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.
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
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.
US charges 6 Hamas leaders with terrorism over Oct. 7 attack
The U.S. Department of Justice has announced terrorism charges against senior leaders of Hamas. And with the kickoff to a new NFL season a day away, betting on the games is expected to break records. These stories and more highlight The Morning Rundown for Wednesday, Sept. 4, 2024.
US charges 6 Hamas leaders with terrorism over Oct. 7 attack
The Department of Justice has announced charges against six senior Hamas officials for killing at least 43 Americans since the terrorist attack on Oct. 7, 2023, in Israel. Nearly a year later, there are mass protests taking place in the streets of Israel after six more bodies of hostages were recovered.
U.S. Attorney General Merrick Garland said the federal charges unsealed Tuesday, Sept. 3, won’t be the last efforts by the DOJ to hold Hamas accountable for its heinous crimes.
Justice Department Announces Terrorism Charges Against Senior Leaders of Hamas pic.twitter.com/z8gS2lUGvV
“On Oct. 7, Hamas terrorists murdered nearly 1,200 people, including over 40 Americans, and kidnapped hundreds of civilians,” Garland said. “They perpetrated the deadliest massacre of Jews since the Holocaust. The charges unsealed today are just one part of our effort to target every aspect of Hamas’ operations. These actions will not be our last.”
The recovery of the bodies of Goldberg-Polin and five other hostages in Gaza sparked a massive round of protests in Israel. Thousands of people are calling for more action to be taken to see the release of the remaining hostages.
The charges filed against six Hamas leaders include conspiracy to provide material support to a terrorist organization, conspiracy to murder U.S. Nationals, and conspiracy to use weapons of mass destruction.
However, of the six Hamas officials charged, three of them are already dead. The other three have not yet been captured.
Zelenskyy: Ukraine to hold onto Russian territories ‘indefinitely’
Ukrainian President Volodymyr Zelenskyy says Kyiv will be holding on to the Russian territories it seized last month indefinitely as its war with Russia stretches on. It’s part of a plan to force Russian President Vladimir Putin to the negotiating table.
Almost a month ago, Ukrainian troops took over Russia’s Kursk region in an unexpected operation. Ukraine now claims it controls nearly 500 square miles of Russian territory and has taken hundreds of Russian prisoners of war.
In an interview with NBC News, Zelenskyy would not discuss whether Ukraine planned to try to seize more Russian territory.
The interview aired hours before Ukraine’s foreign minister resigned Wednesday, Sept. 4, as a Ukraine parliament deputy warned it would be the “day of resignations,” with more than half of Zelenskyy’s cabinet members expected to be replaced.
Harris to announce economic plans, Trump to hold town hall
There are now less than nine weeks until Election Day and both presidential candidates will be on the road today.
The Democratic nominee, Vice President Kamala Harris, is set to give a speech in New Hampshire, unveiling plans for new benefits for entrepreneurs and small businesses. Those plans are set to include a tax deduction of up to $50,000 for starting a small business; ten times the $5,000 amount currently granted to small businesses in their first year.
She is also set to announce a goal of 25 million small business applications during her first term if she’s elected president. That would surpass the 19 million new small businesses under the Biden administration.
Meanwhile, Republican presidential nominee former President Donald Trump will be holding a town hall in the battleground state of Pennsylvania.
He’ll take questions during the event at the Farm Show Complex in Harrisburg hosted by Fox News’ Sean Hannity. The town hall will air Wednesday night on the network.
Both vice presidential candidates are also holding events Wednesday. Democratic Minnesota Gov. Tim Walz is set to be in Pennsylvania and Republican Ohio Sen. JD Vance in Arizona.
Federal judge won’t intervene in Trump’s New York criminal case
A federal judge has rejected former President Trump’s request to intervene in his New York criminal case. Trump’s lawyers were hoping to move the case to federal court so they could try to have his conviction overturned in the wake of the Supreme Court’s presidential immunity ruling.
The lawsuit brought by six Republican states and led by Missouri Attorney General Andrew Bailey alleges they have documents proving the Biden administration plans to begin canceling loans this week, even though a cancellation plan technically does not exist yet.
Usually, states cannot file to block federal regulation until it’s officially in place, but in this case, the states say they have proof the secretary of education is implementing the plan without one officially being in place.
The lawsuit claims the administration has been planning this move since May. The Education Department has not commented on the pending litigation.
$35 billion expected to be bet on NFL this season
The NFL’s 2024 season kicks off Thursday, Sept. 5, and the American Gaming Association predicts Americans are about to dish out the big bucks betting on games. They say $35 billion will be placed in legal wagers this season.
If the association is right, that would be a roughly 30% increase from the amount bet on the NFL in the 2023 season.
Last season there was nearly $27 billion spent on legally betting on NFL games. Since then, even more states have passed laws to allow for legal betting markets, including North Carolina, Maine, and Vermont.
Betting is now legal in 38 states and Washington D.C.
The American Gaming Association said more bets are placed and more money is wagered on the NFL than any other league.
Supreme Court won’t revive Biden’s student loan debt forgiveness plan
The U.S. Supreme Court dealt a significant setback to the Biden administration’s efforts to provide student debt relief, declining on Wednesday, Aug. 28, to reinstate the SAVE Plan, a key part of the administration’s broader strategy to ease the financial burden on millions of Americans. This decision leaves borrowers in limbo as legal challenges from GOP-led states continue to play out in the courts.
The SAVE Plan, rolled out in July 2023, is an income-driven repayment program that lowers monthly payments and offers earlier loan forgiveness for borrowers with smaller balances. Under the plan, borrowers with loans of $12,000 or less could see their debt wiped away after 10 years of payments, a reduction from the previous 20 to 25 years.
The plan also adjusts the percentage of discretionary income that borrowers must pay from 10% to 5%, with discretionary income redefined to exclude those earning less than 225% of the federal poverty line.
The Supreme Court’s decision to leave an injunction from the U.S. Court of Appeals for the 8th Circuit in place means that the program remains blocked for now. The Education Department had already paused loan payments for those enrolled in the SAVE Plan due to the ongoing legal battles.
This legal struggle follows the Supreme Court’s rejection last year of a more ambitious plan by the Biden administration that aimed to cancel over $400 billion in student loans, affecting more than 40 million Americans. The new SAVE Plan, though less sweeping, still faces fierce opposition, with critics arguing that it effectively forgives loans without proper congressional authorization.
The estimated cost of the SAVE Plan has been a major point of contention. While the Biden administration estimates the plan will cost nearly $156 billion over a decade, critics argue that the true cost could be as high as $475 billion.