Student Loans
Education Department Expands Student Loan Relief Programs
The Education Department finalized a flurry of new rules on Monday for its student loan programs, rolling back changes made during the Trump administration and making adjustments that will reduce the total sums owed by many borrowers. Education Secretary Miguel Cardona called the new rules “a monumental step forward in the Biden-Harris team’s efforts to […]
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Biden’s Student Loan Forgiveness Plan: Your Questions, Answered
President Biden announced on Wednesday that the federal government would cancel up to $20,000 worth of federal student loans for millions of people. But not everyone with debt will qualify. The action includes rules that will maintain the balances of debtors who currently have high incomes. Those who do qualify will need to navigate the […]
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Government to Cancel $6 Billion in Student Loans for Defrauded Borrowers
Around 200,000 former students who attended schools that they said had defrauded them will have $6 billion in federal loans canceled under a sweeping settlement announced on Wednesday, the latest move by the Biden administration to address the student loan crisis by eliminating some debts. Those who applied for relief — some as long as […]
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Inflation Complicates Biden’s Deliberations on Student Loan Forgiveness
WASHINGTON — The soaring cost of food, gasoline and other staples is further complicating a fraught debate among President Biden and his closest advisers over whether to follow through on his campaign pledge to cancel thousands of dollars of student loan debt for tens of millions of people. While Mr. Biden has signaled to Democratic […]
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What the Fed’s Rate Hike Means for Credit Cards and Student Loans
The Fed’s decision to raise its key interest rate by three-quarters of a percentage point is good news for savers, but less so for borrowers: They can expect to pay more on credit card debt, car loans and certain student loans. [Here’s what the Fed’s decision means for mortgages.] Credit Cards Credit card rates are […]
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White House Struggles to Talk About Inflation, the ‘Problem From Hell’
WASHINGTON — President Biden was at a private meeting discussing student debt forgiveness this year when, as happens uncomfortably often these days, the conversation came back to inflation. “He said with everything he does, Republicans are going to attack him and use the word ‘inflation,’” said Representative Tony Cárdenas, Democrat of California, referring to Mr. […]
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Student Loan Borrowers Got the Debt, but Not the Degree
“I had really good professors who were for the most part really understanding, but it was too much,” she said. “It was a tumultuous time.” Ms. Summers-Polite withdrew from her classes in spring 2012 with a medical note that prevented her from receiving failing grades, but the debt had already begun to accumulate. She said […]
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7 Million Bad Student Loans With No Way Out, for Anyone
There are hidden costs, even when the government is able to collect the money. One of the department’s most successful — and draconian — collection mechanisms is the Treasury Offset Program, which garnishes government payments. In 2019, the Treasury Department seized nearly $4.9 billion from tax refunds and other payments to go toward student loan […]
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Student Loan Borrowers Don’t Deserve ‘Forgiveness.’ They Deserve an Apology.
Still not convinced that the nation should ask debtors for absolution, and not the other way around? Consider the facts. First, there’s the Free Application for Federal Student Aid, or FAFSA, which for decades has yoked millions of students and families each year to its cumbersome form, confusing questions and confounding — and infuriating — […]
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