All articles tagged with #debt forgiveness
The US government shutdown has halted operations at the Education Department, causing delays in student loan forgiveness and repayment plans, with over a million borrowers facing extended wait times and increased risk of missing out on benefits amid staffing cuts and backlog issues.
Congress passed President Trump's 'Big Beautiful Bill,' which overhauls student loan repayment by eliminating existing income-driven plans, introducing two new options, and imposing new restrictions on borrowing and deferment, potentially making repayment more difficult for borrowers and reducing available assistance programs.
Following Donald Trump's election victory, uncertainty looms over the future of student loan forgiveness, a key initiative of President Joe Biden's administration. Biden's efforts to cancel student debt have faced legal challenges and opposition from Republican-led states, leaving borrowers like Savannah Britt and Sabrina Calazans concerned about resuming payments. Trump's stance on student loans remains unclear, though he has proposed eliminating the Department of Education, which manages federal student loans. The situation highlights the broader financial struggles faced by borrowers amid political and economic shifts.
The Biden administration is canceling $7.4 billion in student debt for 277,000 borrowers, with three groups qualifying for the latest round of forgiveness. This includes those enrolled in the Saving on a Valuable Education (SAVE) plan, borrowers in income-driven repayment plans, and public servants eligible for Public Service Loan Forgiveness (PSLF). The move is part of Biden's efforts to address the $1.7 trillion student debt burden affecting 43 million Americans, but faces legal challenges from Republican attorneys general in 18 states.
President Biden announced a $7.4 billion student loan forgiveness plan for 277,000 borrowers, despite previous Supreme Court rulings against such actions. This comes as food prices in the U.S. continue to soar, with items like eggs, bread, chicken, flour, and butter seeing significant price increases since Biden took office. Critics, including Republican lawmakers, have raised concerns about the cost and legality of the plan, accusing Biden of attempting to buy votes and defying the rule of law.
President Biden has unveiled a new student loan forgiveness plan that could benefit about 30 million borrowers, using the Higher Education Act to provide debt relief. The plan targets 5 major groups of borrowers, including those in repayment for 20 years or more, attendees of low-value programs, and those experiencing hardship in repayment. The Education Department plans to release a formal proposal in the coming months, with potential early implementation, but the plan may face legal challenges from conservative opponents.
President Biden's administration has unveiled a new plan to provide relief to student loan borrowers, aiming to reduce or eliminate debt balances for millions of individuals. The plan includes forgiving excessive interest, discharging long-term balances, and providing relief for attendees of low-value programs, among other provisions. Up to 25 million borrowers could benefit from the proposed measures, which are expected to roll out in the coming months pending a public comment period.
President Biden's administration has unveiled a new plan to provide student loan relief, potentially canceling the debt of over 4 million borrowers and offering relief to more than 10 million others. The plan aims to eliminate interest for 23 million borrowers and could take effect as early as this fall, though the final regulations are still pending. The proposal, which comes after the Supreme Court's rejection of a previous relief plan, has drawn both support and criticism, with legal challenges expected. Biden's focus on student loan relief reflects its significance as an election issue, and the administration has already implemented various measures to relieve billions of dollars in student loans.
President Biden announced that student borrowers who took out less than $12,000 in loans and have been in repayment for 10 years could have their remaining loan balance canceled immediately starting in February, as part of the new Saving on a Valuable Education (SAVE) plan. This plan aims to provide debt relief to community college borrowers, low-income borrowers, and those struggling to repay their loans, and links repayments to income, potentially lowering monthly payments to $0 for some borrowers. About 6.9 million borrowers are enrolled in the new plan, with approximately 3.9 million having monthly payments of $0.
Student loan debt in the US experienced a record decrease of $27.8 billion in the third quarter, the largest drop since the Federal Reserve began tracking student debt in 2006. The decline was attributed to federal loan forgiveness for certain borrowers and borrowers repaying ahead of the restart of required payments on federal loans. However, despite the decrease, the total student loan debt still stands at $1.7 trillion. The Biden administration is working on a new federal loan forgiveness program, set to be finalized next year, to further reduce student loan debt.
The Biden administration announced that it will forgive the student loans of over 800,000 borrowers, totaling $39 billion in debt. This move comes after a Supreme Court rejection of a broader plan to forgive $400 billion in federal student loan debt. Critics argue that the administration is abusing its authority and burdening taxpayers with unpaid debt, while supporters argue that this action aligns with existing congressional authority over income-driven repayment plans. The announcement aims to fix past administrative failures and ensure borrowers receive the forgiveness they deserve.
The U.S. Supreme Court's decision to strike down President Biden's plan to forgive up to $20,000 in student debt affects 1.4 million Texans, who will now have to resume making loan payments. However, a new loan repayment plan called the Saving on a Valuable Education (SAVE) plan is set to begin next year and offers features such as reduced monthly payments, interest forgiveness, and debt cancellation after 10 to 25 years. Advocacy groups are calling for better promotion of income-driven repayment plans, as many borrowers are unaware of their options. The SAVE plan aims to provide relief to low- to middle-income borrowers, but experts argue that more grants and increased funding for public universities are needed to address the root issue of high tuition fees and student debt.
President Biden has announced a new effort to cancel college loans using the Higher Education Act of 1965, after the Supreme Court struck down his previous student debt forgiveness program. The law grants the secretary of education the authority to compromise, waive, or release any right, title, claim, lien, or demand. While some proponents of student debt relief had previously suggested using this law, the Biden administration initially used a different law during the Covid-19 pandemic. The Supreme Court ruled that the administration had stretched that law too far. If Biden's new plan faces a similar lawsuit, it would likely come before the same Supreme Court, raising questions about the wording differences between the statutes. Biden believes the new approach is legally sound and has directed his team to move quickly, although it may take longer than his original plan.
The US Supreme Court is expected to issue a ruling on President Joe Biden's student loan forgiveness plan this month. If approved, the plan would cancel up to $20,000 of student debt for borrowers who received a Pell Grant in college and up to $10,000 for those who didn't. The decision could potentially make 14 million people debt-free, making it easier for them to buy a home, start a family, or open a business. The justices are examining whether the president has the power to implement such a sweeping policy, and some experts believe the lawsuits against the plan could be rejected due to a lack of legal standing. A ruling is expected before July.
The fate of President Biden's student loan forgiveness program, which could provide up to $20,000 in debt relief to millions of borrowers, is in the hands of the Supreme Court, which is expected to make a decision in late June or early July. The program has been on hold due to legal challenges from Republican-led states and conservative groups. If allowed to move forward, the program would forgive federal student loan debt for qualifying borrowers who made less than $125,000 in 2020 or 2021 and received a federal Pell grant while enrolled in college. Payments for federal student loans are set to resume in October, and borrowers are advised to contact their loan servicer with any questions.