Loan payment – Leading DIR http://leadingdir.com/ Thu, 22 Sep 2022 05:49:44 +0000 en-US hourly 1 https://wordpress.org/?v=5.9.3 https://leadingdir.com/wp-content/uploads/2021/10/icon-8-120x120.png Loan payment – Leading DIR http://leadingdir.com/ 32 32 How to avoid student loan payment scams https://leadingdir.com/how-to-avoid-student-loan-payment-scams/ Thu, 15 Sep 2022 08:04:33 +0000 https://leadingdir.com/how-to-avoid-student-loan-payment-scams/ Hello everyone, today we are going to review hhow to avoid student loan payment scams. For a fee, some companies guarantee their help in reducing student loan debt. However, nothing they can do for you is more free than what you can do for yourself. Also, some companies that offer to reduce student loan debt […]]]>

Hello everyone, today we are going to review hhow to avoid student loan payment scams. For a fee, some companies guarantee their help in reducing student loan debt. However, nothing they can do for you is more free than what you can do for yourself. Also, some companies that offer to reduce student loan debt are frauds. Companies are not allowed to charge you before helping you. Here are some additional tips on how to stay away from these scams. So let’s get started without further ado.

Sometimes it looks like student loans are a scam. Following allegations that it created predatory student loans, Navient, a leading student loan provider, has agreed to a $1.85 billion settlement with 38 states and the District of Columbia in January 2022. The Consumer Financial Protection Bureau, numerous states and lawsuits have been filed. against him (CFPB). More than 66,000 borrowers nationwide owe $1.7 billion in subprime private student loans that the company will forgive.

How to avoid student loan payment scams

  • Beware of quick loan cancellation promises. This is a common tactic of scammers who target the people who need debt relief the most and most often want a quick result.
  • Is the person contacting you posing as a government official? Scammers can fake a government seal and sometimes even a government email address. You are unlikely to be contacted directly by a government official with the promise of fast debt relief, so if you have federal loans, you should go directly to StudentAid.gov.
  • Be careful who wants money upfront. Neither the FTC nor any other government agency will ask you for money before helping you with student debt relief.
  • Do not give out your Federal Student Aid (FSA) ID card. Since the FSA ID is considered a legal signature by the US Department of Education for use in all of its online systems, no one but you – not even your parents, loan representative, or officials school – should only have access to this number. If anyone asks, report it to the FTC by calling 1-877-FTC-HELP (382-4357).

How to spot a student loan scam

As with all scams, it is best to be vigilant to avoid negative consequences. Student loan scams are the same because there are some telltale signs that will let you know you’re not dealing with someone who can tolerate your student loans. First, pay attention to advertising language in emails, messages, and phone calls. There are a few key phrases that FederalStudentAid says should be an immediate red flag:

  • “Take immediate action to qualify for student loan forgiveness before the program ends.”
  • “Your student loans may qualify for full discharge.” Registrations arrive first and are served first.
  • “Notice to students: your student loan is flagged for forgiveness pending verification. Call now!”

Although genuine student loan forgiveness plans are available to borrowers, they are not handed out like a radio lottery. In general, if it sounds too good to be true, it’s probably a scam.

Last words

We hope you enjoyed our article on How to Avoid Student Loan Payment Scams. Remember that all government programs that provide student debt relief through the Department of Education or the FTC are always offered free of charge, and no third-party companies distribute debt relief funds online. partnership with them for the time being. If you are contacted by people claiming to be from your private lending institution, collect their name and phone number, then hang up and call your lending institution directly to verify the authenticity of the call. If you liked our article, share it with others.

Hope you understand this article, How to avoid student loan payment scams.

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Student loan repayments will be automatic for many https://leadingdir.com/student-loan-repayments-will-be-automatic-for-many/ Wed, 14 Sep 2022 10:30:00 +0000 https://leadingdir.com/student-loan-repayments-will-be-automatic-for-many/ Hundreds of thousands of borrowers made payments on federal student loans after forbearance began on March 13, 2020, hoping to pay off their debt sooner. But now that the White House has announced its intention to forgive up to $20,000 in student loan debtsome of these borrowers may be wondering how to get a refund. […]]]>

Hundreds of thousands of borrowers made payments on federal student loans after forbearance began on March 13, 2020, hoping to pay off their debt sooner. But now that the White House has announced its intention to forgive up to $20,000 in student loan debtsome of these borrowers may be wondering how to get a refund.

Some may have paid their loan balance below the cancellation amount to which they are entitled, for example, and wish to maximize the amount discharged.

On September 13, the Ministry of Education said that a refund of the overpayment would be automatic for anyone who has repaid their debt below the cancellation amount to which they are entitled. That is, if you qualify for a $10,000 cancellation but pay the $8,000 balance during the pandemic, your $8,000 balance will be discharged and the remaining $2,000 will be refunded.

Of course, you must first successfully apply for debt cancellation. While this process is automatic for many borrowers, others have to wait until an online application opens in October.

Other borrowers, who have a remaining balance even after the $10,000 or $20,000 debt is forgiven, can still receive refunds on voluntary payments made after March 13, 2020, by contacting their servicing agent. It is important to note that these repaid installments will increase your loan balance and your monthly payments. If you expect to have a balance after the waiver is applied and wish to request a refund, you can do so by contacting your repairer until December 31, 2023.

Here’s what you need to know if you might have a remaining balance but still want to request a refund.

Who can request a refund?

More than 40 million borrowers have been allowed to suspend payments, interest-free, during the pandemic. According to the White House, up to 27 million people could be eligible for debt cancellation. The maximum amount discharged is $10,000 per borrower, $20,000 if you have received a Pell Grant at some point in the past.

Those who have made payments or repaid their federally held loans during the interest-free forbearance — by one-time or lump sum payment — are eligible for refunds. Any payment made since March 13, 2020 is eligible. Reimbursement requests can only be made by you and reimbursed to you, even if someone else has made a payment on your loan.

If you consolidated your loans after March 13, 2020, payments you made before consolidation are not eligible for a refund.

Private student loan repayments are not included. Payments are also not made on some FFELP or Perkins loans.

How do I request a refund?

Getting started with getting a refund on payments is relatively simple if you have the right information at hand. You need:

  • Your loan servicer’s phone number.

  • Your social security number.

  • Payment confirmation numbers or bank payment information.

  • The address you would like your refund delivered to.

You can probably find the payment confirmation numbers on your loan service account portal under your payment history. Each payment has a unique identification number that will allow the repair representative to apply your refund accurately. You can find your bank transaction dates or check numbers on your bank account portal.

The first step is to call your loan officer. Your loan service representative might ask for your social security number to open your account. After verifying your account and identity, let them know that you want to request a refund on payments made during the interest-free forbearance period.

Expect long wait times, says Scott Buchanan, executive director of the Student Loan Servicing Alliance.

The representative will ask you which payments, in particular, you want to refund. To make this happen quickly and smoothly, be prepared to provide them with applicable payment confirmation numbers or transaction numbers.

You will also need to confirm your address on file: refunds can be made by check or electronically.

Then the representative will submit the request on your behalf and provide you with a confirmation.

When will I get my money back?

If you do not receive your refund electronically, you will receive a check in six to 12 weeks. You will also see your loan balance increase by the amount repaid during this period.

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GSIS Expands Loan Repayment Solutions – Manila Bulletin https://leadingdir.com/gsis-expands-loan-repayment-solutions-manila-bulletin/ Thu, 08 Sep 2022 04:05:00 +0000 https://leadingdir.com/gsis-expands-loan-repayment-solutions-manila-bulletin/ The state-owned Government Service Insurance System (GSIS) has partnered with Mr. Lhuillier to expand pension fund loan repayment solutions. In a statement released Thursday, September 8, the civil servants pension fund said a memorandum of understanding had been signed by GSIS President and CEO Wick Veloso and Mr. Lhuillier, Michael Lhuillier, last Tuesday. Mr. Lhuillier […]]]>

The state-owned Government Service Insurance System (GSIS) has partnered with Mr. Lhuillier to expand pension fund loan repayment solutions.

In a statement released Thursday, September 8, the civil servants pension fund said a memorandum of understanding had been signed by GSIS President and CEO Wick Veloso and Mr. Lhuillier, Michael Lhuillier, last Tuesday.

Mr. Lhuillier is one of the largest non-banking financial services networks in a country with 2,576 branches located in cities, towns and remote barangays across the country.

“We welcome this partnership with Mr. Lhuillier, especially his strategic presence in the South, as 40% of our members and retirees are in the Visayas and Mindanao,” Veloso said.

“We are bringing our ginhawa services closer to our members and retirees by engaging more payment channels so that our stakeholders do not need to visit our offices. It will also complement GSIS efforts to improve the efficiency of our loan collection,” he added.

“We are honored to be part of the GSIS payment platforms for the greater convenience of its members and retirees. We look forward to developing this partnership. Lahat pwede or what we call “pwede-bilities” when you partner with Mr. Lhuillier”, Lhuillier. Said.

Mr. Lhuillier now joins Bayad in accepting advance payments from GSIS. To date, it has collected 173 million pesos in loan repayments from Bayad’s nearly 3,000 payment centers.

Veloso said he hopes to double that feat with Mr. Lhuillier’s payment solutions from more than 2,500 centers.

“Member loan payments are also accepted through Union Bank of the Philippines and Land Bank of the Philippines online applications. This means more GSIS funds can be made available to our members and retirees who need them,” Veloso said.

“We plan to enter into similar agreements with other payment service providers in the coming months to bring our payment channels to 10,000 over-the-counter and online outlets to improve our customer experience,” said added Veloso.

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GSIS expands loan payment channels thanks to Mr. Lhuillier – Manila Bulletin https://leadingdir.com/gsis-expands-loan-payment-channels-thanks-to-mr-lhuillier-manila-bulletin/ Wed, 07 Sep 2022 08:58:00 +0000 https://leadingdir.com/gsis-expands-loan-payment-channels-thanks-to-mr-lhuillier-manila-bulletin/ The Government Service Insurance System (GSIS) will expand its loan repayment solutions to nearly 5,600 collection sites through a partnership signed with Mr. Lhuillier. Government Service Assurance System “We welcome this partnership with Mr. Lhuillier, particularly his strategic presence in the South, as 40% of our members and retirees are in the Visayas and Mindanao,” […]]]>

The Government Service Insurance System (GSIS) will expand its loan repayment solutions to nearly 5,600 collection sites through a partnership signed with Mr. Lhuillier.

Government Service Assurance System

“We welcome this partnership with Mr. Lhuillier, particularly his strategic presence in the South, as 40% of our members and retirees are in the Visayas and Mindanao,” said GSIS President and CEO Wick Veloso, during the MoU signing ceremony on Tuesday, September 7. 6 at the GSIS headquarters in Pasay City.

Mr. Lhuillier, with its 2,576 branches nationwide, is one of the largest non-banking financial services networks in the country.

Veloso also said members and retirees do not need to visit GSIS offices as the agency will be the one to bring its “ginhawa” services closer through partnerships with payment channels.

“We are honored to be part of the GSIS payment platforms for the greater convenience of its members and retirees. We look forward to developing this partnership. Lahat pwede or what we call “pwede-bilities” when you partner with Mr. Lhuillier,” said Michael Lhuillier, President and CEO of Mr. Lhuillier.

Bayad, another GSIS loan payment partner, has already collected 173 million pesos worth of loan payments through its 3,000 payment centers, the agency said.

Members can also repay their loans through the Union Bank of the Philippines and Land Bank of the Philippines online applications.

GSIS plans to forge partnerships with other payment service providers in the coming months to bring its “payment channels to 10,000 over-the-counter and online outlets to enhance our customer experience,” said Veloso.

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Biden extends freeze on student loan payments: When will they resume? https://leadingdir.com/biden-extends-freeze-on-student-loan-payments-when-will-they-resume/ Wed, 24 Aug 2022 21:06:50 +0000 https://leadingdir.com/biden-extends-freeze-on-student-loan-payments-when-will-they-resume/ President Joe Biden extended the pause on student loan payments for the last time on Wednesday and said payments would resume in January 2023. The Biden-Harris administration also introduced up to $20,000 in student loan debt forgiveness for Pell Grant recipients and up to $10,000 for non-recipients. To qualify, borrowers must earn less than $125,000 […]]]>
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Control Your Student Loan Debt: How to Make the Most of the Extended Payment Pause https://leadingdir.com/control-your-student-loan-debt-how-to-make-the-most-of-the-extended-payment-pause/ Wed, 24 Aug 2022 09:00:02 +0000 https://leadingdir.com/control-your-student-loan-debt-how-to-make-the-most-of-the-extended-payment-pause/ President Joe Biden has once again extended pause on federal student loan payments and interestthis time until December 31, 2022. Payments will now resume on January 1, 2023, and Biden has indicated that there will be no further extension of the payment moratorium. However, there are certain advantages to continuing to make payments during the […]]]>

President Joe Biden has once again extended pause on federal student loan payments and interestthis time until December 31, 2022. Payments will now resume on January 1, 2023, and Biden has indicated that there will be no further extension of the payment moratorium.

However, there are certain advantages to continuing to make payments during the break. To do this, you will need to set up repayment online or contact your federal student loan provider. It’s important to remember that during the payment break, the former student loan servicing giant Navient transferred all of its student loans to Aidvantage.

Whether you’re continuing to make student loan repayments during the freeze or starting over in the new year, there are plenty of ways to simplify the student loan repayment process, as well as save time and effort. money along the way. Here are five tips to make it easier to pay off your student loans and help you get out of debt faster.

To learn more about student loans, learn all about Biden’s student loan forgiveness plan and who received the additional $32 billion in student loan forgiveness during Biden’s tenure.

1. Refinance student loans to get lower interest rates

One of the best ways to maximize your student loan repayment is to refinance your private (and sometimes even federal) student loans. It can help you:

  • Lock in a lower interest rate
  • Consolidate your balances
  • Simplify reimbursement on one account
  • Adjust your monthly payment according to your budget

Refinancing is especially useful if your credit has improved since taking out the loan, and can also be used to release a co-signer from your student loan debt. However, no student loan refinancer is perfect for every borrower, so it is important to assess affordability, borrower eligibility criteria, and customer service when researching refinancers.

You can refinance all your loans or just select balances. It is important to note, however, that if you refinance federal student loan debt into a private refinanced loan, you may lose certain benefits, including forbearance or deferment, repayment contingent on income, and student loan forgiveness Opportunities.

2. Pay extra to eliminate your debt faster

Whether it’s an extra $20 per month or an extra payment per year, pay off your student loans faster than expected can help you save on interest and settle your debts faster. Whenever you have room in your budget, making extra payments can reduce your student loan balance — although you should always pay off higher-interest debts first, like credit cards and personal loans.

Most lenders will allow you to make capital-only contributions in addition to your scheduled monthly payment. The sooner you reduce your principal balance, the less interest you will pay over the life of the loan and the sooner you can completely eliminate the debt.

3. Sign up for an autopay program to “set it and forget it”

Setting up an automated payment system can simplify your monthly student loan payments. There’s less risk of making a late payment – ​​which could incur fees and hurt your credit score – and it’s one less thing to worry about.

Plus, it could also save you some money. Many lenders offer rebates in exchange for setting up automatic payments on your loan. These autopay rebates are typically around 0.25%, which can add up over time.

4. Consider income-contingent reimbursement (IDR) plans

Depending on the type of loan and what you can afford each month, you may want to consider the different repayment plan options available to you.

Some federal student loan borrowers may be eligible for income-contingent repayment (IDR) plans. There are four to choose from:

  • REIMBURSEMENT plan (revised according to your income)
  • PAYE plan (pay as you earn)
  • IBR (Income Based Reimbursement) Plan
  • ICR scheme (income contingent reimbursement)

While a standard repayment plan is often the best choice for paying off your loans as quickly as possible, these income-based options can help make monthly payments more affordable for borrowers who can only afford one more payment. small each month. Eligibility for IDR plans is based on family size and discretionary income (income after taxes and necessities such as housing, food, utilities, and transportation).

By enrolling in one of these programs now, before student loan payments become due again in January, you can ensure that you are able to afford your monthly student loan payment.

5. See if you qualify for additional student loan forgiveness

While Biden’s student loan debt forgiveness plan includes $10,000 to $20,000 for all borrowers earning less than $125,000 per yearthe Department of Education repaid $32 billion in student loans for public servants, people with disabilities and victims of college fraud since Biden took office in January 2021.

Usually, student loan forgiveness is available to federal borrowers who work as eligible public servants, such as teachers, government employees, and nonprofit workers. Other loan forgiveness may result from unique circumstances, such as the COVID-19 pandemic, or as a result of government policy, such as the $5.8 billion discharged for borrowers with permanent disabilities in August 2021.

Loans can also be canceled or canceled for other reasons; if your school closes before or shortly after you graduate, if you or a borrowing parent dies, or (in some cases) after declaring bankruptcy. Other borrowers can take advantage of established programs that can forgive, cancel or discharge their debt. It’s important to remember, of course, that you will still need to make one-time payments on the loan(s) until you qualify for a rebate.

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Biden will announce his decision this week https://leadingdir.com/biden-will-announce-his-decision-this-week/ Sun, 21 Aug 2022 07:00:00 +0000 https://leadingdir.com/biden-will-announce-his-decision-this-week/ President Joe Biden (Photo by Drew Angerer/Getty Images) Getty Images President Joe Biden will announce his decision on suspending student loan payments this week. Here’s what you need to know — and what it means for your student loans. Student loans US Education Secretary Miguel Cardona confirmed on Sunday that Biden will announce this week […]]]>

President Joe Biden will announce his decision on suspending student loan payments this week.

Here’s what you need to know — and what it means for your student loans.

Student loans

US Education Secretary Miguel Cardona confirmed on Sunday that Biden will announce this week whether he will extend the student loan payment suspension for a record seventh time. The student loan payment pause ends Aug. 31, 2022, but the Biden administration has been silent on next steps for student borrowers. “We know August 31 is a date that a lot of people are waiting to hear from,” Cardona told Chuck Todd on NBC’s Meet The Press. “We talk about it daily, and I can tell you the American people will hear it by next week.”


Suspension of student loan payment

In response to the Covid-19 pandemic, Congress instituted the suspension of student loan payments in March 2020. Through the Cares Act – the $2 trillion stimulus package – Congress passed relief student loan history, including:

President Donald Trump has extended the student loan moratorium twice and Biden has extended it four times. Student loan borrowers have not been required to make a single federal student loan payment since March 2020, which includes the entire term of Biden’s presidency.


Student loan forgiveness: Biden could announce decision this week

In addition to a possible extension of the student loan payment pause, Biden could also announce his decision on large-scale student loan forgiveness this week. There are at least three reasons why Biden could extend the student loan payment pause and enact large-scale student loan forgiveness. Leaked documents from the US Department of Education show a proposed $10,000 student loan forgiveness for all federal borrowers earning up to $150,000. However, there is no guarantee that Biden will support this proposal. Republicans also released a blockbuster plan on student loan forgiveness that offers an alternative vision for the future of student loans. More than 40 million student borrowers are eagerly awaiting Biden’s decision on student loan forgiveness. However, the Biden administration has remained relatively silent on whether the president plans to implement a broad student loan cancellation. Since becoming president, Biden has forgiven $32 billion in student loans through targeted student loan forgiveness.


Student loans: next steps

Expect Biden’s decisions on student loan forgiveness and student loan payment to end any day now. Progressive Democrats want Biden to extend the student loan payment pause and enact $50,000 in student loan forgiveness. Congressional Republicans oppose any large-scale student loan forgiveness and want student loan repayments to resume immediately. What will Biden do? Regardless of the president’s decision, most student borrowers will still need a student loan repayment game plan. Make sure you understand all of your options for repaying your student loans. Here are some great ways to save money on your student loans:


Student Loans: Related Reading

Cancellation of student loans: Congress proposes 0% interest rates for student loans

Student loan forgiveness must be extended, attorneys general warn

BidenStudent loan forgiveness: 5 key takeaways from the new student loan forgiveness plan

Senators propose major changes to student loan forgiveness

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Education Department Confirms Biden Will Decide Soon https://leadingdir.com/education-department-confirms-biden-will-decide-soon/ Wed, 17 Aug 2022 12:30:00 +0000 https://leadingdir.com/education-department-confirms-biden-will-decide-soon/ President Joe Biden (Photo by MANDEL NGAN/AFP via Getty Images) AFP via Getty Images The US Department of Education has now confirmed that President Joe Biden will “soon” decide whether the student loan payment break will be extended. Here’s what you need to know — and what it means for your student loans. Student loans […]]]>

The US Department of Education has now confirmed that President Joe Biden will “soon” decide whether the student loan payment break will be extended.

Here’s what you need to know — and what it means for your student loans.

Student loans

This is the critical time in America for student loans. Biden faces three deadlines that will impact the future of student loan repayment and student loan forgiveness. First, the student loan payment pause ends on August 31, 2022. Absent an unprecedented seventh student loan forbearance extension, federal student loan payments will resume on September 1. Second, in a few days, Biden could announce his decision on a large-scale student loan. forgiveness for over 40 million student borrowers.


Student loan payment break: announcement coming any day

Within days, Biden could announce an extension to the student loan payment pause, which means student borrowers would not be required to make mandatory federal student loan payments. Federal student loan repayments have been on hold since March 2020, when Congress passed historic student loan relief. Alternatively, Biden could allow the student loan payment pause to expire as scheduled, meaning student loan borrowers would begin student loan repayments again within weeks. If Biden extends student loan relief, you should expect these 5 things. However, the student loan payment break ends in less than 15 days and Biden has remained silent. For previous student loan forbearance extensions, student borrowers received longer notice. This could suggest that Biden does not plan to extend student loan relief. That said, the Department of Education recently asked student loan servicers to suspend sending student loan bills to borrowers. Here’s when the president extended every student loan payment break:

Position 1: On August 8, 2020, President Donald Trump extended the student loan payment break until December 31, 2020.

Position 2: On December 4, 2020, Trump extended the student loan payment break until January 31, 2021.

Expansion #3: On January 20, 2021, Biden’s first day as president, Biden extended the student loan payment break until September 30, 2021.

Expansion #4: On August 6, 2021, Biden extended the student loan payment break until January 31, 2022.

Position 5: On December 22, 2021, Biden extended the student loan payment break until May 1, 2022.

Position 6: On April 6, 2022, Biden extended the student loan payment break until August 31, 2022.

“Yes, [the student loan payment pause] should end at the end of this month,” U.S. Secretary of Education Miguel Cardona told CBS News. “Although I don’t have an announcement here today, I will let you know that we are having daily conversations with the White House, and borrowers will hear directly from us soon when a decision is made.”


Student Loan Forgiveness: Historic Student Loan Relief

Biden is also considering historic student loan relief through large-scale student loan forgiveness. Who Could Benefit From Student Loan Forgiveness? According to leaked internal Department of Education documents, the Biden administration is considering $10,000 in student loan forgiveness for all federal borrowers. Student loan forgiveness could include borrowers with Direct Loans, Parent PLUS Loans, Grad PLUS Loans, Perkins Loans, and FFELP Loans. Biden also assesses an income threshold of $150,000 for individuals or $250,000 for families. If the Department of Education has your income information, expect student loan forgiveness within 45 days. Alternatively, student borrowers could apply online and self-report their income, with student loan forgiveness possible in about 90 days. There is no guarantee that Biden will embrace broad student loan cancellation. However, since becoming president, Biden has canceled $32 billion in student loans through targeted student loan cancellation.


Student loans: next steps

Here’s what happens next if Biden cancels student loans or extends the student loan payment break. Biden could make a double announcement regarding the two policies before Aug. 31, which could give respite to borrowers worried about the ongoing Covid-19 pandemic and uncertain economic outlook. Biden is facing pressure from Republicans in Congress who have proposed a blockbuster new plan to cancel student loans. Republicans say Biden has canceled $400 billion in student loans — far too expensive for the federal government — and should end the student loan payment hiatus immediately. Despite all the uncertainty surrounding your student loans, your best strategy is to prepare a student loan repayment game plan. Neither student loan forgiveness nor student loan payment suspension is a long-term solution. Here are popular ways to pay off student loans and save money:


Student Loans: Related Reading

Student Loan Forgiveness: 5 Key Takeaways from the New Student Loan Forgiveness Plan

Cancellation of student loans: Congress proposes 0% interest rates for student loans

Senators propose major changes to student loan forgiveness

Student loan forgiveness must be extended, Biden attorneys general warn

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3 signs the student loan payment suspension could be extended until 2023 https://leadingdir.com/3-signs-the-student-loan-payment-suspension-could-be-extended-until-2023/ Sat, 13 Aug 2022 11:30:06 +0000 https://leadingdir.com/3-signs-the-student-loan-payment-suspension-could-be-extended-until-2023/ Since March 2020, students in debt can take advantage of the extension moratorium on federal student loan repayments and interest. The pause on loan repayments has already been extended six times – twice by President Donald Trump and four times by President Joe Biden. Now the clock is ticking and anxious borrowers want to know […]]]>

Since March 2020, students in debt can take advantage of the extension moratorium on federal student loan repayments and interest. The pause on loan repayments has already been extended six times – twice by President Donald Trump and four times by President Joe Biden. Now the clock is ticking and anxious borrowers want to know if they will have to resume payments on September 1.

Many experts believe Biden will announce another extension, potentially until the end of the year or even later. “Our outlook … assumes the federal student loan payment moratorium will last through January 2023,” Anthony Noto, CEO of student lender SoFi, told investors on an Aug. 2 earnings call.

According to the Wall Street Journal, the Department of Education has also asked student loan servicers not to send new billing statements.

Here’s what you need to know about federal student loan repayments, including how long the pause will last, what other benefits it includes and whether Biden will push for more student debt forgiveness.

Three clues about student loan repayments could be suspended again

President Biden has not yet indicated whether he will suspend student debt payments again, but there are several indications that he might.

1. Inflation remains a major problem

As the country has turned its back on the coronavirus pandemic, the White House has repeatedly said decisions about suspending student loans will be driven by what’s happening with the economy. While inflation slowed in July, food, shelter and other essential services are still very high. On Aug. 10, grocery store prices rose 13.1% year over year — the biggest increase since March 1979, according to the Bureau of Labor Statistics.

And economists are still predicting that a recession could be coming.

“Excessive inflation has driven up the prices of almost everything, and most borrowers are unlikely to be able to repay their loans,” Tony Aguilar, CEO of student loan repayment app Chipper, told sister site from CNET, NextAdvisor. “A further extension also gives the White House more time to review potential pardon plans.”

2. Lenders have been asked to postpone contacts with borrowers

“The situation is that we are almost 30 days away from the expected recovery and the [Department of Education] told repairers to suspend trade-in communications for the past few months,” Scott Buchanan, executive director of the nonprofit Student Loan Servicing Alliance, told The Wall Street Journal on July 25. “Maybe the department expects the White House to once again throw the can on the road.”

Zack Friedman, CEO of online financial marketplace Mentor, wrote in Forbes that in theory, “Biden could continue to extend student loan relief through multiple executive orders, creating a student loan payment pause” for still “.” Or at least until he leaves office.

3. Another extension could appeal to young voters in the midterm elections

Despite improving job numbers and lower gas prices, Biden’s approval ratings haven’t been great heading into the midterm elections. On August 9, 55% of Americans disapproved of the president, according to Reuters.

Throwing a bone to the more than 40 million Americans with federal student loans could help bolster the appeal of Democrats on Nov. 8.

A graduation hat and a diploma with money

Weeks away from resuming student loan repayments, the Department for Education told services not to send new billing statements.

Peter Dazeley/Getty Images

What happens to defaulting borrowers?

Federal student debt repayments have been suspended for more than two years, meaning interest has not accrued and collections on defaulted debt have been suspended.

Borrowers in default will automatically receive a “fresh start”, according to a statement from the US Department of Education. Their accounts will be restored to good standing and any defaults will be “healed”, allowing them to repair their credit and access programs such as income-contingent repayment and civil service loan forgiveness, which benefits those who work for non-profit organizations.

“During the break, we will continue our preparations to give borrowers a fresh start and ensure that all borrowers have access to repayment plans tailored to their circumstances and financial needs,” said Miguel Cardona, Secretary of the education, in a press release.

Will more student debt be forgiven?

During the campaign, Biden said he would support legislation canceling a minimum of $10,000 in federal loans per borrower. Democratic lawmakers would like to see that amount increased to $50,000, Bloomberg reported, in hopes of swaying young voters in November.

If he forgives more student debt, Biden would likely cap eligibility for people earning $125,000 or $150,000 a year.

Republicans in Congress argued that the president lacked the power to write off billions in student debt and introduced legislation to block it.

But there are signs the White House sees things differently: Following the Department of Education’s overhaul of its civil service loan forgiveness program in October 2021, more than 750,000 borrowers had their loans students go out, totaling more than $18.5 billion as of May 2022.

In 2019, Harvard Law School’s Predatory Student Loan Project filed a lawsuit against then-Education Secretary Betsy DeVos, claiming her office had blocked applications for the student advocacy program. until repaid, which allows federal student loan debt to be canceled if the borrower has been the victim of fraud. by their school.

In July, the Biden administration accepted the plaintiff’s arguments that the education secretary has “considerable discretion” to write off federal student loan debt, Forbes reported. (This month, a federal judge granted preliminary approval to a settlement that would give some 200,000 defrauded borrowers about $6 billion in debt relief.)

Whatever Biden’s decision on more student debt forgiveness, borrowers and financial institutions are eager to hear. At a White House press conference on April 28, the president said he would make a decision on canceling student debt “in the coming weeks.”

It was almost three months ago.

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Student loan payments: Why experts think Biden will extend the hiatus https://leadingdir.com/student-loan-payments-why-experts-think-biden-will-extend-the-hiatus/ Sat, 13 Aug 2022 11:30:06 +0000 https://leadingdir.com/student-loan-payments-why-experts-think-biden-will-extend-the-hiatus/ More than 40 million borrowers are still waiting to hear whether President Joe Biden will extend the student loan payment freeze, even though the current moratorium is due to expire in just two weeks. In June, Education Secretary Miguel Cardona said borrowers would be given “ample notice” of any extensions. On Tuesday, however, all Cardona […]]]>

More than 40 million borrowers are still waiting to hear whether President Joe Biden will extend the student loan payment freeze, even though the current moratorium is due to expire in just two weeks.

In June, Education Secretary Miguel Cardona said borrowers would be given “ample notice” of any extensions. On Tuesday, however, all Cardona could say was that an announcement was coming “soon.”

“Although I don’t have an announcement here today, I will let you know that we are having daily conversations with the White House and borrowers will hear directly from us soon when a decision is made,” he said. he told CBS News’ Gayle King. .

Even without an official word, many analysts believe Biden will continue the current freeze, possibly until the end of the year or even later.

Michele Streeter, senior director of college affordability at the Institute for College Access and Success, told The New York Times last week that “it’s very likely there will be another extension.”

Here’s what you need to know about federal student loan repayments, including signs the pause will be extended, what happens to defaulting borrowers and whether Biden will push for more student debt cancellation.

To learn more about student debt, find out if you are eligible for a waiver of public student loan forgivenessIf you should continue to repay your loan during the break, and the pros (and cons) refinance your student loan.

Three signs that student loan payments will continue to be suspended

President Biden has yet to indicate whether he will extend the pause on student debt repayment, but there are several clear indications that he will.

1. Inflation remains a major problem

As the country has turned its back on the coronavirus pandemic, the White House has repeatedly said decisions about suspending student loans will be driven by what’s happening with the economy.

While inflation slowed in July, food, shelter and other essential services are still very high. On Aug. 10, grocery store prices rose 13.1% year over year — the biggest increase since March 1979, according to the Bureau of Labor Statistics.

And many economists are still predicting that a recession could be coming.

“Excessive inflation has driven up the prices of almost everything, and most borrowers are unlikely to be able to repay their loans,” Tony Aguilar, CEO of student loan repayment app Chipper, told sister site from CNET, NextAdvisor. “A further extension also gives the White House more time to review potential pardon plans.”

2. Lenders have been asked to postpone contacts with borrowers

“The situation is that we are almost 30 days away from the expected recovery and the [Department of Education] told repairers to suspend trade-in communications for the past few months,” Scott Buchanan, executive director of the nonprofit Student Loan Servicing Alliance, told The Wall Street Journal on July 25.

“Perhaps the department expects the White House to kick down the street,” Buchanan said.

Zack Friedman, CEO of online financial marketplace Mentor, wrote in Forbes that in theory, “Biden could continue to extend student loan relief through multiple executive orders, creating a student loan payment pause” forever. “”.

Or at least until he leaves office.

3. Another extension could attract young voters to the midterm elections

Despite improving job numbers and lower gas prices, Biden’s approval ratings haven’t been great heading into the midterm elections. On August 9, 55% of Americans disapproved of the president, according to Reuters.

Throwing a bone to the more than 40 million Americans with federal student loans could help bolster the appeal of Democrats on Nov. 8.

A graduation hat and a diploma with money

The Ministry of Education has told repairers not to send new billing statements.

Peter Dazeley/Getty Images

How long could the student loan repayment freeze be extended?

If Biden hopes to drum up support for Democrats in the midterm elections, he will likely extend the current freeze at least through the end of the year.

“Our outlook … assumes the federal student loan payment moratorium will last through January 2023,” Anthony Noto, CEO of student lender SoFi, told investors on an Aug. 2 earnings call.

Some experts believe Biden will push it even further, possibly until July 2023. That’s the earliest new regulations governing student loans could start to take effect.

It would also give the White House more time to try to drum up support for more federal student loan forgiveness.

What happens to defaulting borrowers?

Federal student debt repayments have been suspended for more than two years, meaning interest has not accrued and collections on defaulted debt have been suspended.

Borrowers in default will automatically receive a “fresh start”, according to a statement from the US Department of Education. Their accounts will be restored to good standing and any defaults will be “healed”, allowing them to repair their credit and gain access to programs such as income-contingent repayment and civil service loan forgiveness, that benefit those who work for non-profit organizations.

“During the break, we will continue our preparations to give borrowers a fresh start and ensure that all borrowers have access to repayment plans tailored to their circumstances and financial needs,” said Miguel Cardona, Secretary of the education, in a press release.

Will there be additional student debt forgiveness?

During the campaign, Biden said he would support legislation canceling a minimum of $10,000 in federal loans per borrower. Democratic lawmakers would like to see that amount increased to $50,000, Bloomberg reported, in hopes of swaying young voters in November.

If he forgave more student debt, Biden would likely cap eligibility for people earning $125,000 or $150,000 a year.

Republicans in Congress have argued that the president lacks the power to write off billions in student debt and introduced legislation to block it.

But there are signs the White House sees things differently: Following the Department of Education’s overhaul of its civil service loan forgiveness program in October 2021, more than 750,000 borrowers had their loans students go out, totaling more than $18.5 billion as of May 2022.

In 2019, the Predatory Student Loans Project sued then-Education Secretary Betsy DeVos, claiming her office blocked Borrower Defense Program applications until repayment. which helps to cancel federal student loan debt if the borrower has been defrauded by their school.

In July, the Biden administration accepted the plaintiff’s arguments that the Education Secretary has “considerable discretion” to write off federal student loan debt, Forbes reported.

On August 4, a federal judge granted preliminary approval to a settlement that would provide $6 billion in debt relief to some 200,000 borrowers who say they were defrauded by for-profit colleges like Lincoln Tech, American National University and Keizer University.

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