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    U.S. President Joe Biden delivers remarks about the student loan forgiveness program from an auditorium on the White House campus in Washington, October 17, 2022.Leah Millis | Reuters The Supreme Court on Thursday said it will hear arguments in a case challenging the Biden administration's student loan debt relief plan, but kept an injunction in place that prevents that program from taking effect for now. Oral arguments in the case were set for February in the order released Thursday. The administration on Nov. 18 asked the Supreme Court to lift an injunction against the student loan relief program, which would cancel hundreds of billions of dollars in federal debt. The U.S. 8th Circuit Court of Appeals in St. Louis issued that injunction on Nov. 14 in response to a legal challenge by six Republican-led states. Days earlier, Judge Mark Pittman in U.S. District Court in Texas ruled the debt relief plan was unconstitutional, in response to another lawsuit challenging the program. That ruling, which also applies nationwide, remains in effect. The Biden administration had asked the federal 5th Circuit...
    A broad coalition of legal scholars, attorneys, labor unions, and advocates filed amicus briefs this week imploring the U.S. Supreme Court to reinstate the Biden administration's student debt cancellation program, which lower courts have put on hold as Republican officials and right-wing groups attempt to block relief for tens of millions of borrowers. The series of filings includes a 32-page brief led by the founders of the Student Loan Law Initiative, a project of the University of California, Irvine School of Law and the Student Borrower Protection Center. The law scholars argue that the Biden administration is perfectly within its right to forgive student loan debt "because Congress, through the plain language of the relevant statute, delegated precisely the authority exercised here." "The relevant statutory text is clear as sunlight," the brief reads. "The HEROES Act of 2003 authorizes the secretary of education to 'waive or modify any statutory or regulatory provision applicable to the student financial assistance programs under [T]itle IV of the [Higher Education] Act [of 1965] as the secretary deems necessary in connection with a... national emergency.'...
    Despite national polls showing debt relief has popular and bipartisan support, Republicans have worked against Biden’s actions at every step. The Department of Education announced on Tuesday that a moratorium on student loan repayments would be extended while the Department of Justice undertakes appeals of lower court rulings against President Joe Biden’s plan for permanent debt relief. The extension will remain in effect until either 60 days after the Supreme Court reviews and resolves the case, or 60 days after June 30, 2023, the department’s announcement stated. Republicans have attacked the Biden administration for their debt relief actions despite bipartisan support amongst voters for them. The Biden administration announced its student debt relief plan in August, estimating that 40 million Americans would benefit from the action. In response to a challenge from six Republican state attorneys general, the U.S. 8th Circuit Court of Appeals issued an injunction that required the administration to pause accepting applications for relief on Nov. 11. Secretary of Education Miguel Cardona on Tuesday called conservative court challenges to Biden’s relief plan callous, noting in a statement that they have “caused tremendous financial uncertainty for millions of borrowers who...
    Student debt relief campaigners on Tuesday welcomed U.S. President Joe Biden's decision to yet again extend a temporary pause on federal loan payments in response to Republican lawsuits targeting his cancellation plan. "I'm completely confident my plan is legal. But right now it's on hold because of these lawsuits. We're not going to back down though, on our fight to give families breathing room," Biden said in a video, noting his administration has asked the U.S. Supreme Court to weigh in. Stressing that "it isn't fair to ask tens of millions of borrowers eligible for relief to resume their student debt payments" while waiting on a court ruling, the president explained that Education Secretary Miguel Cardona is extending the freeze to no later than June 30, 2023. Payments would restart 60 days later. Unveiled in August, Biden's plan would cancel up to $10,000 in debt for federal borrowers with incomes below $125,000 for individuals or $250,000 for households. Borrowers who received Pell Grants would have up to $20,000 forgiven. After the GOP responded with a flurry of lawsuits, the Department...
    President Biden is planning to extend the pause on student loan payments by at most another eight months, keeping interest from accruing on the debts until legal battles play out.   Amid the legal back-and-forth over the Biden administration's plan, federal borrowers have been left in limbo as to whether up to $20,000 of their debts will be erased. Payments were set to begin again January 1, but the White House will now push that date back to either 60 days after the plan is given court-ordered approval to move forward or 60 days after June 30 if the litigation has not been resolved by then.  'Callous efforts to block student debt relief in the courts have caused tremendous financial uncertainty for millions of borrowers who cannot set their family budgets or even plan for the holidays without a clear picture of their student debt obligations, and it's just plain wrong,' said Secretary of Education Miguel Cardona in a statement.  'We're extending the payment pause because it would be deeply unfair to ask borrowers to pay a debt that they wouldn't...
    President Joe Biden delivers remarks on protecting Social Security and Medicare and lowering prescription drug costs in Hallandale Beach, Florida, on Nov. 1, 2022.Anadolu Agency | Anadolu Agency | Getty Images The Biden administration on Tuesday announced that it will extend the payment pause on federal student loans while its forgiveness plan remains blocked in the courts. Federal student loan bills were scheduled to resume in January. The administration's move comes in response to a federal appeals court ruling last week that imposed a nationwide injunction on the debt relief plan. This is breaking news. Please check back for updates.TVWATCH LIVEWATCH IN THE APPUP NEXT | ETListen
    Olga Ryazantseva | Istock | Getty Images After applying for student loan forgiveness, some borrowers are receiving what looks like good news from the U.S. Department of Education. "We reviewed your application and determined that you are eligible for loan relief under the Plan," according to a letter sent out by Education Secretary Miguel A. Cardona. Yet the notice goes on to say that, "Unfortunately, a number of lawsuits have been filed challenging the program, which have blocked our ability to discharge your debt at present." More from Personal Finance:Credit card balances jump 15%60% of Americans are living paycheck to paycheckThese steps can help you tackle stressful credit card debt Not long after President Joe Biden announced his sweeping plan to cancel up to $20,000 in student debt for millions of Americans, a number of conservative groups and Republican-backed states attacked the policy in the courts. Two of these lawsuits have been successful in at least temporarily halting the relief, and the Education Department closed its loan cancellation portal this month. The Biden administration believes its plan is legal and...
    Bloodua | Istock | Getty Images With the legal blows to President Joe Biden's student loan forgiveness plan mounting, it's possible that the administration could extend the payment pause on the monthly bills yet again, experts say. "I'm sure they have to be considering it as an option," said Scott Buchanan, executive director of the Student Loan Servicing Alliance, a trade group for federal student loan servicers. If the president's policy remains blocked in the courts by the end of the year, higher education expert Mark Kantrowitz said, "the Biden Administration is likely to further extend the payment pause." More from Personal Finance:3 steps to take if you've been laid offTips to help families afford monthly expenses amid inflationHow to use pay transparency to negotiate a better salary The Washington Post reported this week that officials in the White House are beginning to discuss the possibility of another extension if the lawsuits continue to thwart its loan forgiveness plan. It would be the eighth time borrowers have been given more time. Federal student loan payments have been on pause since...
    By Jim Salter | Associated Press ST. LOUIS — President Joe Biden’s plan to forgive student loan debt for millions of borrowers was handed another legal loss Monday when a federal appeals court panel agreed to a preliminary injunction halting the program while an appeal plays out. The ruling by the three-judge panel from the 8th U.S. Circuit Court of Appeals in St. Louis came days after a federal judge in Texas blocked the program, saying it usurped Congress’ power to make laws. The Texas case was appealed and the administration is likely to appeal the 8th Circuit ruling as well. The plan would cancel $10,000 in student loan debt for those making less than $125,000 or households with less than $250,000 in income. Pell Grant recipients, who typically demonstrate more financial need, would get an additional $10,000 in debt forgiven. The cancellation applies to federal student loans used to attend undergraduate and graduate school, along with Parent Plus loans. The Congressional Budget Office has said the program will cost about $400 billion over the next three decades. A federal...
    by Reagan Reese   A Texas federal judge blocked President Joe Biden’s student loan forgiveness program on Thursday, calling it an “unconstitutional exercise of Congress’s legislative power.” U.S. District Judge Mark Pittman ruled that the Department of Education’s student loan forgiveness program is illegal following a lawsuit by the Job Creators Network Foundation, which argued the program violated federal procedures because borrowers were not able to comment on the program. The student debt relief program unveiled in August would cancel $10,000 worth of student debt to those making under $125,000 per year. In October, a federal appeals court temporarily halted the student loan forgiveness program prohibiting the Biden administration from “discharging any student loan debt.” The ruling came after Nebraska, Missouri, Arkansas, Iowa, Kansas and South Carolina sued the Biden administration for the student debt program, alleging it to be unconstitutional. “In this case, the HEROES Act — a law to provide loan assistance to military personnel defending our nation — does not provide the executive branch clear congressional authorization to create a $400 billion student loan forgiveness program,” Pittman’s ruling said. Despite the court’s...
    U.S. President Joe Biden is flanked by U.S. Secretary of Education Miguel Cardona as he speaks about administration plans to forgive federal student loan debt during remarks in the Roosevelt Room at the White House in Washington, U.S., August 24, 2022.Leah Millis | Reuters The Biden administration has stopped accepting applications for federal student loan forgiveness after a court struck down the plan on Thursday evening. "Courts have issued orders blocking our student debt relief program," according to a note on the forgiveness application page at Studentaid.gov. "As a result, at this time, we are not accepting applications. We are seeking to overturn those orders." This is breaking news. Please check back for updates.TVWATCH LIVEWATCH IN THE APPUP NEXT | ETListen
    SKLA | iStock | Getty Images Close to 26 million Americans have applied for student loan forgiveness, and the Biden administration has already approved 16 million of the requests, the White House said on Thursday. Yet its entire loan cancellation plan could be in jeopardy due to the legal challenges brought by Republicans, it warned. "If Republican officials get their way, tens of millions of Americans' monthly costs will rise dramatically when student loan payments resume next year," according to a statement by the administration. "Working and middle-class Americans who could have up to $10,000 or $20,000 of their student debt relieved under the Biden Administration's plan will remain under the burden of loan debt — preventing them from pursuing the dream of homeownership, saving up for retirement, or starting small businesses."Temporary stay on forgiveness still in placeSince the White House unveiled its plan in August to cancel $10,000 for most student loan borrowers, and up to $20,000 for those who received grants for low-income families, it has faced at least six lawsuits. Most recently, a legal challenge from six...
    By Katie Lobosco and Tierney Sneed | CNN A federal appeals court put a temporary, administrative hold on President Joe Biden‘s student loan forgiveness program, barring the administration from canceling loans covered under the policy, while it considers a challenge to the policy. The order came from the 8th US Circuit Court of Appeals, in a case brought by six Republican-led states. A district court dismissed the case earlier this week and the states are now asking the appeals court for a preliminary injunction halting the policy. The 8th Circuit gave the administration until Monday to respond to that request, and the states will be able to reply to that response by Tuesday. The states had asked the appeals court to act before Sunday, the earliest date the Biden administration had said it would grant student loan discharges. About 22 million people have already applied for debt relief since the application opened on October 14. The lawsuit, which was filed last month, was dismissed on October 20 by a lower court judge who ruled that the plaintiffs did not have...
    A federal appeals court has blocked the Biden administration's plan to forgive hundreds of billions of dollars of federal student loan debt, with an Arkansas federal court saying they needed more time to rule on an emergency request by Republican-led states to block the policy. The Biden administration had previously said in court filings it could begin canceling student loans as early as this Sunday.  Joe Biden is seen on Friday delivering remarks on student debt relief at Delaware State University in Dover
    Caroline Purser | The Image Bank | Getty Images The Biden administration could start discharging millions of Americans' student debt as soon as this Sunday, Oct. 23. This is possible as some of the legal challenges brought against the sweeping policy by critics fail in courts. A taxpayers' group in Wisconsin earlier this week requested that the U.S. Supreme Court immediately block Biden's plan to cancel up to $20,000 in federal student debt for borrowers, but the court refused to do so. Meanwhile, a federal district court in Missouri on Thursday tossed out the lawsuit brought by six Republican-led states, which accused the president of overstepping his power. Judge Henry E. Autrey of the Federal District Court in St. Louis said the states did not have sufficient standing to sue. The main obstacle for those hoping to foil the president's action has been finding a plaintiff who can prove they've been harmed by the policy, experts say. More from Personal Finance:How households are preparing for possible recessionThese colleges are promising zero student loansHere's the latest inflation breakdown — in one chart...
    Supreme Court Justice Amy Coney Barrett Supreme Court Justice Amy Coney Barrett has rejected an emergency bid from a taxpayers group to stop President Biden's student loan relief plan from starting on Sunday. Barrett did not comment in turning away the appeal from the Brown County Taxpayers Association, which also has lost rounds in lower federal courts.  The group wrote in its Supreme Court filing that it needed an emergency order to put the program on hold because the administration could begin canceling outstanding student debt as soon as Sunday. Barrett oversees emergency appeals from Wisconsin and neighboring states. She acted on her own, without involving the rest of the court. She also did not ask the Biden administration for a response, indicating the application did not have serious legal standing. Supreme Court Justice Amy Coney Barrett has rejected an emergency bid from a taxpayers group to stop President Biden's student loan relief plan from starting on Sunday Student loan forgiveness advocates attend a press conference on Pennsylvania Avenue in front of the White House in Washington, DC, USA, 25...
    As a federal court in her home state of Missouri heard arguments Wednesday in a case that could determine the fate of federal student debt cancellation, Democratic Rep. Cori Bush condemned GOP attorneys general for attempting to tank much-needed economic relief for tens of millions of borrowers. "Efforts to undermine the Biden administration's student loan cancellation program are the latest example of Republicans and student loan servicers prioritizing profits over people and corporations over constituencies," Bush said in a statement as a group of GOP attorneys general—including Missouri AG Eric Schmitt—made their case for an injunction against student debt forgiveness. The Republican plaintiffs claim in their lawsuit that the Biden administration's student debt cancellation plan would harm the Missouri Higher Education Loan Authority (MOHELA) by depriving it of "the ongoing revenue it earns from servicing" privately held Federal Family Education Loan Program (FFELP) loans. In an effort to undercut such legal claims of harm, the Biden administration decided last month to scale back its debt forgiveness program to exclude many student borrowers with FFELP loans, denying relief to hundreds of...
    Arizona Attorney General Mark Brnovich filed another lawsuit against the Biden administration on Thursday, challenging the president’s authority to cancel student loan debt. He argued that it goes contrary to several recent Supreme Court decisions striking down federal agencies’ assertion of power never granted to them by Congress. The Biden administration intends to cancel $10,000 to $20,000 of student loan debt for people who make less than $125,000 or $250,000 annually for a married person filing jointly. In his lawsuit, Brnovich said, “This loan cancellation … is a naked handout by one administration and one party to favored political classes (college graduates and those employed by the higher education industry) at the expense of taxpayers everywhere.” Brnovich labeled the move “the most expensive unilateral executive action ever attempted by any President,” which “further inflicts greater harm on the fiscal solvency of the United States than any other Presidential action ever.” This is because “its cost exceeds the entire amount that Congress has appropriated for the Department of Education for the last five years.” The brief noted how even Speaker of...
    Progressive Democrats are reeling over President Joe Biden's decision to change the qualifications for student loan forgiveness not to include some non-federal government debts as the administration faces impending lawsuits over the relief plan. The White House quietly announced a change in its student debt forgiveness program on Thursday that could exclude up to 4 million borrowers with private loans backed by the government. The change was so quiet, in fact, that lawmakers weren't even informed of the altering qualifications. Democratic Representative Yvette Clarke said the change need to be 'revisited' to not 'dash' the hopes of people who thought they were receiving relief and now will not. The u-turn by the federal government comes after the first legal challenges were filed to the policy. It also follows criticism of the huge cost the plan would levy on taxpayers – even those who would not benefit from the forgiveness. Critics claim the plan is an illegal use of Biden's executive power. Senator Elizabeth Warren, one of the main champions of wide-spread student loan forgiveness, suggested she wasn't informed of the...
    "The Biden administration told several million people they'd see their debt reduced by $10-20K, and a month later quietly wrote 'just kidding' on a website," said one affected borrower. Progressives on Thursday decried the Biden administration's decision to exclude millions of people from its student loan relief plan, a move meant to thwart legal challenges like the lawsuit filed on the same day by six Republican-led states seeking to block President Joe Biden's proposal to cancel up to $20,000 of federal educational debt per borrower. Politico reports worries over legal challenges from the student lending industry prompted the U.S. Department of Education to reverse course and no longer allow borrowers with Federal Family Education Loan Program (FFEL) and Perkins loans—which are guaranteed by the federal government but held by private lenders—to participate in the debt cancellation plan. Biden announced last month that his administration will forgive $10,000 in federal student loan debt for borrowers who attended college without Pell Grants and who earn less than $125,000 individually, or $250,000 as a household. Borrowers who received Pell Grants will have $20,000...
    After being hit by criticism for ballooning cost estimates of its student loan and facing two lawsuits, the Biden administration announced a change that could leave out an estimated four million borrowers from the relief program. The Education Department announced the change in a release Thursday specifically about Federal Family Education Loans, which are bank loans backed up by federal guarantees. They used to major component of federal student loans, but stopped after a major Obama administration student loan overhaul in 2010 that shifted to direct loans from the government. Nevertheless, about 4 million people still have FFEL loans on the books, according to government data identified by Politico, which flagged the change.  President Joe Biden's student loan debt forgiveness program provides relief of up to $20,000 to individuals.  In the weeks since President Joe Biden announced his program to provide relief of $10,000 to help individuals wipe away student debt, and $20,000 for Pell grant recipients, borrowers have been allowed to reorganize their FEEL loans to qualify. The initial policy stated that FFEL and Perkins loans qualified. But on...
    The lawsuit states that broad student debt relief would place a substantial burden on taxpayers, the majority of whom either did not attend college, attended but avoided debt, or already paid off their student loan debt. The case argued that the plaintiff, Frank Garrison, who lives in Indiana, would not benefit from the loan forgiveness. “Mr. Garrison and millions of others similarly situated in the six relevant states will receive no additional benefit from the cancellation—just a one-time additional penalty,” the suit read. The Biden administration claimed authority to write off student loans by citing the 2003 HEROES Act, intended to aid Iraq War veterans, which authorized the secretary of education to reduce or eliminate debt during a “national emergency.” The lawsuit argues that the debt cancellation is not justified by the act because “the cancellation is neither ‘necessary,’ nor is it targeted at harms that are ‘a direct result of a... national emergency.’” The complaint accused the Department of Education of failing to “undertake the notice-and-comment process required for rulemaking, much less solicit any public input.”...
    That memo read:The HEROES Act, first enacted in the wake of the September 11 attacks, provides the Secretary broad authority to grant relief from student loan requirements during specific periods (a war, other military operation, or national emergency, such as the present COVID-19 pandemic) and for specific purposes (including to address the financial harms of such a war, other military operation, or emergency).The Secretary of Education has used this authority, under both this and every prior administration since the Act’s passage, to provide relief to borrowers in connection with a war, other military operation, or national emergency, including the ongoing moratorium on student loan payments and interest.Questions of legality aside, Charles Cooke at National Review explained the implications of Biden's admission. "But, even if one were to ignore all [of the questions of legality], one could still not get past the fact that the powers to which Biden laid claim can be applied only when there is an active emergency, and that the active emergency Biden is citing has now passed," Cooke wrote. For what it's worth, the Biden administration...
    Washington (CNN)Some Republicans are working on a legal strategy to overturn President Joe Biden's student loan forgiveness plan, which could potentially stop millions of Americans from receiving up to $20,000 in debt cancellation."I've been working with some colleagues trying to develop the best legal theory of moving to sue the Biden administration over the student loan forgiveness policy," Arizona Attorney General Mark Brnovich, a Republican, told CNN Thursday. "I think any real lawyer knows that there is not a legal basis for doing what they're doing," he added, calling the policy "fundamentally unfair."Biden announced last week that the Education Department would cancel up to $10,000 of federal student loan debt for individuals who make less than $125,000 a year and married couples or heads of households who make less than $250,000 annually. Those borrowers who also received a Pell grant while enrolled in college are eligible to receive up to $20,000 in forgiveness. Everything you need to know about Bidens student loan forgiveness programThe Biden administration has said that Congress previously granted the executive branch the authority to broadly...
    Inez Stepman is a senior policy analyst at Independent Women's Forum and host of High Noon with Inez Stepman You can be outraged over President Joe Biden's politically craven debt forgiveness giveaway to his most loyal voters – and believe me – I am. But you must admit – it's rather diabolically clever. The administration has said it was 'about giving people a fair shot.' The opposite is true. It punishes the very people who played by the rules. President Biden has characterized this bailout as a lifeline to those struggling financially. Wrong again. It's Robin Hood in reverse: It robs from the poor and gives to the rich. And aren't Democrats always harping on about how the rich already have too much? Biden's student debt forgiveness plan is not about fairness or the American dream or campaign pledges. It's about rewarding Democrats' key constituencies: the upper middle class and universities operating as essential training grounds for the left's cultural revolution. It's that simple. And cynical. The plan so far involves forgiving $10,000 in loans for debtors making up to...
    Harris claimed critics of the plan voted to give a "tax cut" to the "richest Americans." But as TheBlaze reported, numerous Democrats competing in tight elections ahead of the midterms openly criticized Biden's plan last week, suggesting the issue is not one Democrats believe will curry favor with moderate voters. Meanwhile, Harris' claim about Americans who earn less than $75,000 is also overblown. First, Penn Wharton found that "about 75% of the benefit [is] accruing to households making $88,000 or less." Second, the median individual income in America is roughly $67,500. Thus it would make sense that the majority of debt forgiveness would benefit individuals who earn less than $75,000.So who is paying?That question remains unanswered. Last Friday, a top White House official told reporters the administration views the plan as "fully paid for" by $1.7 trillion in deficit reduction that is attributed to pandemic-related spending that has since dissipated. But that deficit reduction was always going to happen, with or without Biden. The administration, therefore, has not offered a serious answer to the question.
    (CNN)The White House struggled for a second straight day to answer questions about President Joe Biden's student loan forgiveness plan, simultaneously claiming that the President waited for the plan to be "fiscally balanced" before unveiling it and that there was no way to know how much the plan would cost. At a Thursday press briefing, White House press secretary Karine Jean-Pierre continued to insist that the plan to cancel thousands of dollars in federal student loan debt for millions of Americans would "be fully paid for because of the because of the work that this President has done with the economy." Asked specifically if the administration had a better idea about the total price tag for the program, Jean-Pierre began her answer by saying "the President's record on fiscal responsibility is second to none" before detailing a list of his economic accomplishments. But she never gave an estimate on how much the plan could cost. "All of this when it comes to cost will also depend on how many of the loans canceled were actually expected to be repaid, it...
    The Biden administration announced a sweeping plan to wipe out debt and reform student loan borrowing on Wednesday aimed at benefitting 40 million Americans who owe $1.7 trillion in federal student debt.  Here's what we know about the plan:   Who is eligible?  Those who make under $125,000 as a single person or $250,000 for joint filers are eligible for up to $10,000 in debt forgiveness for their federal loans. For those who received Pell Grants, $20,000 of their debt can be wiped out if they fall under the same salary limits.  It does not matter how much college the borrower attended - forgiveness is offered to everyone from those who dropped out to those who completed graduate school.  Additionally, those who have made payments for 10 years and have loan balances of under $12,000, their debt is forgiven. Previously it took 20 years to have such balances canceled.   How do you apply?  Nearly 8 million people may have their debt canceled automatically because the Education Department already has their income information on file, according to the Federal Student Aid (FSA)...
    President Joe Biden has finally revealed his plan to forgive as much as $20,000 in student loan debt for most of the 47 million Americans with federal student loans, canceling more than $300 billion in debt used to finance higher education. Under the plan, borrowers who paid for higher education with Pell Grants, provided for students who demonstrate exceptional financial need, will be forgiven $20,000. Borrowers who received other forms of federal student loans will be forgiven $10,000. Both debt cancellations apply only to borrowers who earned less than $125,000 per year in 2020 or 2021, or $250,000 if they are part of a household. Current students, as well as former students, are eligible for debt forgiveness. The plan also caps undergraduate loan payments at five percent of a borrower’s monthly income, cutting the cap in half. In a briefing ahead of Biden’s remarks, a senior administration official told reporters that roughly 43 million will be eligible for debt forgiveness, and that 20 million Americans will have their student loan debt “completely canceled.” The administration official also noted that 60...
    You're welcome, fellow kids.Shawn Thew/Pool/CNP/Zuma Fight disinformation: Sign up for the free Mother Jones Daily newsletter and follow the news that matters.More than two years after Joe Biden first floated the idea on the campaign trail, the president finally announced a sweeping student loan forgiveness plan that will relieve the debt burdens of millions of Americans. Biden said on Wednesday that he would forgive up to $10,000 in student loans for borrowers who make less than $125,000 a year, or households that make less than $250,000. Students who have received Pell Grants can expect up to $20,000 in loan forgiveness. He also announced that the current pause on student loan payments, which was set to lapse on Aug. 31, will continue until January. NEW: Biden announces $10,000 federal student loan cancellation per student making $125K or less per year. – 4-month extension of the student loan pause– This pause will be the final one– Repayments to restart in Jan– Additional $10K canceled for Pell grant recipients pic.twitter.com/1LR17w3x2Z — philip lewis (@Phil_Lewis_) August 24, 2022 Of the 43 million Americans...
    CNN reported Monday that the Biden administration is on the cusp of deciding whether to forgive $10,000 in student loan debt for those earning less than $125,000. It’s not only weighing the idea. It’s “leading toward” it, wrote reporters MJ Lee and Phil Mattingly. The administration is also considering another extension of the pause in student loan repayments that was part of the overall response to the covid pandemic. The moratorium has thus far been extended four times. The current one ends September 1. As of this writing, the president has not indicated whether he will extend it. He will, though. We should have little doubt. READ MORE: President to make major Wednesday announcement about student loan forgiveness Only an idiot would let student loan payments resume before the midterms. Joe Biden is many things. An idiot is not one of them. As for $10,000 in relief, no one knows, but the smart money is on that very policy. The White House has been teasing the press corps with bits and pieces, for instance, Monday’s report and today...
    Joe Biden could make an announcement as early as Wednesday on potentially forgiving $10,000 in federal student loan debt for each borrower earning less than $125,000 annually. The impending potential announcement comes as borrowers' nail-biting continues with the fast-approaching August 31 loan moratorium deadline. People familiar with discussions told Bloomberg that some low-income borrowers who received Pell grants could also receive a higher amount of debt forgiveness. A new analysis released Tuesday from the Penn Wharton Budget Model estimates that forgiving student loan debt for this income demographic could cost between $300 and $980 billion over 10 years. It also notes that the majority of relief would go towards borrowers who are within the top 60 percent of earners. While final details of an impending announcement on the future of student loan forgiveness are still being worked out, President Biden's White House has been signaling for months the potential canceling of a certain amount for each individual borrower. The Biden administration is leaning more toward canceling $10,000 in student loan debt for borrowers making less than $125,000 annually – and...
    (CNN)White House officials have been weighing -- and leaning toward -- the cancellation of up to $10,000 in student loan debt per borrower tied to an income threshold, CNN has learned. According to multiple sources familiar with the discussions, the plan is designed to offer the forgiveness to individuals who earn less than $125,000 per year. In addition to that baseline of student loan debt forgiveness for individuals who fall under a certain income level, administration officials have also recently discussed the possibility of additional forgiveness for specific subsets of the population, according to sources familiar with internal discussions in the administration.The announcement could come as early as Wednesday, but it is not clear that a final decision on the details of the announcement -- as well as the timing -- has been made, and there could always be eleventh hour changes. The White House is also expected to address in the coming days whether to extend again the current pause on federal student loan payments, which is set to expire on August 31.Payments have not been required on most...
    (CNN)US Education Secretary Miguel Cardona said Sunday that Americans can expect a decision from the Biden administration on student loans in the "next week or so" as a pause on federal student loan payments is set to expire on August 31.With some 10 days to go, Americans have been left guessing whether President Joe Biden will extend the current moratorium or, perhaps, forgive some of their debt. "We've been talking daily about this, and I can tell you the American people will hear within the next week or so from the President and the Department of Education on what we're going to be doing around that," Cardona told NBC's Chuck Todd on "Meet the Press."He did not elaborate on the details, saying he would not get ahead of the announcement. "I don't have any news to announce today," he said. Read MoreThe White House has previously said that Biden will have something to announce ahead of the August 31 deadline.Biden administration cancels another $3.9 billion in student loan debt for former for-profit college studentsPayments have not been required on most...
    Mehdi Hasan dedicated a segment of last night’s show to whether the Joe Biden administration should cancel some or all student loans. His guests Nina Turner, a veteran of Bernie Sanders’ campaigns, and Charlie Sykes, co-founder of The Bulwark, took sides for and against. It was a thorough-going conversation (though Turner’s eye-rolling was a bit much). It was, however, familiar – and that fact is worth dwelling on. A debate between two very interesting and forceful commentators felt like it was floating above the earth, unattached to concrete developments on the ground yet shaping them all the same. To cancel or not to cancel is, to me, not as interesting as is the dulling sameness of a student loan debate. This dulling sameness suggests that those involved in the debate are not sufficiently paying attention to a president, who, according to one expert, has canceled more student loan debt than any president in American history. READ MORE: Progressives urge president to cancel student debt as pandemic pause period nears its conclusion If those involved in the debate were...
    Previously, the Education Department canceled $1.9 billion in federal loan debt for ITT Tech students who applied for relief. With the new broad cancellation announcement, borrowers will not be required to apply to have their debt forgiven. Chief of Federal Student Aid Richard Cordray accused the college of defrauding “hundreds of thousands of students.” He said, “By delivering the loan relief students deserve, we are giving them the opportunity to resume their educational journey without the unfair burden of student debt they are carrying from a dishonest institution.” So far, the Biden administration has canceled $32 billion of student loan debt for 1.6 million borrowers – and that number keeps climbing. In May, the president announced plans to forgive up to $10,000 per student loan borrower. An official decision has not been reached for general federal student loan forgiveness. An announcement is expected by the end of the month. Since March 2020, 26.78 million borrowers have not been required to make payments on their loans. The forbearance period is set to expire on August 31.
    CHANTILLY, VA SEPTEMBER 6: The Chantilly Campus of ITT Technical Institute sits closed and empty on Tuesday, September 6, 2016, in Chantilly, VA.The Washington Post | The Washington Post | Getty Images The U.S. Department of Education announced on Tuesday that it will cancel all remaining federal student debt taken on by borrowers who were defrauded by ITT Technical Institute since 2005, delivering $3.9 billion in relief to some 208,000 people. ITT Educational Services was at one point one of the largest operators of for-profit technical schools in the U.S., and shut down in 2016. Borrowers shouldn't have to apply for the relief, the Education Department said. More from Personal Finance:30 companies that help employees pay off student loansHere's how to save on groceries amid food price inflationTypical job switcher got pay raise of nearly 10%, study finds "The evidence shows that for years, ITT's leaders intentionally misled students about the quality of their programs in order to profit off federal student loan programs, with no regard for the hardship this would cause," said U.S. Secretary of Education Miguel Cardona,...
    Washington (CNN)The Department of Education said Tuesday that it will cancel $3.9 billion in student loan debt for 208,000 students who attended the now-defunct for-profit ITT Technical Institute -- bringing the total amount of loan discharges approved under President Joe Biden to nearly $32 billion.Some former ITT Tech students were already eligible for debt cancellation, but now the department will automatically cancel all remaining federal student loan debt that borrowers took on to attend the school from January 1, 2005, through its closure in September 2016. ITT Tech shut down shortly after the government pulled the plug on its federal funding because it had failed to show it was in compliance with certain accreditation standards. At the time, the school was the subject of several state and federal probes over its recruitment tactics, lending practices and job placement figures. What to know about these 5 student loan forgiveness programs -- and how Biden has expanded them"It is time for student borrowers to stop shouldering the burden from ITT's years of lies and false promises," said Secretary of Education Miguel Cardona...
    President Joe Biden celebrated the July jobs report — which surpassed even White House expectations — in a briefing where he highlighted the decreased federal deficit, calling it a welcome departure from the economic policies of former President Donald Trump. On Friday, the Bureau of Labor Statistics released data from July’s job market showing a gain of 528,000 jobs during the month. Many were stunned by the report, as economists had predicted that the U.S. economy would only gain 250,000 jobs in the July survey. In the speech, Biden addressed the public from isolation, as he continues to test positive for Covid-19, while wearing his signature aviators. “Almost 10 million jobs since I took office,” remarked Biden, “That is the fastest job growth in history.” The president added that the U.S. “matched the lowest unemployment rate in America in the last 50 years,” at only 3.5%. Biden continued to celebrate his administration’s economic victory: Today there are more people working in America than before the pandemic began. In fact, there are more people working in America than at any point in American history. You know, what...
    The Biden administration appears to be gearing up for yet another extension of the student loans pause that began in March 2020 and may still elect to try to "cancel" up to $10,000 of debt per borrower via executive action. Student loan servicing contractors for the federal government are being told to hold off on sending out billing statements as the Aug. 31 deadline looms for when a loan payment freeze of more than two years is set to end, according to a report. WATCH: BILL MAHER CALLS STUDENT LOAN FORGIVENESS A 'LOSER ISSUE' FOR DEMOCRATS “The situation is that we’re almost 30 days away from the planned resumption, and the [Education Department] has been telling servicers to hold off on resumption communications for the last few months," Student Loan Servicing Alliance Executive Director Scott Buchanan told the Wall Street Journal. “Maybe the department expects that the White House will yet again kick the can down the road.” Former President Donald Trump initiated the ban as part of a wave of COVID-19-related policies and extended...
    Twenty/20 The Biden administration is considering wiping out hundreds of billions of dollars in student debt. Its announcement could come as soon as next month. Why would the federal government relieve a large portion of the loans it gave out? These are some of the main reasons, according to experts.1. A growing sense the system is brokenWith the cost of attending higher education ballooning and household wages sputtering over the last few decades, more families have had to turn to loans to cover their children's college bills. Average student loan balances at graduation have almost tripled since 1980, from around $12,000 to more than $30,000 today. The country's outstanding education debt balance now exceeds $1.7 trillion and poses a larger burden to households than credit card or auto debt.VIDEO5:4205:42Biden's student loan forgiveness plan is a 'horrible idea,' says Kevin O’LearySquawk BoxBorrowers complain that the lending system is riddled with problems. About 20% of federal student loan borrowers attended for-profit colleges, many of which have come under fire for misleading students and failing to provide them with a quality education. Half...
    New rules proposed by the Biden administration on Wednesday would make it easier for borrowers to get their federal student debt forgiven through several existing programs. The action is intended to overhaul relief programs that have been criticized for their burdensome paperwork requirements and long processing times. It builds on the administration’s efforts to expand targeted debt cancellation for certain borrowers while President Joe Biden considers broader student debt forgiveness. “We are committed to fixing a broken system,” Education Secretary Miguel Cardona said in a statement. “If a borrower qualifies for student loan relief, it shouldn’t take mountains of paperwork or a law degree to obtain it.” The proposal would reshape a debt forgiveness process for students whose colleges deceive them, along with other programs for borrowers who are disabled and those with careers in public service. It’s unlikely to open debt forgiveness to huge swaths of borrowers, but it’s meant to make it easier for those who already qualify. The Education Department plans to finalize the rules no later than July 1, 2023. Some of the most significant changes...
    The U.S. Department of Education in Washington, D.C.Caroline Brehman | CQ-Roll Call, Inc. | Getty Images The Biden administration announced on Wednesday that it was moving to make sweeping changes to the federal student loan system, including making it easier for public servants to get debt forgiveness and setting new limits on the accrual of interest. "We are committed to fixing a broken system," U.S. Secretary of Education Miguel Cardona said, in a statement. Key elements of the proposal include: Protections for defrauded borrowers: Under the proposed regulations, students who attended for-profit schools that lied or took advantage of them could be considered for debt cancellation as a group, meaning individuals wouldn't be burdened to make their case alone. Defrauded borrowers would also be given more leeway around when they could file a claim for loan cancellation, and the definition of misconduct by schools would be expanded to include aggressive and deceptive recruitment practices. Many colleges could also be prohibited from requiring borrowers to sign mandatory pre-dispute arbitration agreements or class action waivers. An overhaul of the public...
    VIDEO2:4202:42Expect the Philippines to implement tax reform program next year: Central bankSquawk Box Asia The Philippines' incoming finance minister wants to get his county back on a growth path and tackle pressing economic issues such as its huge debt pile. "As finance secretary I'll have a slightly different role," said Benjamin Diokno who is currently the central bank governor. "I'll be heading the economic team. What we really want to do is get back to our growth trajectory before the crisis," he told CNBC's "Squawk Box Asia" on Wednesday. "That's our plan to keep the growth momentum going because I think it'll solve a lot of our problems right now, which includes the ballooning deficit-to-GDP ratio and of course, the debt-to-GDP ratio," said Diokno, who is governor of Bangko Sentral ng Pilipinas. The Philippine government's national debt reached 12.76 trillion Philippine pesos (about $232.11 billion) at the end of April, data released by the Treasury showed. In February, the Department of Finance announced a fiscal consolidation plan for the next administration, which focused on the need to reduce the country's pandemic-induced debt.Benjamin...
    Washington (CNN)The Biden administration has approved the cancellation of federal student loan debt for another 45,000 public sector workers over the past few months, according to the Department of Education, on top of the 100,000 borrowers previously deemed eligible.These workers qualify for student loan debt cancellation due to the changes the Department of Education made to the Public Service Loan Forgiveness program in October. Since then, the administration has approved the cancellation of about $8.1 billion in federal student loan debt for close to 145,000 borrowers under the new waiver. Some of these borrowers have been approved for loan forgiveness but have yet to receive the relief.The number of borrowers who have been approved for debt relief so far is a fraction of the 550,000 borrowers the Department of Education originally estimated would be eligible for student loan forgiveness under the temporary expansion of the program. The Public Service Loan Forgiveness program promises to wipe away remaining federal student loan debt after an eligible government or nonprofit worker makes 10 years of monthly payments. The program was created about 15...
    (CNN) — The Biden administration has agreed to cancel an estimated $6 billion in federal student loan debt for about 200,000 borrowers who have claimed they were defrauded by their college. The administration had previously approved $25 billion in loan forgiveness for 1.3 million borrowers. Around 43 million Americans have federal student loan debt. READ MORE: Sacramento Mayor Steinberg Calls Supreme Court Ruling Striking Down Roe v. Wade ‘Dark Day For Our Country’Many of the borrowers affected by the new agreement have been waiting years for the Department of Education to process their claims under a rule known as borrower defense to repayment. It allows borrowers who believe they were misled by their college, often over inflated job placement rates or the ability to transfer credits, to request federal student loan relief. Seven of those borrowers filed a class action lawsuit in 2019 over the department’s handling of the claims. Under former Education Secretary Betsy DeVos, processing of the applications stalled. But the Biden administration has been chipping away at the backlog. The deal to wipe away the remaining federal student loan debt...
    The Biden administration has agreed to cancel $6 billion in student loans for about 200,000 former students who say they were defrauded by their colleges, according to a proposed settlement in a Trump-era lawsuit.The agreement filed Wednesday in San Francisco federal court would automatically cancel federal student debt for students who were enrolled at one of more than 150 colleges and later applied for debt cancellation because of alleged misconduct by the schools.Almost all the schools involved are for-profit colleges. The list includes DeVry University, the University of Phoenix and other chains still in operation, along with many that have folded in recent years, including ITT Technical Institute.Education Secretary Miguel Cardona said in a statement that the settlement would resolve the claims "in a manner that is fair and equitable for all parties."The deal has yet to be approved by a federal judge. A hearing on the proposal is scheduled for July 28.If approved, it would mark a major step in the Biden administration's efforts to clear a backlog of claims filed through the borrower defense program, which allows students...
    President Joe Biden and Education Secretary Miguel Cardona Another 200,000 student borrowers are on the brink of getting full relief after being defrauded by for-profit colleges. The Biden administration agreed to settle a long-running class action lawsuit seeking to get the Education Department to take action on “borrower defense” applications. If approved by a judge, the settlement will wipe another $6 billion in student loan debt—a huge amount of money that is nonetheless a tiny fragment of the more than $1.7 trillion of total student loan debt burdening around 45 million people. “If your school misled you or engaged in other misconduct in violation of certain state laws, you may be eligible for ‘borrower defense to loan repayment,’” according to StudentAid.gov, which means “the discharge of some or all of your federal student loan debt.” The lawsuit charged that the Trump administration—and then the Biden administration—delayed taking action on these applications for relief. Now, that action will finally come. RELATED STORY: Biden administration to forgive $5.8 billion in debt for students defrauded by Corinthian Colleges Campaign Action The lawsuit was brought by Harvard...