All articles tagged with #student loan
A recent study shows that the success rate for discharging student loans in bankruptcy has increased dramatically to 87%, largely due to updated guidelines introduced in 2022 that make it easier for borrowers to seek relief, offering a potential lifeline for millions struggling with education debt.
President Trump has begun implementing major changes to student-loan repayment plans from his recent spending bill, including new income-based options and borrowing limits, with full rollout expected by July 1, 2026.
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 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 is set to announce new proposals for partial or complete student loan forgiveness, targeting accrued and capitalized interest on federal student loans. The plan, subject to federal rulemaking process, could see 23 million American borrowers having all of their balance growth forgiven, with single borrowers making under $120,000 per year and enrolled in income-based repayment plans eligible for waiver of the entire amount their balance has grown. The proposals also include automating loan forgiveness programs and canceling student debt for borrowers experiencing hardship, but may face potential legal challenges.
Nearly 153,000 borrowers enrolled in Biden's new student loan repayment plan will receive emails notifying them of the cancellation of their remaining federal student loan debt, totaling about $1.2 billion, with a congratulatory message from President Biden. The administration has continued to find ways to help borrowers after the Supreme Court rejected Biden's signature student loan forgiveness program last year. The new SAVE plan offers more generous repayment terms for low-income borrowers, and the Department of Education is conducting a one-time recount of borrowers' past payments to fix administrative failures. Additionally, the Biden administration has expanded debt relief programs for public-sector workers, borrowers defrauded by colleges, and disabled borrowers.
Total household debt in the US reached $17.29 trillion in Q3 2023, driven by increases in mortgage, credit card, and student loan balances. Mortgage balances rose by $126 billion, credit card balances increased by $48 billion, and student loan balances increased by $30 billion. Delinquency rates increased for most debt types, particularly credit cards, with 3% of outstanding debt in some stage of delinquency. The rise in credit card delinquency rates was most pronounced among borrowers between the ages of 30 and 39.
President Joe Biden has vetoed a bill that would have repealed his plan to forgive student debt, which cancels up to $20,000 in debt for tens of millions of borrowers making less than $125,000 per year. Lawmakers who voted for the bill said Biden's plan is too expensive and unfairly benefits college graduates at the expense of taxpayers who didn't go to college. The legislation could still be overturned by the Supreme Court, which is reviewing a legal challenge that could eliminate the program.