private equity giant EQT (EQTAB.ST) to enter the country’s education finance market. The deal is touted as the largest ever PE buyout in the country’s financial sector and values Credila at roughly 101 billion rupees ($1.2 billion), or roughly 37 times earnings in the last financial year. The target specalises in education financing for those looking to universities in the United States, the UK and Canada for higher education. The buyers will also inject 20 billion rupees into Credila, which should help give the company, already a market major, an edge over rivals including state-controlled banks and the Warburg Pincus-backed Avanse Financial Services. They do not reflect the views of Reuters News, which, under the Trust Principles, is committed to integrity, independence, and freedom from bias.
Persons: HDFC, Credila, BPEA EQT, Warburg Pincus, Shritama Bose, Robyn Mak, Thomas Shum Organizations: Reuters, Chrys Capital, Bajaj Finance, Financial, Twitter, Virgin, Thomson Locations: MUMBAI, Swedish, United States, Canada, India, Credila, Cava
Virgin Galactic defies gravity
  + stars: | 2023-06-16 | by ( ) www.reuters.com   time to read: +2 min
NEW YORK, June 16 (Reuters Breakingviews) - The Virgin Galactic (SPCE.N) countdown has begun. Richard Branson’s space tourism company said on Thursday it plans to launch its first commercial flight within days. Virgin Galactic also depends on there being enough people willing to pay $450,000 for a few minutes in weightlessness. If Virgin Galactic could carry six passengers a week, and earn a 20% EBITDA margin, it would someday generate about $30 million of such earnings. For a company that has so badly missed previous projections, it’s Virgin Galactic’s valuation that is out of this world.
Persons: Richard, Jeff Bezos, Elon Musk, Robert Cyran, Jeffrey Goldfarb, Streisand Neto Organizations: YORK, Reuters, Virgin, Galactic, Origin, SpaceX, Southwest Airlines, Twitter, Thomson Locations: Cava
Cava IPO comes in a little too hot
  + stars: | 2023-06-16 | by ( ) www.reuters.com   time to read: +2 min
The company’s IPO raised $318 million, about $30 million more than it had expected a few days earlier, to fuel its expansion. And just in time for the afternoon lunch rush, its shares opened on the New York Stock Exchange at nearly double its IPO price. That implies Cava’s valuation is close to $5 billion, over twice the amount private investors ascribed it in 2021. Cava is a lot like Sweetgreen – neither are profitable, and both have a similar number of stores. But Cava now trades at more than five times its theoretical annualized sales based on the first quarter, much higher than the 1.4 times Sweetgreen commands.
Persons: Cava, copycats, Anita Ramaswamy, John Foley, Katrina Hamlin Organizations: YORK, Reuters, New York Stock Exchange, Twitter, Corporate, Thomson Locations: Crunchbase, Cava
Generali’s pounce may win over in-house sceptics
  + stars: | 2023-06-16 | by ( ) www.reuters.com   time to read: +2 min
The 29 billion euro Italian insurer on Thursday agreed to purchase Liberty Seguros, a group of European businesses, from U.S. insurer Liberty Mutual for 2.3 billion euros in cash. The Italian insurer’s largest acquisition since 2013 nearly exhausts its M&A firepower, which the group had assessed at between 2.5 billion euros and 3 billion euros. At 2.3 billion euros, or nearly two times its 1.2 billion euros of annual revenue, Liberty Seguros’ price tag does not look cheap. But the real price falls to 1.8 billion euros after factoring in around 500 million euros of cash expected from a sale of Brazilian assets announced earlier this year. Assuming three-quarters of these are cost cuts, they may be worth around 800 million euros once taxed at 25% and capitalised.
Persons: Francesco Gaetano Caltagirone, Philippe Donnet, Generali, Lisa Jucca, Pierre Briancon, Oliver Taslic Organizations: MILAN, Reuters, Liberty, Liberty Mutual, Axa, Allianz, Twitter, Thomson Locations: U.S, Italian, Iberia, Spain, Portugal, Europe, Cava
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