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Chaos and Confusion: The State of Student Loans

Diverse: Issues in Higher Education

Chaos: the word experts chose time and again to describe the current state of student debt relief efforts and loan repayment. Since President Biden’s first attempt to clean the slate for millions of student borrowers was struck down by the U.S. The debt burden is not distributed equally among students.

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Administrative Forbearance for Student Loans

Student Loan Planner

Federal student loan borrowers have access to a new income-driven repayment plan, the SAVE plan. Instead of billing borrowers an incorrect amount, servicers tend to use an administrative forbearance instead. Unfortunately, servicers have had enormous problems calculating what payments should be under that plan.

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Federal Student Aid Reaches Settlement on Student Aid Eligibility Violations

Diverse: Issues in Higher Education

It relates to violations of the “ability-to-benefit” test regulations that govern eligibility to receive federal student aid for students without a high school diploma or GED equivalent. A 2023 ED investigation found that Florida Career College routinely broke the rules governing how schools can administer ATB tests.

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Student Loans Relief Until May 2022

College Aid Consulting Services

College students get Federal student loan relief until May 2022. The current administration extended a student loan moratorium that has allowed families to put off debt payments during the pandemic. Payments on Federal student loans will be paused through May 1, 2022.

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TICAS Policy Agenda Tackles the Flaws in the Higher Ed System

Diverse: Issues in Higher Education

The Institute for College Access and Success (TICAS) has released its latest policy recommendations to make postsecondary education affordable and completable for all students. “It Can students get childcare, or food? Because you can’t have student success without those things.” Can they have healthcare?

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Community College of Vermont and Hospital Pay Students to Take Classes

Diverse: Issues in Higher Education

Facing a national shortage of early childhood educators , the Community College of Vermont (CCV) and the Southwestern Vermont Medical Center (SVMC) have teamed up for an innovative solution: paying students to reduce their hours at their jobs in favor of taking more classes. CCV and SVMC anticipate funding 8-10 applicants.

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For Some Borrowers, the Student Loan Payment Pause Will Last Until At Least 2025

Student Loan Planner

The payment pause was extended numerous times under two presidential administrations.