Main Topic: Federal appeals court halts a rule from President Biden's administration regarding student loan debt relief for borrowers who claim they were misled about the quality of education.
Key Points:
1. The rule broadens existing policy to end the debt of students who were misled by colleges and universities.
2. Career Colleges and Schools of Texas filed a lawsuit against the rule, arguing that it covers unintentional actions and gives excessive power to the Department of Education.
3. The 5th U.S. Circuit Court of Appeals granted an injunction and will hear arguments in November.
President Biden's student-debt relief plan, which aimed to wipe out up to $20,000 of borrowers' balances, has been struck down by the Supreme Court, prompting the administration to develop a new plan while payments are set to resume soon.
Republicans seeking the 2024 GOP presidential nomination, including former President Donald Trump, oppose President Joe Biden's plan to cancel student debt, with many arguing that it is unfair and burdensome to taxpayers while undermining personal responsibility.
Advocacy groups and elected officials are urging the Biden administration to implement student loan forgiveness, even after the Supreme Court struck down Biden's debt cancellation plan, and are pushing for the establishment of a new student loan forgiveness plan under the Higher Education Act.
Borrowers with federal student debt can use their remaining funds in a 529 college savings plan to pay off up to $10,000 of their debt, providing a potentially appealing option as student loan bills are set to resume in October.
House Republicans have advanced legislation to overturn President Joe Biden's new student loan repayment program, which lowers monthly payments and caps interest, while Biden officials promote it as a crucial tool to help Americans manage their federal student loan payments.
Millions of student loan borrowers in the US are facing the challenge of resuming their loan payments after a moratorium, with some borrowers unsure of the due dates and payment amounts. Many are expected to experience financial stress and may need to cut back on spending or explore repayment options such as income-driven plans. The new SAVE plan launched by the Biden administration aims to provide affordable payments, but not all borrowers will see a decrease in their monthly payments.
Hundreds of thousands of borrowers in the US are set to receive at least $6 billion in student loan forgiveness, but a major loan servicer is being accused of violating the terms of the agreement, adding to the ongoing issues faced by borrowers as student loan payments resume.
The Biden administration has approved over $22 billion in student loan forgiveness for borrowers who were defrauded by their schools, and they have announced another $37 million in relief for defrauded borrowers from the University of Phoenix.
The Biden administration is allowing a "grace period" for student loan borrowers to skip payments without defaulting, but interest will still accrue and borrowers may face financial consequences in the long term.
President Joe Biden announced a new round of federal student loan forgiveness, erasing $9 billion in debt for 125,000 borrowers and totaling $127 billion since he took office.
U.S. President Joe Biden plans to announce an additional $9 billion in student debt relief for 125,000 borrowers, bringing the total approved debt cancellation by the administration to $127 billion for nearly 3.6 million Americans.
The Biden administration has announced an additional $9 billion in student debt relief, providing fixes to income-driven repayment plans, public service loan forgiveness, and debt cancellation for borrowers with disabilities. This relief will benefit approximately 125,000 borrowers and is part of the administration's efforts to address obstacles and breakdowns in federal programs.
President Joe Biden has announced that an additional 125,000 Americans have been approved for $9 billion in student loan debt relief, bringing the total approved debt cancellation by the Biden administration to $127 billion for nearly 3.6 million Americans.
