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Income Driven Repayment Plan

All articles tagged with #income driven repayment plan

politics1 year ago

"Republican-Led States Sue to Halt Biden's Student Loan Forgiveness Plan"

Several Republican-led states, including Kansas and 10 others, have filed a lawsuit against the Biden administration over its income-driven SAVE Repayment Plan for student loans, claiming it exceeds presidential authority and unfairly benefits higher-income individuals. The plan, rolled out in August, calculates repayments based on income and family size and provides early debt forgiveness for certain borrowers. The lawsuit argues that the plan is similar to a previous student loan forgiveness plan that was deemed illegal by the Supreme Court. However, research suggests that lower- and middle-income borrowers stand to benefit from loan forgiveness, and it could help address wealth disparities.

via MSNBC|
#biden-administration#income-driven-repayment-plan#lawsuit
education-politics1 year ago

"Republican Lawsuits Target Biden's Student Loan Forgiveness Plan"

Eleven GOP state attorneys general filed a lawsuit to block President Joe Biden's SAVE income-driven repayment plan, arguing that the shortened timeline for debt relief is unconstitutional. The plan, implemented over the summer, aims to provide borrowers with cheaper monthly payments and faster relief. The lawsuit, led by Kansas' Kris Kobach, alleges that the plan flouts the law and ignores Supreme Court decisions. The Education Department official stated that Congress granted the authority to define the terms of income-driven repayment plans, and the SAVE plan is the fourth instance of using that authority. The Biden administration remains committed to providing support and relief to borrowers, despite legal challenges.

via Business Insider|
#biden-administration#education-politics#gop
education-finance1 year ago

"Massive Student Loan Forgiveness Success: Nebraskans and Ohioans Eligible, Tax Implications"

President Joe Biden has announced that about 750 Nebraskans have had a total of $5.3 million in student loan debt canceled through the Saving on a Valuable Education (SAVE) Plan, a new income-driven repayment plan. The plan allows for borrowers with less than $12,000 in debt to have their loans canceled after 10 years of payments, and any borrower enrolled in the SAVE plan can have their debt forgiven after 20 or 25 years, regardless of the amount. The program also sets payments at $0 per month for borrowers making less than $15 per hour and prevents unpaid interest from causing loan balances to grow.

via Lincoln Journal Star|
#debt-cancellation#education-department#education-finance
education1 year ago

"Biden Announces $1.2 Billion Student Loan Debt Cancellation for Income-Driven Repayment Plan Borrowers"

President Biden has announced the cancellation of $1.2 billion in student loan debt for over 150,000 borrowers on the income-driven repayment plan, bringing the total amount of debt cancellation to $138 billion for nearly 4 million Americans. Eligible borrowers will receive automatic relief without needing to take further action, as part of the administration's efforts to provide student debt relief. The move comes ahead of discussions for broader student debt relief plans and is seen as a strategic political move as Biden seeks reelection.

via USA TODAY|
#biden-administration#debt-cancellation#education
education2 years ago

"Graduate School Debt Crisis: Overwhelming Burden on Alums"

A new analysis by the HEA Group reveals that about one-third of graduate school programs leave students with more debt than they initially borrowed, five years after graduation. The study highlights the lack of accountability in graduate programs and raises concerns about the financial burden on students. For-profit and private non-profit institutions are found to be the worst offenders, with Walden University being the most extreme case, where students accumulated $289 million in additional loan interest within five years of graduation. The analysis emphasizes the need for students to earn enough to cover their loan payments and calls for greater scrutiny of graduate programs.

via CBS News|
#accountability#education#for-profit-schools
education2 years ago

"Biden's New Student Debt Plan: Income-Driven Repayment Launches"

The Biden administration is launching a beta website for its new income-driven student loan repayment plan, called the SAVE plan, allowing borrowers to begin submitting applications as federal student loan payments are set to resume in October. The plan aims to lower monthly loan payments for some borrowers and reduce the amount they pay back over the lifetime of their loans. Borrowers can access the beta website and complete the enrollment process, which is estimated to take 10 minutes. The plan determines payments based on income and family size, with some payments as low as $0. The income threshold to qualify for $0 payments has been increased, and more than 1 million additional borrowers are expected to qualify. The full website launch will occur in August, and the plan is expected to cost the federal government between $138 billion and $361 billion over 10 years.

via KABC-TV|
#biden-administration#education#federal-student-loans
education2 years ago

"Biden administration introduces income-driven student debt plan, more loan forgiveness on the way"

The Biden administration is launching a beta website for its new income-driven student loan repayment plan, called the SAVE (Saving on a Valuable Education) plan, allowing borrowers to begin submitting applications for the program as federal student loan payments are set to resume in October. The plan, which applies to current and future federal student loan borrowers, will determine payments based on income and family size, with some monthly payments as low as $0. The income threshold to qualify for $0 payments has been increased, and more than 1 million additional borrowers are expected to qualify. The full website launch will occur in August, and the program is estimated to cost between $138 billion and $361 billion over 10 years.

via CNN|
#biden-administration#education#federal-student-loans
education2 years ago

Biden administration unveils revised student loan plan following Supreme Court setback

The Biden administration has unveiled a new student loan debt initiative after the Supreme Court blocked its plan to wipe away $10,000 to $20,000 in debt for borrowers. The Department of Education will implement the Saving on A Valuable Education (SAVE) plan, which aims to reduce borrowers' payments and provide a transition period to help them resume repayment smoothly. The plan will cut monthly payments to zero dollars for low-income borrowers, save other borrowers at least $1,000 per year, and prevent loan balances from growing due to unpaid interest. Changes to the income-driven repayment plan will take effect this year, with full implementation scheduled for July 2024. The plan also includes forgiveness options for borrowers with smaller balances after a certain number of payments.

via Fox Business|
#biden-administration#debt-relief#education
personal-finance2 years ago

"Student Loan Payment Freeze Ending: Tips for Preparation and Action"

The three-year pause on student loan payments will end this summer, regardless of the Supreme Court's decision on the White House plan to forgive billions of dollars in student loan debt. Borrowers are advised to prepare for payments to restart by using loan-simulator tools to find a payment plan that best fits their needs. Income-driven repayment plans are available for borrowers who need affordable monthly payments based on their income and family size. Borrowers who can't pay may qualify for deferment or forbearance, but interest still accrues during these periods. Payment plans are always available, and borrowers are encouraged to speak with a mentor or financial advisor to educate themselves about their options.

via PBS NewsHour|
#debt-repayment#financial-planning#income-driven-repayment-plan
politics2 years ago

Navigating Student Loan Forgiveness Programs: What You Need to Know

President Joe Biden is expected to criticize Republicans for their budget cuts, which include eliminating the federal student loan forgiveness program and blocking a proposed income-driven repayment plan. The future of Biden's federal student loan forgiveness program will first be decided in the Supreme Court. The Republican proposal would also strip the Department of Education's power to pause student loan payments in the future. The pushback from Congress could continue, especially with Republicans in charge of the House.

via CNN|
#income-driven-repayment-plan#joe-biden#politics