Payments will resume for 8 million student loan borrowers after a year-long break.
The Education Ministry has announced that starting August 1st, nearly 8 million student loan borrowers on SAVE plans will see interest charges resume. This gives borrowers only three weeks to explore their options and potentially switch to a different repayment plan. Payments and interest related to Biden’s plan have been on hold since last summer, […]
Student loan borrowers might experience payment increases due to Trump’s significant bill.
Student loan payments might spike as changes under President Trump’s expansive new bill take effect. Borrowers, especially those who have been relying on temporary measures, are likely to feel the squeeze next summer. As the proposed budget awaits approval, an analysis by the Research Nonprofit Student Borrower Conservation Center suggests that a typical borrower could […]
Two million student loan borrowers face potential wage garnishment: Analysis
Recent estimates from Transunion reveal that around 2 million student loan borrowers risk missing payments this summer. Approximately 6 million federal student loan borrowers have fallen behind, with over 90 days of missed payments. A significant portion of them, about a third, could default as soon as next month, as noted in an analysis released […]
Millions of student loan borrowers may see their credit scores drop as payments restart.
Panelists Caroline Downey and Cage Sawyer recently discussed the troubling rise in student loan delinquencies, questioning whether the price tag for current and future university students is justified. A recent report from the New York Federal Reserve reveals that while credit card debt among Americans has decreased, student loan delinquencies have surged, negatively impacting credit […]
Borrowers with defaulted student loans are now dealing with debt collections.
Starting Monday, millions of borrowers who have defaulted on their student loans will get notifications about their accounts being sent to collections. This decision follows the Department of Education’s announcement last month aimed at shielding U.S. taxpayers from bearing costs linked to federal student loans. The department emphasized that borrowers willingly took on these loans […]
Student loan borrowers at risk of garnished wages: What to know
Default student loan borrowers will need to plan in the coming weeks as the Trump administration plans to resume unwilling collections for those who missed payments. Five years later, the Ministry of Education announced on Monday that it had defaulted or people who had not paid loans for more than 270 days. The change is […]
Trump admin ends Biden’s free ride: 5+ million deadbeat student loan borrowers to face collections
President Donald Trump’s Department of Education announced Monday that he will soon be able to finish the former Biden administration’s free ride for student loan borrowers by default. ED’s Federal Student Aid Agency will resume collections on May 5th for more than 5 million borrowers who have not paid for at least 360 days. Another […]
Student loan borrowers face hits to credit score: NY Fed
(News Nation) – Some student loan borrowers face penalties for late payments on federal student loans. If delinquency appears in credit reports for the first half of 2025, more than 9 million borrowers could face a significant drop in their credit scores. Federal Reserve Bank of New York. After a pandemic-era suspension in September 2023 […]
Supreme Court takes up Biden's proposal to expand relief for borrowers defrauded by schools
The Supreme Court decided Friday to accept the Biden administration's appeal defending its proposal to ease applications for the Borrower Defense Student Debt Relief Program. In a short order, the justices agreed to review an appeals court ruling that upheld a challenge by Texas school groups that argued the government lacked the authority to expand […]
Biden administration forgives $4.5 million in student debt for 60,000 borrowers
Borrowers who work in the public service sector or the government are eligible for this exemption. (iStock ) An additional 60,000 student loan borrowers will receive student loan relief in the coming weeks. of Biden administration announces $4.5 billion in relief for public servants such as nurses, teachers, and social workers. This relief comes as […]