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Income Driven Repayment Plans

All articles tagged with #income driven repayment plans

education-student-loans1 year ago

"Education Dept. Sends Refunds to Student Loan Borrowers After Biden's Debt Cancellation"

The U.S. Department of Education is reviewing the accounts of borrowers who have been making payments on their federal student loans for a decade or more, and has already forgiven almost 3.9 million borrowers' education debt, totaling $138 billion in relief. Many borrowers are also receiving refunds, as the government is identifying those eligible for forgiveness under income-driven repayment plans and the Public Service Loan Forgiveness program. The refunds are being issued to borrowers who have made payments beyond the period at which they should have received forgiveness, due to confusing rules and lender mismanagement.

via CNBC|
#borrowers#education-department#education-student-loans
education2 years ago

"Biden administration forgives over $9 billion in student loan debt, benefiting thousands"

The Biden administration will forgive an additional $4.8 billion in student loan debt for 80,300 borrowers, as a result of fixes to income-driven repayment plans and the Public Service Loan Forgiveness program. Over $2 billion will go to borrowers in income-driven repayment plans, while $2.6 billion will be canceled for borrowers in public service for a decade or more. This brings the total amount of student debt canceled by the Biden administration to nearly $132 billion for over 3.6 million Americans. The move is expected to help President Biden in his reelection campaign, as voters support forgiving at least some student loan debt by a 2-to-1 margin.

via CNBC|
#biden-administration#education#income-driven-repayment-plans
education2 years ago

"Biden administration cancels student loan debt for over 800,000 borrowers, potential impact on stock market"

The Biden administration has begun canceling student loan debt for 804,000 borrowers who qualify for relief under their income-driven repayment plans. Emails will be sent to borrowers notifying them of the debt forgiveness, with around 614,000 people expected to have their entire student loan debts canceled. The relief aims to address administrative failures that left many borrowers paying beyond their payment end dates without receiving forgiveness. The Department of Education expects the process to be completed within weeks, though potential lawsuits could disrupt the discharges. The debt relief is part of the administration's efforts to fix the broken student loan system, with a total of $116.6 billion in debt relief announced so far.

via ABC News|
#biden-administration#borrowers#debt-relief
finance2 years ago

Biden's $39B Student Loan Forgiveness: Tax Implications and Slow Progress

The Biden administration plans to forgive $39 billion in student debt for 804,000 borrowers, which will not trigger a federal tax bill due to a provision from the American Rescue Plan. However, state taxes may still apply depending on where you live. It is important to plan for taxes, as current tax exemptions for income-driven repayment plans are temporary. Seeking professional advice and potentially switching plans can help minimize future tax liability. There is a possibility that the provision for tax-free student loan forgiveness could be extended.

via CNBC|
#american-rescue-plan#biden-administration#finance
education2 years ago

Biden's Controversial Student Loan Forgiveness Plan Sparks Legal and Financial Concerns

The recent announcement by the Biden administration to forgive $39 billion of student loan debt for borrowers in income-driven repayment plans is different from the broad debt-cancellation plan that was struck down by the Supreme Court. The new action is based on a different legal precedent and focuses on borrowers who have been in repayment for decades. Experts argue that the plan is on "sound legal footing" as it aligns with Congress' authorization for loan forgiveness in income-driven repayment plans. Questions over legality are largely irrelevant for borrowers who receive relief before any potential lawsuits arise.

via CNBC|
#biden-administration#department-of-education#education
education2 years ago

"Biden administration grants $39 billion student debt relief to over 800,000 borrowers"

The Biden administration announced that $39 billion in student debt will be forgiven for 804,000 borrowers in the coming weeks due to fixes in the counting of qualified monthly payments under existing income-driven repayment plans. This action addresses past administrative failures and errors that miscounted qualifying payments. Since taking office, President Biden's administration has approved $116.6 billion in student debt relief for over 3.4 million Americans. Despite legal challenges and criticism from Republicans, the administration continues to pursue avenues for debt cancellation and easier loan forgiveness. The Department of Education is also implementing a new income-driven repayment plan called SAVE, which will cut monthly bills in half and cancel remaining debt after 10 years of payments.

via CNN|
#biden-administration#borrowers#department-of-education
education2 years ago

"Biden-Harris Administration Forgives $39 Billion in Student Debt for 800,000 Borrowers"

The Biden-Harris Administration will automatically forgive $39 billion in federal student loans for over 804,000 borrowers as a result of fixes made to income-driven repayment plans. This brings the total student loan forgiveness approved by the administration to over $116.6 billion for more than 3.4 million borrowers. The fixes address historical failures in accurately counting qualifying payments made under income-driven repayment plans, ensuring borrowers receive the forgiveness they deserve. The Department of Education will continue to identify and notify eligible borrowers every two months until next year. Additionally, the administration has implemented the Saving on a Valuable Education (SAVE) plan, which offers more affordable payment options for borrowers going forward.

via US Department of Education|
#biden-harris-administration#borrowers#department-of-education