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Studentloans

All articles tagged with #studentloans

politics1 year ago

Trump's Education Agenda: Potential Impacts and Reforms

President-elect Donald Trump's education policies include abolishing the Department of Education, cutting federal funding for schools promoting critical race theory, and barring transgender girls from participating in girls' sports. He plans to implement a "Parental Bill of Rights," allow parents to elect school principals, and support concealed carry for teachers. Unlike President Biden, Trump has not focused on student loan forgiveness. His policies aim to shift control to states and parents, emphasizing traditional values and school choice.

via NewsNation Now|
#departmentofeducation#educationpolicy#politics
finance-and-economy2 years ago

"2023 Student Loan Payments May Qualify for $2,500 Tax Deduction"

Borrowers who resumed student loan payments in 2023 can potentially deduct up to $2,500 of paid interest on their federal tax return without itemizing. Eligibility for the deduction is subject to income limits, loan ownership, payment responsibility, and dependency status. For 2023, phase-outs begin at a modified adjusted gross income of $75,000 for single filers and $155,000 for joint filers. The deduction is available for interest on federal and private loans, origination fees, capitalized interest, and revolving lines of credit used for education expenses. However, interest paid by employers or from tax-free tuition plans cannot be deducted. While federal student loan forgiveness is not federally taxed, some states may tax this forgiveness.

via USA TODAY|
##educationfinance#finance-and-economy
education2 years ago

"Biden Administration Takes Action Against Loan Servicers Amid Repayment Crisis and Borrower Risks"

Federal student loan borrowers are facing difficulties as they resume payments post-pandemic, with issues such as long hold times, processing delays, and inaccurate billing. The Consumer Financial Protection Bureau (CFPB) has highlighted these challenges and the Education Department is taking action against servicers failing to meet obligations, including withholding payments. The Biden administration's attempt to cancel up to $20,000 in student debt was blocked by the Supreme Court, adding to the complexity of the situation. The Education Department's recent actions underscore its commitment to protecting borrowers and ensuring servicers are held accountable for their performance.

via NBC News|
##cfpb#education
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
finance-and-economy2 years ago

"Errors by Student Loan Firms May Threaten Borrowers and Economic Stability, Federal Agency Warns"

The Consumer Financial Protection Bureau (CFPB) has highlighted serious risks to borrowers and the economy due to errors made by student loan servicers. These errors include long wait times, processing delays, and inaccurate billing, which have led to the withholding of payments to three servicers by the U.S. Department of Education. The Department is also placing affected borrowers in administrative forbearance, ensuring they owe no payments and face no interest charges until the issues are resolved. The CFPB's findings underscore the challenges faced by borrowers as they navigate the complexities of student loan repayment, which is particularly concerning given the $1.7 trillion outstanding education debt in the U.S.

via CNBC|
##cfpb#economicrisk