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Department of Education announced this week that its Office of Federal Student Aid (FSA) will resume collections on defaulted federal studentloans beginning Monday, May 5, 2025, ending a pause that has been in effect since March 2020. million borrowers owing more than $1.6
Originally established to exclude certain populations of students, legacy admissions provides a significant boost to children of ultrawealthy families who apply to elite institutions. million students — are parents of dependent children. I know these things because I was a child of student-parents.
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.
Department of Education has announced that collections on defaulted federal studentloans will resume on May 5, 2025, ending a pause that began in March 2020 due to the COVID-19 pandemic.
Nearly a third of borrowers whose federal studentloans entered repayment in October 2023, following the COVID-19 pandemic extended pause, are past due on the payments, according to a newly released report from the U.S. The above pie chart shows the number of federal studentloan borrowers in repayment by status, as of Jan.
These include the National Postsecondary Student Aid Study (NPSAS) and its longitudinal follow-up study of the outcomes of first-time college students, the Beginning Postsecondary Study (BPS). By analyzing these data, we gain a better understanding of how these factors vary across different student characteristics.
The burden of studentloan debt limits future finances of graduates of historically Black colleges and universities (HBCUs). CRL found that student debt prevented many HBCU graduates from building wealth through means such as buying a home or investing in retirement.
A new National Consumer Law Center (NCLC) report analyzes a Unified Servicing and Data Solution (USDS) contract, set to go live in the spring, and its potential impact on studentloan borrowers’ rights and experiences. Alpha Taylor The U.S.
Department of Education, teachers, students and union leaders are planning to rally Wednesday against recent actions by Elon Musk's Elon Musk Department of Government Efficiency (DOGE) that they say threaten both educational research and student privacy. In a mounting crisis at the U.S.
Having studentloans is associated with worse health outcomes and practices, according to a new study published in the Journal of American College Health. universities, looking to see whether there was a relationship between studentloan presence and the health of students.
New Mexico's Higher Education Department has announced that it is accepting applications for a program that will provide up to 100 percent studentloan forgiveness for New Mexico residents who graduated from one of the 23 out-of-state professional and graduate programs. Michelle Lujan Grisham has approved $2.2
Federal Student Aid has provided guidance on how borrowers who made federal studentloan payments in 2024 should report this information to the IRS for the upcoming tax year.
Student debt in the United States is a heavily racialized issue. Minoritized students borrow more money and have a harder time repaying it. More than half of Black students have student debt balances that exceed their net worth, and nearly half owe more money than they initially borrowed four years after their graduation.
Despite ongoing disinvestment, educators remain steadfast in their battlenot only for schools but also for students, families, and the conviction that education fuels a just society. Defunding these efforts has profound consequences: It widens the representation gap between Americas students and their teachers.
Tiffane Cochran The student debt report, " Student Debt, COVID-19 Relief, and Loan Forgiveness: Perspectives from Today’s Young Lawyers ," was conducted between April and May.
Federal studentloan borrowers have access to a new income-driven repayment plan, the SAVE plan. This gives the servicer time to get a borrower’s payment calculated […] The post Administrative Forbearance for StudentLoans appeared first on StudentLoan Planner.
PROTECT YOURSELF FROM SCAMS INVOLVING STUDENTLOAN DEBT RELIEF YOU ARE YOUR BEST PROTECTION AGAINST SCAMMERS DON’T pay anyone who contacts you with promises of debt relief or loan forgiveness. The post StudentLoan Debt Relief Do’s and Don’ts appeared first on ED.gov Blog. Continue Reading.
A proposed federal financial aid policy could change the lives of postsecondary students, particularly Black and Latinx students, by allowing them to spend less out-of-pocket for their degrees and prevent the accumulation of student debt, which remains financially crippling for many graduates.
Department of Education (ED) Office of Federal Student Aid. Richard Cordray “We are grateful for Rich Cordray’s three years of service, in which he accomplished more transformational changes to the student aid system than any of his predecessors,” said U.S. Secretary of Education Dr. Miguel A.
While such a move would require congressional approval, discussions have already begun about shifting its responsibilitiesincluding the management of federal student loansto other agencies. Federal StudentLoans Would. For financial aid professionals, understanding the potential implications of such a transition is crucial.
College students get Federal studentloan relief until May 2022. The current administration extended a studentloan moratorium that has allowed families to put off debt payments during the pandemic. Payments on Federal studentloans will be paused through May 1, 2022.
A key federal oversight agency is warning studentloan companies not to try to collect payments from borrowers who have had their studentloans discharged in bankruptcy.
A group of students at Spelman College are receiving a rare opportunity to start an investment journey through a new social impact initiative. The financial wellness initiative will offer a cohort of students a finance and investing course plus a seeded Stackwell account to begin building wealth during their college career.
Whether you are just starting your studentloan journey or have been dealing with studentloan debt for decades, you can use NCLC’s newly created StudentLoan Toolkit to help you take charge of your studentloan situation and move forward. Download the toolkit today!
Financial aid was necessary to paying for college for most students, according to a survey of more than 500 student scholarship recipients. Mike Nylund 521 students responded to the online survey, done by Scholarship America from Sep. 14 to Oct. And 72% said scholarships allow them to stay in college. Only 23% of U.S.
Tina Smith, D-Minn, and Chuck Grassley R-Iowa, have reintroduced three bills to help students and families make informed decisions about borrowing for college. Tina Smith The bills aim to make sure that students are informed and educated about college search and selection, loans, and financial aid.
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.
If this relatively small group of lawmakers doesn’t get what they want, and Congress is unable to reach a bipartisan agreement without […] The post Government Shutdown Could Imperil StudentLoan Forgiveness and Repayment Initiative appeared first on StudentLoan Planner.
Let’s be honest: in the summertime, no one wants to be reading up about interest rates or studentloan options. But as parents of college students, we also all know that time flies by quickly. Pushing off research on loan options may seem like the.
Borrowers Have More Time to Consolidate Loans to Benefit from the Adjustment By: Federal Student Aid Chief Operating Officer Richard Cordray Since this summer, the U.S. This is a one-time initiative Continue Reading The post Seven Things to Know About the StudentLoan Payment Count Adjustment appeared first on ED.gov Blog.
This year has been somewhat of a mixed bag for studentloan borrowers. On the one hand, President Biden’s signature mass studentloan forgiveness plan – which would have erased up to $20,000 in federal studentloan debt for millions – was struck down last summer by the Supreme Court.
When your home gets damaged or destroyed, or you’re without running water or electricity, the last thing on your mind is student… The post Hurricane Relief: StudentLoan Help After a Natural Disaster appeared first on StudentLoan Planner.
More than 40 million borrowers are simultaneously returning to repayment this month following the historic end of the studentloan pause in August. As borrowers begin to report problems, a federal watchdog agency is warning loan servicers that it is monitoring studentloan companies for unfair, deceptive, or illegal conduct.
The first month of repayment following the end of the studentloan pause has been a bit of a mess. Hundreds of thousands of borrowers have had their studentloan payments miscalculated by their loan servicers, according to reports from The Washington Post and The New York Times.
Only over a tenth of students receiving Title IV aid (13%) who start at community colleges ultimately earn bachelor’s degrees within eight years, according to a U.S. Department of Education (ED) report. Both two- and four-year institutions play a key role in determining this overall state transfer performance,” the authors wrote.
Multiple efforts are underway to repeal President Biden’s signature studentloan forgiveness initiative. Biden’s one-time student debt relief plan, if allowed to proceed, would provide $10,000 in federal loan forgiveness, or up to $20,000 if the borrower received a Pell Grant.
The FUTURE Act made it possible for a borrower to share their income automatically with their studentloan servicer for the purposes of recertifying their income driven repayment (IDR). However, this requires an individual’s consent.
As 40 million studentloan borrowers return to repayment this month following the three-year Covid forbearance, one group of borrowers is facing particularly dire circumstances: parent borrowers. Parent PLUS loans are federal loans issued to parents for the benefit of a child’s undergraduate education.
By: Richard Cordray, Chief Operating Office, Federal Student Aid, U.S. Department of Education This spring, Federal Student Aid (FSA) will begin improving how individual borrowers manage and repay their federal studentloans.
29, the new federal spending plan is set to increase the Pell Grant in 2023, allowing low-income students a chance to access up to $7,395 each year. According to the Department of Education, about six million students received Pell Grant funding in the 2020 – 2021 academic year. The total studentloan debt reached $1.75
The deadline to apply to consolidate many older federal studentloans to be included in the one-time payment count adjustment is Tuesday, April 30th. Do I need to consolidate my loans to get additional credit toward debt relief? I have loans I need to consolidate – what do I do next?
In addition to raising the debt ceiling, the bill includes… More » End of StudentLoan Payment Pause Imminent The post End of StudentLoan Payment Pause Imminent first appeared on College Aid Services. The bill received a vote of 314-117, with support from both Democrats and Republicans.
Update about federal studentloan servicing The U.S. Department of Education, including its office of Federal Student Aid (FSA), is constantly working to improve the studentloan borrower experience.
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