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Educationdepartment

All articles tagged with #educationdepartment

educationfinance2 years ago

"Biden Administration Takes Action Against Loan Servicers Amid Repayment Chaos and Risks to Borrowers"

The restart of federal student loan repayments has been marred by significant issues, including late bills, incorrect billing statements, and excessively long customer service wait times. The Education Department penalized its loan servicers for these failures, with Aidvantage, Nelnet, and EdFinancial facing financial penalties based on the number of affected borrowers. The Consumer Financial Protection Bureau highlighted a backlog in processing applications for the new income-driven payment plan, SAVE. Education Secretary Miguel Cardona assured that borrowers with late bills would not owe payments or incur interest during administrative forbearance, which counts towards loan forgiveness programs. Loan servicers and consumer advocates have expressed concerns over the rocky resumption process and the need for better solutions, including calls for student debt cancellation.

via The New York Times|
##educationdepartment#educationfinance
education2 years ago

"Biden Administration Sanctions Loan Servicers as Billing Errors Impact 758K Borrowers"

The U.S. Education Department is penalizing three loan servicing companies for failing to send timely billing statements to an additional 758,000 student loan borrowers, adding to the 2.5 million borrowers previously affected. The companies, Aidvantage, EdFinancial, and Nelnet, will face financial penalties and affected borrowers will not accrue interest or be required to make payments until the issues are resolved. This comes amid a challenging restart to federal student loan payments after a pandemic-induced pause, and coincides with a Consumer Financial Protection Bureau report on backlogs in processing applications for Biden's new loan repayment program. The Education Department's actions reflect a commitment to holding servicers accountable for their contractual obligations.

via POLITICO|
##billingerrors#education
politicseducation2 years ago

"Biden Administration Sanctions Loan Servicers Amid Repayment Mishaps and Risks to Borrowers"

The Biden administration is penalizing student loan servicers Aidvantage, EdFinancial, and Nelnet by withholding over $2 million in payments due to their failure to send timely billing statements to borrowers after the end of the pandemic payment freeze. This action follows a previous $7.2 million withholding from MOHELA for similar issues. The servicers' errors affected over 750,000 borrowers, who will now be placed in administrative forbearance to resolve the issues without penalties. The Education Department is also working on a new student loan cancellation proposal after the Supreme Court rejected the initial plan.

via The Associated Press|
##bidenadministration#educationdepartment
educationpolitics2 years ago

"Biden Administration Sanctions Loan Servicers Amidst Widespread Billing Errors Affecting Students and Economy"

The Biden administration is penalizing student loan servicers Aidvantage, EdFinancial, and Nelnet by withholding over $2 million in payments due to their failure to send timely billing statements after the end of a pandemic payment freeze. The servicers' errors affected over 750,000 borrowers, and this follows a previous $7.2 million withholding from MOHELA for similar issues. Borrowers affected by late statements will be placed in administrative forbearance, and the Education Department is working on a new proposal for targeted student loan cancellation after a previous plan was rejected by the Supreme Court.

via Yahoo Finance|
##bidenadministration#educationdepartment
politics2 years ago

Second Biden Official Quits in Protest of Administration's Stance on Israel-Gaza Conflict

A senior U.S. Education Department official, Tariq Habash, resigned in protest of President Joe Biden's handling of the Israel-Gaza conflict, criticizing the administration for ignoring "atrocities committed against innocent Palestinian lives." Additionally, 17 anonymous staffers from Biden's re-election campaign expressed concern that the president's stance on the conflict could lead to a loss of voters. The State Department has denied observing acts that constitute genocide in Gaza, despite claims and proceedings against Israel. The resignation and the campaign staffers' letter highlight growing dissent within the administration regarding the U.S. approach to the conflict.

via Reuters.com|
##bidenadministration#educationdepartment
education2 years ago

"Understanding the New FAFSA Updates and Challenges for 2024–25 College Aid Applications"

The FAFSA application for the 2024-2025 school year is undergoing a redesign to simplify the process, with a soft launch currently in effect. The new version features fewer questions, allows applicants to list up to 20 colleges, and is available in more languages. Key changes include the requirement for all contributors to create an FSA ID, the introduction of the Student Aid Index to replace the Expected Family Contribution, mandatory IRS Data Retrieval Tool consent, and expanded eligibility for Federal Pell Grants. Due to the soft launch and redesign, students may experience delays in receiving financial aid offers and are advised to monitor the studentaid.gov website for availability and create their FSA IDs in advance.

via The Associated Press|
##applicationchanges#collegestudents