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U.S. President Joe Biden delivers remarks regarding student loan debt forgiveness in the Roosevelt Room of the White House on Wednesday August 24, 2022. The Biden administration said in a new court filing Thursday that it will ask the Supreme Court to lift an injunction and allow a major student loan debt relief program to resume. Earlier Thursday, the Biden administration revealed updated guidelines that will make it easier for those struggling with their student debt to discharge it in bankruptcy. "Amidst efforts to block our debt relief program, we are not standing down." "This belief may well stop them from making payments even if the Department is prevented from effectuating debt relief," he wrote.

☆ Biden administration to make it easier for student loan borrowers to discharge debt in bankruptcy
▼ + stars: | 2022-11-17 | by ( Annie Nova | ) www.cnbc.com time to read: +2 min

President Joe Biden speaks on the student debt relief plan as Secretary of Education Miguel Cardona listens in at the Eisenhower Executive Office Building in Washington, D.C., on Oct. 17, 2022. The Biden administration announced on Thursday updated guidelines that will make it easier for those struggling with their student debt to discharge it in bankruptcy. Under the rules, the agencies may recommend that a bankruptcy judge discharge a borrower's student debt if they find their case warrants it. Currently, it's difficult, if not impossible, for someone to walk away from their federal student debt in a normal bankruptcy proceeding. Outstanding student debt exceeds $1.7 trillion, and even before the pandemic, some 10 million borrowers were in delinquency or default.

☆ Student debt forgiveness is on hold for now—here's why it's blocked and what could happen next
▼ + stars: | 2022-11-16 | by ( Kamaron Mcnair | ) www.cnbc.com time to read: +9 min

After appearing to clear a number of other legal hurdles, President Joe Biden's student debt forgiveness plan has been blocked. If the president's appeal in Texas is successful, it's likely the plaintiffs will escalate the case to the Supreme Court or vice versa. Still, federal judges are appointed by elected officials, and it so happens the judges striking down Biden's debt forgiveness were nominated by Republican presidents. Aside from appealing in Texas, the president has not yet announced next steps for the debt forgiveness plan or other relief for borrowers. The 8th Circuit Court's decision to keep the block on debt forgiveness for now adds to the likelihood of a Supreme Court case, she says.

☆ Another federal court just slammed the brakes on Biden's student-loan forgiveness, keeping debt relief from millions of borrowers
▼ + stars: | 2022-11-14 | by ( Ayelet Sheffey | ) www.businessinsider.com time to read: +3 min

The 8th Circuit just blocked Biden's student-loan forgiveness plan in response to a lawsuit filed by six GOP-led states. This means Biden cannot cancel any student debt while the injunction is in place, pending an appeal. It's the second court in recent days to put a block on Biden's plans to cancel up to $20,000 in debt. It also comes after a federal court in Texas struck down Biden's debt relief plan, declaring it illegal on November 10. The Education Department has not yet indicated whether that pause will be further extended, given the injunction on the relief.

☆ Student-loan borrowers should not resume payments in January after federal courts have blocked the relief, advocates say
▼ + stars: | 2022-11-14 | by ( Ayelet Sheffey | ) www.businessinsider.com time to read: +4 min

Two federal courts have blocked Biden's student-loan forgiveness plan so far. Advocates say student-loan payments should not resume in January without relief. These legal challenges could delay the implementation of Biden's debt relief for months — potentially extending into next year, when student-loan payments are scheduled to resume. Alongside the August announcement of broad student-loan forgiveness, the department announced the "final" extension of the student-loan payment pause through December 31. Still, given that the department told borrowers the goal was to have their relief processed before payments resume, advocates are hoping borrowers won't be thrown into repayment too soon.

☆ The federal judge who blocked Biden's student-loan forgiveness plan is playing 'politics instead of actually following the law,' Elizabeth Warren says
▼ + stars: | 2022-11-14 | by ( Ayelet Sheffey | ) www.businessinsider.com time to read: +4 min

A federal judge in Texas blocked Biden's student-loan forgiveness plan last week. Sen. Elizabeth Warren said the judge was playing politics "not actually following the law." Biden's administration appealed the decision, but debt relief cannot be implemented right now. "President Trump did it, President Obama did it, and President Biden has actually done it up to now on student-loan debt payments. At this point, the millions of borrowers who applied for debt relief are in limbo, waiting to see how federal courts will rule on the student-loan forgiveness.

☆ Here's what happens now that Biden's student-loan forgiveness plan is officially blocked
▼ + stars: | 2022-11-14 | by ( Ayelet Sheffey | ) www.businessinsider.com time to read: +4 min

A federal judge in Texas struck down Biden's student-loan forgiveness on Thursday. Now, however, the Education Department has stopped accepting applications. "We are disappointed in the decision of the Texas court to block loan relief moving forward," he added. "Amidst efforts to block our debt relief program, we are not standing down." Where student-loan forgiveness goes from hereShortly after the Texas ruling, the Education Department said the Justice Department had filed an appeal of the court's decision, which will go to the conservative 5th Circuit.

☆ The fate of Biden's student-loan forgiveness rests in the federal courts after neither party looks likely to gain a significant majority in the midterms
▼ + stars: | 2022-11-12 | by ( Ayelet Sheffey | ) www.businessinsider.com time to read: +6 min

That means that the fate of President Joe Biden's student-loan forgiveness doesn't lie in the hands of lawmakers, but rather, the federal courts. "We are disappointed in the decision of the Texas court to block loan relief moving forward. Amidst efforts to block our debt relief program, we are not standing down," he added. The department also aims to roll out improvements to targeted loan forgiveness programs, like Public Service Loan Forgiveness, by next summer. "It must use all of its tools to fight to ensure that borrowers receive the debt relief they need."

☆ Biden's Education Department 'will hold onto' student-loan borrowers' debt cancellation applications so it can 'quickly process their relief once we prevail in court,' the White House says
▼ + stars: | 2022-11-11 | by ( Ayelet Sheffey | ) www.businessinsider.com time to read: +4 min

The White House said the Education Department will hold onto borrowers' information during this time. The administration is appealing the decision and is confident its debt relief will prevail in court. But Biden's administration remains confident in its authority to discharge millions of borrowers' student loans. In a statement after the ruling, White House Press Secretary Karine Jean-Pierre said that "we strongly disagree with the District Court's ruling on our student debt relief program and the Department of Justice has filed an appeal." But the law is on our side and we will keep fighting for the millions of Americans with student debt."

☆ Biden's Education Department just shut the door on new student-loan relief applications following a court ruling
▼ + stars: | 2022-11-11 | by ( Sam Tabahriti | ) www.businessinsider.com time to read: +2 min

Biden's Education Department has stopped accepting applications for student-loan forgiveness. The announcement came after a US District judge ruled on Thursday that the debt relief program was illegal. "Courts have issued orders blocking our student debt relief program," according to a note on the forgiveness application page. The Education Department said in a statement following the ruling that the Department of Justice has filed an appeal. Cardona added: "Amidst efforts to block our debt relief program, we are not standing down."

☆ Biden Administration stops taking applications for student loan forgiveness
▼ + stars: | 2022-11-11 | by ( Annie Nova | ) www.cnbc.com time to read: +3 min

U.S. President Joe Biden is flanked by U.S. Secretary of Education Miguel Cardona as he speaks about administration plans to forgive federal student loan debt during remarks in the Roosevelt Room at the White House in Washington, U.S., August 24, 2022. The Biden administration has stopped accepting applications for federal student loan forgiveness after a court struck down its plan on Thursday evening. "Courts have issued orders blocking our student debt relief program," according to a note on the forgiveness application page at Studentaid.gov. "Amidst efforts to block our debt relief program, we are not standing down." "Judge Pittman's decision was about as wrong and weird as any federal court ruling I can recall reading," Tribe said.

☆ Student-loan companies are 'ready to apply' debt cancellation to borrowers' balances, Biden's Education Secretary says
▼ + stars: | 2022-11-07 | by ( Ayelet Sheffey | ) www.businessinsider.com time to read: +4 min

Miguel Cardona said student-loan companies are "ready to apply" debt relief. But they cannot actually cancel any student debt right now because the plan continues to be stalled. That's due to a ruling from the 8th Circuit in response to a GOP-led lawsuit seeking to halt the relief. "Unfortunately, our ability to process loan forgiveness has been paused," Cardona wrote. "We believe strongly that the lawsuits are entirely meritless, and that the debt relief plan is lawful and necessary," he added.

☆ 3.5 million student-loan borrowers in California will get $1.3 billion in relief because the state won't tax Biden's debt cancellation, Gavin Newsom says
▼ + stars: | 2022-11-07 | by ( Ayelet Sheffey | ) www.businessinsider.com time to read: +3 min

Gavin Newsom asked the state to prep early to waive state taxes on student-debt relief. Some other states have already said Biden's student-loan relief will be subject to state taxes. "Californians who get student debt relief shouldn't be hit with taxes for it. This will provide up to $1.3 billion in tax relief for more than 3.5 million Californians," Newsom said in a statement. "We believe strongly that the lawsuits are entirely meritless, and that the debt relief plan is lawful and necessary," Cardona said.

☆ A key benefit for student-loan borrowers in public service just expired. Here's what happens now.
▼ + stars: | 2022-11-01 | by ( Ayelet Sheffey | ) www.businessinsider.com time to read: +3 min

The Public Service Loan Forgiveness waiver expired on October 31. Last October, President Joe Biden's Education Department announced reforms to the Public Service Loan Forgiveness (PSLF) program, which forgives student debt for government and nonprofit workers after ten years of qualifying payments. Well instead, today we are announcing permanent changes to reduce the red tape and the confusing rules that riddle the PSLF program." Part of those changes included a one-time account adjustment to borrowers enrolled in PSLF, along with income-driven repayment plans, to resolve any mistakes on borrowers' payments to date. Beyond that adjustment, PSLF borrowers can expect to see improvements to the program starting next summer.

☆ Biden's Education Department just released its 'monumental' plans to make student-debt payments cheaper for borrowers and streamline targeted loan forgiveness programs
▼ + stars: | 2022-10-31 | by ( Ayelet Sheffey | ) www.businessinsider.com time to read: +6 min

The Education Department released final plans to improve student-loan forgiveness programs on Monday. "We're also protecting borrowers from higher costs by limiting the practice of tacking unpaid student loan interest onto their principal balances." Improvements to targeted loan forgiveness programsBorrower defense to repayment. Public Service Loan Forgiveness. Preventing interest from spiralingIn July, the Education Department previewed its plan to tackle surging interest.

☆ Education Department overhauls federal student loan system, aiming to make it 'simpler, fairer and more accountable'
▼ + stars: | 2022-10-31 | by ( Annie Nova | ) www.cnbc.com time to read: +2 min

The U.S. Department of Education announced on Monday sweeping new changes to the federal student loan system, including additional consumer protections for borrowers and limits on the amount of interest that can accrue on the debt. "Today is a monumental step forward in the Biden-Harris team's efforts to fix a broken student loan system and build one that's simpler, fairer, and more accountable to borrowers," said U.S. Secretary of Education Miguel Cardona, in a statement. The Biden administration will also curb the practice of interest capitalization — in which unpaid interest is added to the borrower's principal. The Public Service Loan Forgiveness Program, which allows public servants and those who work for certain nonprofits to get their debt canceled after a decade, will also get an overhaul. Months that previously didn't qualify toward a borrowers' debt relief, including those when they were in a economic hardship deferment, will be counted.

☆ Student-loan borrowers could see their debt canceled 'in the next two weeks,' Biden says — but the fate of the relief still sits in a conservative court
▼ + stars: | 2022-10-28 | by ( Ayelet Sheffey | ) www.businessinsider.com time to read: +3 min

Biden told NewsNation that student-loan borrowers could get their debt canceled within a few weeks. The relief remains paused following a ruling by the 8th Circuit Court of Appeals. Last week, the conservative 8th Circuit Court of Appeals placed a temporary stay on Biden's debt relief plan, in response to a lawsuit filed by six Republican-led states who argued the up to $20,000 debt cancellation plan would hurt their states' tax revenues. However, it would be surprising is if debt is actually discharged in two weeks, as Biden said, given that the plan is currently on pause. While the Education Department can continue processing applications for the relief as borrowers apply, student-loan companies cannot actually apply the relief to borrowers' accounts yet.

☆ Biden's White House says the GOP's 'MAGA trickle-down economic plan' will increase student-loan payments and raise inflation for Americans
▼ + stars: | 2022-10-27 | by ( Ayelet Sheffey | ) www.businessinsider.com time to read: +4 min

The White House said Republicans will raise inflation through their economic priorities. Biden's student-debt relief plan is currently paused as an appeals court makes a decision on its legality. "Republican officials are suing to block the Biden administration's student debt relief plan. If they succeed, that would mean higher debt payments for the over 40 million Americans who could benefit from up to $20,000 in student debt relief," the White House said. Even before Biden's August announcement of the debt relief, many Republican lawmakers were suspect of its legality.

☆ 2 groups of student-loan borrowers need to take action to get expanded loan forgiveness benefits
▼ + stars: | 2022-10-26 | by ( Ayelet Sheffey | ) www.businessinsider.com time to read: +4 min

The Education Department announced permanent fixes to the Public Service Loan Forgiveness program. It came just days before the PSLF waiver, which expands relief, expires on October 31. As the Education Department announced on Tuesday, though, the waiver may be expiring but reforms will not end there. Borrowers with federal loans that are not direct or managed by the Education Department. To qualify for the PSLF one-time account adjustment, borrowers must have a federal direct loan or a Federal Family Education Loan (FFEL) managed by the department.

☆ Biden's Education Department just announced permanent steps to bring student-loan borrowers in targeted forgiveness programs closer to debt relief
▼ + stars: | 2022-10-25 | by ( Ayelet Sheffey | ) www.businessinsider.com time to read: +5 min

The Education Department announced permanent fixes to the Public Service Loan Forgiveness program. This comes just days before the PSLF waiver expires on October 31 and isn't being extended. Nearly one year ago, the Education Department announced reforms to the Public Service Loan Forgiveness (PSLF) program, which is intended to forgive student debt for government and nonprofit workers after ten years of qualifying payments. "Today, we're encouraging public service workers to take advantage of the program's temporary changes before the deadline on October 31," Education Secretary Miguel Cardona said in a statement. Although the PSLF waiver is soon expiring, the account adjustment will give borrowers one more chance to get their payment counts corrected.

☆ Education Department to reduce 'red tape' on public service loan forgiveness, making it easier for borrowers to qualify
▼ + stars: | 2022-10-25 | by ( Jessica Dickler | ) www.cnbc.com time to read: +2 min

watch nowThe Biden administration announced Tuesday it is making permanent changes to its public service loan forgiveness plan to make it easier for borrowers to have their loans forgiven. "Our team has worked to turn public service loan forgiveness from a promise broken into a promise kept," U.S. Secretary of Education Miguel Cardona said during a press call about the changes. However, from the start, the path to forgiveness has been plagued with problems, making it hard to get relief. Those may include partial, late or lump sum payments, payments made under a different repayment plan and credit for periods in deferment and forbearance. If you have either a Federal Family Education Loan (FFEL) or a Federal Perkins Loan, you now have until July 2023 to consolidate your loans into direct loans with your servicer.

☆ It's about to get easier for government and nonprofit workers with student debt to get loan forgiveness even though the waiver expires in 6 days. Here's what you need to know.
▼ + stars: | 2022-10-25 | by ( Ayelet Sheffey | ) www.businessinsider.com time to read: +5 min

The Education Department announced permanent fixes to PSLF after the waiver expires on Oct. 31. President Joe Biden's Education Department announced temporary reforms in October 2021 to the Public Service Loan Forgiveness (PSLF) program, which intends to forgive student debt for government and nonprofit workers after ten years of qualifying payments. Well instead, today we are announcing permanent changes to reduce the red tape and the confusing rules that riddle the PSLF program. How these changes will work with the PSLF waiverBorrowers who apply for the PSLF waiver by the October 31 deadline will have their payments credited under the waiver. Along with these changes, the department still recommends borrowers take advantage of the PSLF waiver before it expires by checking their eligibility here.

☆ Test scores dropped to lowest levels in decades during pandemic, according to nationwide exam
▼ + stars: | 2022-10-24 | by ( The Associated Press | ) www.nbcnews.com time to read: +7 min

Across the country, math scores saw their largest decreases ever. But while reading scores dipped, math scores plummeted by the largest margins in the history of the NAEP test, which began in 1969. Every region saw test scores slide, and every state saw declines in at least one subject. Several major districts saw test scores fall by more than 10 points. In fourth grade, Black and Hispanic students saw bigger decreases than white students, widening gaps that have persisted for decades.

☆ Biden can't cancel your student debt right now, but you can keep applying for the relief. Here's what you need to know.
▼ + stars: | 2022-10-24 | by ( Ayelet Sheffey | ) www.businessinsider.com time to read: +4 min

This means Biden cannot discharge any student loans until a final decision on the legality of the relief is made. The administration recommends borrowers continue applying for relief during this period. "Amidst Republicans' efforts to block our debt relief program, we are moving full speed ahead to be ready to deliver relief to borrowers who need the help." "As we continue our preparations in compliance with this order, we continue to encourage working- and middle-class Americans to apply for debt relief at studentaid.gov. While this is the first case to succeed in temporarily halting the plan, it's by no means the first attempt to challenge Biden's debt relief.

☆ You should still apply for student loan forgiveness even while it's on hold
▼ + stars: | 2022-10-24 | by ( Kamaron Mcnair | ) www.cnbc.com time to read: +3 min

Late last week, a federal appeals court officially halted President Biden's student debt forgiveness. The plaintiffs argue the debt forgiveness would lead to a loss in tax revenue, causing economic harm to their states. Borrowers should apply for debt forgiveness as soon as possible, experts have previously told Make It. Back in August, the Biden Administration announced it was making good on its campaign promise to provide some relief to student loan borrowers. Check out:Borrowers react to student loan forgiveness: 'A huge weight has been lifted off of my shoulders'Over 700,000 borrowers no longer qualify for student loan relief—how to check if you're still eligibleStudent debt experts say $10,000 isn't enough specifically for Black borrowers—here's whySign up now: Get smarter about your money and career with our weekly newsletter

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