President Biden forgives more student loan debt, bringing total to $183 billion
More relief is on the way for some borrowers with large amounts of student loan debt. President Biden announced Monday, Jan. 13, that his administration is forgiving such debt for another 150,000 people.
The White House said the debt forgiveness will go to 85,000 people who attended schools that “cheated and defrauded their students,” 61,000 others who have a permanent disability and about 6,000 people who are now public service employees.
Public employees will see $465 million in debt erased, while people with disabilities will have $2.5 billion forgiven. Students, with debt that the administration believes came from schools that acted fraudulently, will see $1.25 billion in debt removed.
The latest move brings a total of $183 billion in debt relief to roughly 5 million federal student loan borrowers during Biden’s time in office. The White House press secretary called it life-changing relief for families and said it allows them to spend money on other priorities, such as housing.
In 2023, the U.S Supreme Court blocked the president’s broader plan to deliver wide-scale student loan forgiveness to tens of millions of borrowers. Instead, the administration has gone through the Department of Education in maximizing existing debt relief programs.
Credit card defaults jump to highest level since 2010: Report
According to the credit rating agency TransUnion, the average American has about $6,300 in credit card debt. Now, a report shows that credit card defaults are rising as family budgets can’t keep up with expenses and the cost of living.
According to the Financial Times, during the first nine months of 2024, lenders were forced to write off $46 billion in delinquent credit card balances. Officials said that’s a 50% jump from 2023 and the highest rate since 2010.
Making matters worse, Moody’s Analytics reports that people who earn at the bottom third of the income ladder are tapped out and now have zero savings.
The New York Federal Reserve released figures showing that credit card debt in September reached $1.17 trillion, the highest level in Fed data-keeping. Household debt, including mortgages, car loans and student loans reached close to $18 trillion, another record. Analysts say some of that is due to inflation and higher interest rates.
As January rolls in, so do the holiday spending bills. Lending Tree says more than one-third of Americans took on additional debt this holiday season, racking up an average of $1,181 in credit card spending.
Biden cancels $4.28 Billion in student debt for public service workers
The Biden administration has announced $4.28 billion in student loan forgiveness for 55,000 public service workers. This latest round of cancellations brings the total amount of debt relief approved by President Joe Biden to nearly $180 billion for approximately 4.9 million borrowers.
The program forgives federal student loans for government and nonprofit workers. However, they’d only qualify after 10 years of making qualifying payments.
Historically, people have criticized the program for its complexity. The Biden administration overhauled the program in 2021 to simplify the process.
The administration highlighted the program’s impact, stating it has allowed borrowers to pursue financial and life plans previously delayed by student loan debt.
Many borrowers were approved but are still waiting for forgiveness. Many have expressed concerns about how the upcoming administration will handle the program.
During his first term, President-elect Donald Trump’s administration delayed forgiveness for students defrauded by for-profit colleges.
Federal courts have blocked many of Biden’s efforts for broader student loan relief. That includes a plan to forgive debt for more than 25 million borrowers.
Federal judges also halted the Biden administration’s SAVE repayment program before it could be fully implemented.
Student borrowers may face default as loan forgiveness remains tied up in court
For millions of student loan borrowers hoping for relief from Washington, things might get more complicated in the months ahead. The Biden administration’s one-year grace period from the Covid-era delay on repayments has expired.
Banks could begin to hit debtors who haven’t begun paying back their student loans with a collection action. Financial experts say it generally takes between nine and 12 months for somebody to face the consequences of defaulting.
People who default on their student loans could face garnishment of their wages, loss of eligibility to get a mortgage and credit rating difficulties.
A federal judge recently blocked President Joe Biden’s second attempt at mass debt cancellation. The U.S. Supreme Court rejected his first attempt in 2023.
The Biden administration also tried to offer new loan repayment plans. However, those have also been tied up in the courts.
Experts said those in deep student loan debt at the federal or state level can try to file an Economic Hardship Deferment. Debtors would need to file a form and answer questions about their ability to repay and work situation. However, only those with loans like Perkins or Federal Family education loans can apply.
Somebody out of work can file a similar form called an Unemployment Deferment Request.
Another option would be to file for student loan forbearance. In this case, the loan provider decides whether to grant the person in debt a chance to make no payment or a smaller payment for a period up to one year, before the case is reviewed again.
Borrowers should receive multiple notices before they go into default or delinquency.
Looking ahead, President-elect Donald Trump said on the campaign trail he would try to roll back the Biden administration’s effort to forgive student loan debt, calling it illegal.
Harris, Trump look for votes in battlegrounds with 2 weeks to go
With exactly two weeks to go until Election Day, both candidates for president are blitzing the battleground states. And we’ve learned how long student loan repayments for about eight million Americans will remain on hold. These stories and more highlight your Unbiased Updates for Tuesday, Oct. 22, 2024.
Harris, Trump look for more votes in battlegrounds with 2 weeks to go
With two weeks to go until Election Day, the presidential candidates are crisscrossing the country trying to pick up any undecided voters that remain.
.@Liz_Cheney: Vice President Harris is going to defend our Constitution. We're not always gonna agree, but I know Vice President Harris will always do what she believes is right for this country. She has a sincere heart, and that's why I'm honored to support her pic.twitter.com/lcFD6MGDSF
“So, I think that we are facing a choice in this election; it’s not about party, it’s about right and wrong,” Cheney said. “And I certainly have many Republicans who will say to me, ‘I can’t be public.’ They do worry about a whole range of things including violence, but they’ll do the right thing.”
In Wisconsin, Harris described her opponent former President Donald Trump as “unstable,” referencing comments made by former Trump cabinet members.
“I think it’s very important that we acknowledge — and I have said publicly that Donald Trump is an unserious man,” Harris said, “and the consequences of him ever being President of United States again are brutally serious. Brutally serious.”
Former President Trump visited North Carolina on Monday where he surveyed the damage created by Hurricane Helene and continued his criticism of the Biden administration’s relief efforts.
“The power of nature, nothing you can do about it, but you got to get a little bit better crew and to do a better job than has been done by the White House,” Trump said. “It’s been not good. Not good. I’m here today in western North Carolina to express a simple message to the incredible people of the state: I’m with you and the American people are with you all the way. We’re going to continue to be with you. We’ll see what happens with the election. And we’re, on January 20th, you’re going to have, I think, a new crew coming in to do it properly and help you in a proper manner.”
Trump made two more stops while in North Carolina Monday, holding a rally and speaking at a faith leaders’ event.
On Tuesday, Oct. 22, former President Trump will continue campaigning in North Carolina with a rally in Greensboro, and Vice President Harris will sit down for an interview with NBC News in Washington, D.C.
Blinken in Israel to revive Gaza cease-fire talks after Sinwar death
U.S. Secretary of State Antony Blinken is in Israel once again — his 11th visit to the region since war broke out between Israel and Hamas a little more than a year ago.
On my way to Israel and other stops in the Middle East for intensive discussions about the importance of ending the war in Gaza, returning the hostages to their families, and alleviating the suffering of the Palestinian people. pic.twitter.com/lIaRUo7Ea2
This visit is the first stop on a wider tour of the Middle East in which Blinken is expected to revive talks for a cease-fire in Gaza in the wake of the death of Hamas leader Yahya Sinwar.
Blinken’s weeklong trip comes as the Middle East braces for Israel’s response to an Iranian missile attack on Tel Aviv earlier this month.
Teen arrested after 2 adults, 3 children killed in shooting at Washington home
Officials with the King County Sheriff’s Office said another teenager who had been injured went to a Seattle hospital. They said that teenager and the teen in custody both live at the home where the shooting happened, but did not know the relationships between those teens and the five people killed.
“I just don’t know the relationships, so I’m going to withhold confirming any relationships, but it does appear to be that this is a family incident,” Deputy Mike Mellis told reporters Monday. “Clearly, a domestic violence incident that involves not only a young man — who’s now in significant trouble — and it involves firearms. Young men and firearms.”
Reports say he has chronic myeloid leukemia, a form of bone marrow cancer, and he’s undergoing treatment at Rikers Island prison in New York where he’s serving a 16-year sentence.
This is just the latest health issue Weinstein has faced behind bars. Last month, he had emergency heart surgery to alleviate a significant amount of fluid in his lungs and heart, and he was hospitalized in July with COVID-19 and double pneumonia.
Student loan payments pause extended for 8 million SAVE plan borrowers
Eight million Americans will be able to continue holding off paying back their student loans for at least another six months, the Department of Education confirmed on Monday.
The Education Department said save enrollees will be placed in an interest-free general forbearance for at least six months pending the outcome of legal challenges to the plan.
Cheapest World Series tickets costing at least $1,000 on secondary market
The Los Angeles Dodgers and New York Yankees have each punched their ticket to the World Series and now if you want a ticket, you’ll need at least $1,000. According to SeatGeek, the cheapest single seat for the Game 1 in LA on Friday, Oct. 25, will cost $1,034.
For Game 2 on Saturday, Oct. 26, also at Dodger Stadium, the least expensive ticket is $1,209.
Games 3 and 4 on Monday and Tuesday, Oct. 28 and 29, head back to the East Coast, with the cheapest tickets for Yankees Stadium costing $1,385 and $1,110, respectively. A possible Game 5 is showing the same as Game 4.
And “if necessary,” Games 6 and 7 would be back in LA, with the cheapest tickets going for around $1,300 or more.
As for the good seats behind home plate at Dodger Stadium, those tickets are going for $1,500 or more.
Biden student loan forgiveness plan gets a win in federal court
President Biden’s student loan forgiveness plan can move forward after a federal judge allowed a temporary restraining order to expire. This, however, does not mean the Biden administration won the case, which will continue working its way through the federal court system.
The lawsuit was filed by seven Republican states: Alabama, Arkansas, Florida, Georgia, Missouri, North Dakota and Ohio. They argued Biden’s new plan to forgive student debt is illegal.
On Wednesday, Oct. 2, a federal judge removed Georgia from the case and moved it to Missouri. According to Reuters, the judge determined Georgia lacked legal standing to sue. The state said it could potentially lose tax revenue but the judge said that would be incidental.
The judge ruled Missouri does have standing to sue because it operates a nonprofit student loan servicer, called MOHELA, which could potentially lose millions of dollars if the Biden plan is ultimately approved.
“The fact remains that this lawsuit reflects an ongoing effort by Republican elected officials who want to prevent millions of their own constituents from getting breathing room on their student loans,” a Department of Education spokesperson told NBC News.
This loan forgiveness was announced after the Supreme Court struck down Biden’s original plan to forgive approximately $400 billion in loans for as many as 43 million Americans back in June 2023.
It would also provide debt cancellation for undergraduate borrowers who entered repayment before July 2005 or graduate borrowers who entered repayment before July 2000.
There are multiple other ways to get relief under the plan. The Department of Education is still working to finalize who will qualify.
DOE extends application deadline for defaulted student loan borrowers
The Department of Education (DOE) extended its deadline for the Fresh Start program for defaulted student loan borrowers until the morning of Wednesday, Oct. 2. The deadline was supposed to be Monday, Sept. 30, but the department pushed it back because of an issue on one of its websites.
The Fresh Start program is open to only a limited number of student loan borrowers. It will put them back in good standing on their loans, avoiding the impacts of delinquency and default, like taking a hit on their credit report, wage garnishment and the potential for having their Social Security benefits withheld in the future.
The Education Department said as of 2022, there were about 7.5 million federal student loan borrowers in default.
⚠ Borrowers in default: The deadline to sign up for Fresh Start benefits has been extended. Borrowers should enroll by 2:59 a.m. Eastern time on Wednesday, Oct. 2. Apply online, on the phone, or by mail: https://t.co/jbS9cxGBHX If you experience issues signing up online or by… pic.twitter.com/xlsQJv5Ngs
Pew study unveils rising student debt straining young Americans
Americans are grappling with approximately $1.6 trillion in student loan debt as of June 2024, a significant 42% increase from a decade ago. This rise coincides with more young adults attending college and an escalation in higher education costs.
This figure declines with age — 14% among those aged 40 to 49, and only 4% among those 50 and older. Student loans are predominantly held by those with at least a four-year college degree.
The survey highlights disparities in debt levels based on education level. For instance, individuals who attended some college but did not earn a bachelor’s degree have median debts ranging from $10,000 to $14,999. Those with postgraduate degrees typically owe between $40,000 and $49,999.
The financial strain is particularly evident among younger borrowers, especially those aged 25 to 39 with student loans, who report greater financial hardship compared to their peers without debt.
Despite earning higher household incomes facilitated by higher education, about 35% of these indebted college graduates believe the financial costs of their education were not worth the benefits, compared to 16% of those without loans.
Americans lose confidence college is worth it, skilled trades on the rise
As more Americans lose confidence that a college degree is actually worth it, a new study points to some potentially good news for the post-secondary schools. The number of high school graduates who chose to enroll in college held steady from 2022 to 2023, and both years were a big improvement over enrollment numbers during the COVID-19 pandemic in 2020 and 2021.
Still, four years after the pandemic began, there are 900,000 fewer undergraduate students enrolling in college. College costs continue to rise and not wanting to accrue student loan debt has many high schoolers looking at other plans for after they graduate.
A separate recent study found nearly half (49%) of high schoolers believe a high school diploma, trade program, two-year degree or other type of enrichment program is the highest level of education needed for their anticipated career path. And even those planning on going to college believe on-the-job training and experience is more beneficial than getting a higher education degree, with 56% of them saying so.
A third study found a majority of those with student loan debt said their degree wasn’t worth it. While more than half (53%) said knowing they’d have to take on debt has stopped them from pursuing more education.
The Department of Labor says in the decade from 2012 to 2121, the number of registered apprentices jumped 64%. Just between 2022 and 2023 enrollment in vocational programs spiked 16%.
The Department of Education also found those who go to trade schools are more likely to find a job after going to school than those who take the traditional college route and are more likely to actually work in their field of study.
It’s also worth noting more and more Americans think two-year post-secondary schools are a better bang for your buck. In a recent Gallup survey, more than half (55%) said a degree from a two-year school is worth it while 18% believed the same thing about four-year colleges.
Navient banned from student loans, ordered to pay $120 million in settlement
In a settlement, Navient is permanently banned from servicing federal student loans and must pay $120 million in penalties and borrower relief. The Consumer Financial Protection Bureau (CFPB) accused Navient of steering struggling borrowers into costly forbearance options instead of income-driven repayment plans, mishandling payment processing, and harming the credit of disabled borrowers.
Navient allegedly enrolled 1.5 million borrowers in multiple consecutive forbearances, resulting in $4 billion in additional interest charges.
In a statement, Navient says it does not agree with the CFPB’s allegations. However, the company states, “This agreement puts these decade-old issues behind us.”
Under the settlement, Navient is banned from serving federal student loans. Navient will also pay a $20 million penalty and provide $100 million in relief to affected borrowers.
The CFPB said it will mail checks to eligible borrowers, and affected consumers will not need to do anything to obtain redress.