Inflation is doing a crab walk and Fed officials fear its pinch
2 years, 1 month ago

Inflation is doing a crab walk and Fed officials fear its pinch

CNN  

A version of this story first appeared in CNN Business’ Before the Bell newsletter. Researchers at the Federal Reserve Bank of New York have issued a dire warning: If President Joe Biden’s student loan forgiveness plan doesn’t come to fruition, the US could face another credit crisis. An analysis by the New York Fed found that roughly $441 billion of federal student loans are eligible for forgiveness under the proposal, canceling about 30% of all outstanding federal student loan debt. But, “if payments resume without debt relief, we expect both student loan default and delinquencies to rise and potentially surpass pre-pandemic levels,” warned Fed researchers. The data “may be suggestive of problems to come, a sign of economic distress that may appear particularly concerning when the burden of student loan payments resumes.” Future concerns: If student loan borrowers expect future debt cancellation, they may borrow even more, said researchers, which would increase debt balances even more sharply.

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History of this topic

Could federal upheaval erase student loan debt? Not so fast
1 month ago

Could federal upheaval erase student loan debt? Not so fast

Salon  

For student loan borrowers, the latest social media rumor sounds alluring: that the Elon Musk-led dismantling of the Department of Education and ensuing breaches of private data could cancel the debt they owe. The viral videos highlight a period of financial insecurity for 43 million borrowers who owe about about $1.64 trillion in outstanding federal student loans, according to U.S. …

Consumer debt delinquency is rising
1 month, 2 weeks ago

Consumer debt delinquency is rising

Salon  

Consumer debt delinquency rose in the fourth quarter to its highest level in almost five years, suggesting financial struggles persist across the U.S. amid higher inflation and interest rates, Bloomberg reported. Delinquent debt refers to financial obligations — such as loans or credit card payments — that have been delayed past their due dates, which may in turn affect credit …

Student loan borrowers can slash their monthly payments — for now. Here’s what to know
8 months, 4 weeks ago

Student loan borrowers can slash their monthly payments — for now. Here’s what to know

LA Times  

Student loan borrowers enrolled in a new federal repayment plan could see their monthly payments cut in half in the near future, thanks to a last-minute reprieve by a federal appeals court. “Where we are is just not fair for student loan borrowers.” The Education Department continues to work on a separate rule that would offer debt relief to an …

Biden administration is moving toward a narrower student loan relief targeting groups of borrowers
1 year, 4 months ago

Biden administration is moving toward a narrower student loan relief targeting groups of borrowers

The Independent  

For free real time breaking news alerts sent straight to your inbox sign up to our breaking news emails Sign up to our free breaking news emails Sign up to our free breaking news emails SIGN UP I would like to be emailed about offers, events and updates from The Independent. Read our privacy policy The Biden administration is moving …

Biden administration is moving toward a narrower student loan relief targeting groups of borrowers
1 year, 4 months ago

Biden administration is moving toward a narrower student loan relief targeting groups of borrowers

Associated Press  

WASHINGTON — The Biden administration is moving toward a narrower student loan relief plan that would target specific groups of borrowers — those with soaring interest, for example — rather than a sweeping plan like the one the Supreme Court rejected in June. Though full details are likely months away, the department says it wants to cancel some or all …

Borrowers reassess their budgets as student loan payments resume after pandemic
1 year, 5 months ago

Borrowers reassess their budgets as student loan payments resume after pandemic

Live Mint  

Millions of Americans must start repaying their federal student loans again in October, with monthly payments averaging hundreds of dollars. “If they were forgiven out of the blue, I'd be ecstatic.” The Supreme Court in July rejected a plan by President Joe Biden's administration to wipe away $400 billion in student loan debt. On an earnings call last month, the …

Why is the Biden administration forgiving student debt?
1 year, 5 months ago

Why is the Biden administration forgiving student debt?

Al Jazeera  

US President Joe Biden has announced a new round of federal student loan forgiveness to address the “unsustainable debt” that borrowers accumulate to complete their college education. Student loan repayments restarted this month after being frozen since the COVID pandemic, and the Biden administration has adjusted earlier proposals that were rejected, to help relieve student debt. “It is unconscionable that, …

The US is forgiving more federal student loans in a bid to tackle ‘unsustainable debt’ for borrowers
1 year, 5 months ago

The US is forgiving more federal student loans in a bid to tackle ‘unsustainable debt’ for borrowers

Associated Press  

WASHINGTON — President Joe Biden outlined a new round of federal student loan forgiveness on Wednesday to address the “unsustainable debt” that borrowers accumulate to complete their college education. Biden said the decision was responsible for “snatching from the hands of millions of Americans thousands of dollars of student debt relief that was about to change their lives.” He has …

Biden announces more student debt relief as payments resume after pandemic pause
1 year, 5 months ago

Biden announces more student debt relief as payments resume after pandemic pause

LA Times  

President Biden announced another round of federal student loan forgiveness on Wednesday as borrowers brace for payments to restart after a three-year pause that began during the COVID-19 pandemic. The president has been relying on a patchwork of different programs to chip away at debt, such as public service loan forgiveness and the SAVE plan — Saving on a Valuable …

Borrowers are reassessing their budgets as student loan payments resume after pandemic pause
1 year, 6 months ago

Borrowers are reassessing their budgets as student loan payments resume after pandemic pause

Associated Press  

NEW YORK — Millions of Americans must start repaying their federal student loans again in October, with monthly payments averaging hundreds of dollars. “If they were forgiven out of the blue, I’d be ecstatic.” The Supreme Court in July rejected a plan by President Joe Biden’s administration to wipe away $400 billion in student loan debt. On an earnings call …

Borrowers are reassessing their budgets as student loan payments resume after pandemic pause
1 year, 6 months ago

Borrowers are reassessing their budgets as student loan payments resume after pandemic pause

The Independent  

For free real time breaking news alerts sent straight to your inbox sign up to our breaking news emails Sign up to our free breaking news emails Sign up to our free breaking news emails SIGN UP I would like to be emailed about offers, events and updates from The Independent. “If they were forgiven out of the blue, I'd …

Explained | The U.S. student loan crisis and Joe Biden’s new cancellation plan
1 year, 8 months ago

Explained | The U.S. student loan crisis and Joe Biden’s new cancellation plan

The Hindu  

The story so far: United States President Joe Biden has already released a new plan to cancel billions in student loan debt after the conservative majority Supreme Court of the U.S. in a 6-3 decision on June 30 blocked his ambitious plan to cancel $430 billion in debt. The president announced on the day of the Court ruling that the …

Retailers, beware: Resumption of student loan payments could lead some buyers to pull back
1 year, 8 months ago

Retailers, beware: Resumption of student loan payments could lead some buyers to pull back

Associated Press  

WASHINGTON — The reprieve is over. Even if all that won’t be enough to weaken overall economic growth, the shift in spending by many young adults could inject further uncertainty into an economy already beset by uncertainties, from whether the Fed will manage to tame inflation and halt its interest rate hikes to whether a recession is destined to strike …

Supreme Court’s student loan ruling dealt Biden a setback. Here’s his new plan
1 year, 9 months ago

Supreme Court’s student loan ruling dealt Biden a setback. Here’s his new plan

LA Times  

When President Biden announced his plan to cancel up to $20,000 in federal student loans for some borrowers last August, he framed it as part of a multipronged approach to ease the burden on loan holders and prevent a wave of defaults. The Biden administration now faces an unprecedented task: helping tens of millions of borrowers make payments in a …

Crushed student loan borrowers are skipping meals, moving in with parents, panicking over money
1 year, 9 months ago

Crushed student loan borrowers are skipping meals, moving in with parents, panicking over money

LA Times  

D’Aungilique Jackson of Fresno holds a “Cancel Student Debt” sign outside the U.S. Supreme Court after justices stuck down President Biden’s student debt relief program in Washington, D.C. Mimi Hoang rejoiced when President Biden announced plans last year to cancel thousands of dollars in student debt. As she faced the prospect of tripling her loan debt by staying at Southern …

The pause on student loans is ending. That could be a storm cloud for the economy
1 year, 9 months ago

The pause on student loans is ending. That could be a storm cloud for the economy

CNN  

New York CNN — Millions of Americans are about to get a rude awakening in their monthly budget: Federal student loan payments are back. “Loan payments covering 44 million students will have to resume — obviously a headwind, taking approximately $70 billion annually out of the economy,” said Greg Valliere, chief US policy strategist at AGF Investments. The return of …

Here’s when your student loan payments will start again
1 year, 9 months ago

Here’s when your student loan payments will start again

CNN  

Washington CNN — After a more than three-year pause, borrowers will have to restart paying their federal student loan bills in October. The National Association of Student Financial Aid Administrators warns that borrowers may need to have patience when contacting their student loan servicer, which might be overwhelmed with a high volume of inquiries at this time. Some borrowers could …

What the Supreme Court's rejection of student loan relief means for borrowers
1 year, 9 months ago

What the Supreme Court's rejection of student loan relief means for borrowers

NPR  

What the Supreme Court's rejection of student loan relief means for borrowers Enlarge this image María Hergueta for NPR María Hergueta for NPR In one of the most anticipated decisions of its current term, the U.S. Supreme Court has struck down President Biden's sweeping plan to discharge some or all federal student loan debt for tens of millions of Americans. …

The pause on student loan payments is ending. Can borrowers find room in their budgets?
1 year, 9 months ago

The pause on student loan payments is ending. Can borrowers find room in their budgets?

The Independent  

For free real time breaking news alerts sent straight to your inbox sign up to our breaking news emails Sign up to our free breaking news emails Sign up to our free breaking news emails SIGN UP I would like to be emailed about offers, events and updates from The Independent. More than 40 million Americans will be on the …

Student loan payments will start again soon. The Supreme Court’s ruling means higher bills for many
1 year, 9 months ago

Student loan payments will start again soon. The Supreme Court’s ruling means higher bills for many

Associated Press  

WASHINGTON — In a good month, Celina Chanthanouvong has about $200 left after rent, groceries and car insurance. “I worry that we’re going to see levels of default of new graduates that we’ve never seen before,” said Natalia Abrams, president of the nonprofit Student Debt Crisis Center. Biden announced late Friday a new plan to pursue student debt cancellation, using …

Student loan dilemma rises again as debt ceiling deal unveils surprises. Here's all you need to know
1 year, 9 months ago

Student loan dilemma rises again as debt ceiling deal unveils surprises. Here's all you need to know

Hindustan Times  

As the bipartisan bill to raise the debt ceiling approaches becoming law, college students and graduates across the nation are anxiously awaiting news about the future of their student loans. In this article, we will explore the potential implications of the debt ceiling deal on student loan borrowers and shed light on the challenges they may face. The debt ceiling …

Senate passes GOP-led resolution to block Biden's student loan relief plan
1 year, 9 months ago

Senate passes GOP-led resolution to block Biden's student loan relief plan

NPR  

Senate passes GOP-led resolution to block Biden's student loan relief plan Enlarge this image toggle caption Paul Morigi/Getty Images Paul Morigi/Getty Images The Senate passed legislation on Thursday seeking to repeal the Biden administration's student loan relief plan, setting up a pledged veto from the president. The relief plan, which would cancel up $20,000 in federal student loan debt for …

Explained | What’s the latest on Biden’s U.S. student loan forgiveness?
2 years, 4 months ago

Explained | What’s the latest on Biden’s U.S. student loan forgiveness?

The Hindu  

The story so far: U.S. President Joe Biden's plan to forgive federal student loans, first announced in August, has been blocked by two legal challenges, clouding the financial future for millions of American students and graduates. The six Republican-run states that have sued to block Mr. Biden's executive order argue he skirted congressional authority and the plan threatens future tax …

Biden facing pressure to extend student loan payment pause
2 years, 4 months ago

Biden facing pressure to extend student loan payment pause

Associated Press  

WASHINGTON — In the days and weeks before the midterm election, President Joe Biden trumpeted his plan to cancel billions in student loans as he rallied young people to support Democrats. “We bear no blame in this broken system.” The impasse has left the White House in a bind over whether to extend the moratorium if the legal battle drags …

After cancellation, Dems look to reduce future student debt
2 years, 6 months ago

After cancellation, Dems look to reduce future student debt

Associated Press  

WASHINGTON — Building on President Joe Biden’s student debt cancellation plan, House Democrats on Thursday proposed new legislation that would increase federal student aid, lower interest rates on loans and take other steps to make college more affordable. The bill is being pushed as a complement to Biden’s plan, which promises to wipe away student debt for millions of Americans …

For many with student loans, the interest hurts the most. This congressman would know
2 years, 7 months ago

For many with student loans, the interest hurts the most. This congressman would know

LA Times  

Forty-three million Americans owe a collective $1.6 trillion in federal student loan debt. “That includes drastically increasing Pell Grants, reforming our college accountability system to hold bad actors accountable, and eliminating federal interest for future borrowers.” Rep. Eric Swalwell, at home with his family, said he supports Biden’s plan on student loans but says it fails to address the long-term …

Student loan crisis awaits new generation despite President Joe Biden's plan
2 years, 7 months ago

Student loan crisis awaits new generation despite President Joe Biden's plan

Firstpost  

The spectre of heavy debt will still loom over current high school seniors — and everyone after them — since the debt cancellation only applies to those who took out federal student loans before 1 July Washington: For millions of Americans, President Joe Biden’s student loan cancellation offers a life-changing chance to escape the burden of debt. She wishes Biden’s …

Student loan relief highlights burden on Black borrowers
2 years, 7 months ago

Student loan relief highlights burden on Black borrowers

Associated Press  

Gabrielle Perry, a 29-year-old epidemiologist in New Orleans, expects $20,000 of her $135,000 student loan debt to be wiped out under the plan announced this week by President Joe Biden. So your quote-unquote wealth doesn’t even have time to be built because you’re trying to help your family survive.” Black borrowers on average carry about $40,000 in federal student loan …

Student loan crisis awaits new generation despite Biden plan
2 years, 7 months ago

Student loan crisis awaits new generation despite Biden plan

Associated Press  

WASHINGTON — For millions of Americans, President Joe Biden’s student loan cancellation offers a life-changing chance to escape the burden of debt. She wishes Biden’s debt plan, or something like it, would be available to her and her peers, saying it would be “an incentive to have more people go to college.” In Olathe, Kansas, high-school senior Natalie Ren said …

Conservatives Throw A Fit Over Biden's Student Debt Forgiveness Plan
2 years, 7 months ago

Conservatives Throw A Fit Over Biden's Student Debt Forgiveness Plan

Huff Post  

LOADING ERROR LOADING President Joe Biden’s announcement Wednesday that the U.S. Department of Education would cancel $10,000 to $20,000 in student debt for millions of people was good news to many who took out federal loans to go to school. Biden's student loan forgiveness plan may win Democrats some votes, but it fuels inflation, foots taxpayers with other people’s financial …

Biden's Debt Relief Is The Biggest Break For Student Debtors In Decades
2 years, 7 months ago

Biden's Debt Relief Is The Biggest Break For Student Debtors In Decades

Huff Post  

LOADING ERROR LOADING President Joe Biden’s announcement Wednesday that the federal government would cancel a big chunk of student loan debt represents the biggest break student debtors have had in decades. Under the student loan cancellation Biden announced Wednesday, the federal government will cancel as much as $20,000 in debt for current or former student borrowers who also received need-based …

Column: Republicans attacking student loan relief as a taxpayer burden got their own degrees on taxpayers’ dime
2 years, 7 months ago

Column: Republicans attacking student loan relief as a taxpayer burden got their own degrees on taxpayers’ dime

LA Times  

Royce Hall at UCLA, which was free for California students until 1970. President Biden’s student loan relief proposal, including a freeze on payments through the end of the year and forgiveness of $10,000 to $20,000 in loan balances, has elicited predictable cries of outrage from Republicans. ‘A slap in the face to working Americans.’ — Description of Biden’s student debt …

‘The right thing to do’: Biden announces student debt relief for millions of borrowers
2 years, 7 months ago

‘The right thing to do’: Biden announces student debt relief for millions of borrowers

The Independent  

Sign up for the daily Inside Washington email for exclusive US coverage and analysis sent to your inbox Get our free Inside Washington email Get our free Inside Washington email SIGN UP I would like to be emailed about offers, events and updates from The Independent. Mr Biden said the federal government would resume collecting student loan payments on 1 …

Corporate America is so angry about Biden’s student loan cancellation. I wonder why
2 years, 7 months ago

Corporate America is so angry about Biden’s student loan cancellation. I wonder why

The Independent  

The best of Voices delivered to your inbox every week - from controversial columns to expert analysis Sign up for our free weekly Voices newsletter for expert opinion and columns Sign up to our free weekly Voices newsletter SIGN UP I would like to be emailed about offers, events and updates from The Independent. For the 45 million Americans still …

Biden will RESTART student loan payments in January
2 years, 7 months ago

Biden will RESTART student loan payments in January

Daily Mail  

Student loan payments will resume in January as President Joe Biden announced via Twitter on Wednesday the final pause extension – and said he will forgive $10,000 for those making less than $125,000. President Joe Biden announced his student loan forgiveness plans via Twitter on Wednesday – including $10,000-$20,000 in loan relief for individuals making less than $125,000 and joint …

Student loan help for millions coming from Biden after delay
2 years, 7 months ago

Student loan help for millions coming from Biden after delay

Associated Press  

WASHINGTON — President Joe Biden on Wednesday is set to announce his long-delayed move to forgive up to $10,000 in federal student loans for many Americans and extend a pause on payments to January, according to three people familiar with the plan. “President Biden’s decision on student debt cannot become the latest example of a policy that has left Black …

Obama top economic advisor Larry Summers predicts student loan relief will fuel even MORE inflation
2 years, 7 months ago

Obama top economic advisor Larry Summers predicts student loan relief will fuel even MORE inflation

Daily Mail  

Former top White House advisor Larry Summers warned the Biden administration against 'unreasonably generous' student loan relief and predicted it would further raise inflation. He also said that the 'worst idea' would be to continue the current moratorium on student loan payments, set to expire next week. 'I hope the Administration does not contribute to inflation macro economically by offering …

Column: Would forgiving student debt drive up inflation? Only if you’re using lousy math
2 years, 7 months ago

Column: Would forgiving student debt drive up inflation? Only if you’re using lousy math

LA Times  

Bernie Sanders and Elizabeth Warren ran against each other for the Democratic nomination for president in 2020, but were in agreement on the need to cancel student debt. The deficit hawks at the Committee for a Responsible Federal Budget, for example, fretted last week that forgiving even $10,000 in student debt per borrower would be so inflationary that it would …

‘I feel stuck’: Inside the growing US student debt crisis
2 years, 7 months ago

‘I feel stuck’: Inside the growing US student debt crisis

Al Jazeera  

With the pause on student loan payments expiring at end of August, will Joe Biden give borrowers a break and extend it? As the country’s student loan debt crisis deepens, borrowers, policymakers, and economists agree that something must be done – but what exact steps need to be taken remains up for debate. “Many of the people who were already …

Nearly $4 billion in federal student loan debt canceled for former ITT Tech students
2 years, 7 months ago

Nearly $4 billion in federal student loan debt canceled for former ITT Tech students

LA Times  

The ITT Technical Institute campus in Rancho Cordova, Calif., is closed in September 2016 after the school’s shutdown. Hundreds of thousands of students who took out federal student loans to attend ITT Tech as far back as 2005 will automatically have that debt canceled. Nearly $4 billion in student loan debt will be canceled for 208,000 former students of for-profit …

In a turbulent economy, here's how to weather the inflation storm
2 years, 8 months ago

In a turbulent economy, here's how to weather the inflation storm

NPR  

In a turbulent economy, here's how to weather the inflation storm Enlarge this image toggle caption Mark Lennihan/AP Mark Lennihan/AP Groceries, gasoline, rent and outstanding debts, inflation and painful price hikes have many Americans concerned about their financial present and future. "With costs of living rising, I think it's an appropriate conversation to have," De La Rosa said. An important …

Americans support student loan forgiveness, but would rather rein in college costs
2 years, 9 months ago

Americans support student loan forgiveness, but would rather rein in college costs

NPR  

Americans support student loan forgiveness, but would rather rein in college costs Enlarge this image toggle caption Stefani Reynolds/AFP via Getty Images Stefani Reynolds/AFP via Getty Images As President Biden inches toward an announcement on federal student loan forgiveness, a new NPR/Ipsos poll has found slightly more than half of Americans support what has been reported to be Biden's likeliest …

Interest on student loans is the 'latest blow' to new graduates
2 years, 10 months ago

Interest on student loans is the 'latest blow' to new graduates

Dutch News  

Student organisations are furious about a potential increase in the interest on loans students who graduate this year are likely to have to pay. The interest rate on student loans, based on the interest on state bonds, is agreed each year for a period of five years and covers the students who graduate that summer. ‘After the empty promises about …

Interest on student loans is the 'latest blow' to new graduates
2 years, 10 months ago

Interest on student loans is the 'latest blow' to new graduates

Dutch News  

Student organisations are furious about a potential increase in the interest on loans students who graduate this year are likely to have to pay. The interest rate on student loans, based on the interest on state bonds, is agreed each year for a period of five years and covers the students who graduate that summer. ‘After the empty promises about …

Student loan forgiveness: How will it affect the economy?
2 years, 10 months ago

Student loan forgiveness: How will it affect the economy?

LA Times  

Before deciding to cancel up to $10,000 of federal student loan debt, President Biden and his administration had been wrestling with the issue for months. They range from mega-loans for Harvard Business School degrees that yield Wall Street jobs with mega-salaries, to much smaller amounts borrowed to pay for vocational training that often proved almost worthless, if not an outright …

Some student loans are in line for relief. What’s happening and what you should do now
2 years, 11 months ago

Some student loans are in line for relief. What’s happening and what you should do now

LA Times  

Payments were set to resume May 1, but after calls from Democrats in Congress, the White House plans to give borrowers additional time. About 9 million borrowers are in IDR plans, representing about 30% of federal student loans, said Regan Fitzgerald, manager of Pew’s Project on Student Borrower Success. To address the recordkeeping issues, the Federal Student Aid office “will …

Feds: Thousands may have student debt that should be erased
2 years, 11 months ago

Feds: Thousands may have student debt that should be erased

Associated Press  

Record-keeping failures by the federal government may have left thousands of Americans saddled with student debt that should have been automatically canceled through a benefit for low-income borrowers, according to a new federal study. In a scathing report released on Wednesday, the Government Accountability Office faulted the Education Department for sloppy oversight of its income-driven repayment program — a collection …

Biden aims to expand access to stud-loan debt forgiveness for millions of people
2 years, 11 months ago

Biden aims to expand access to stud-loan debt forgiveness for millions of people

Live Mint  

The Biden administration said it plans to make it easier for lower-income student-loan borrowers to get debt forgiveness through an existing program that has enrolled millions of people, but provided few with relief. The changes would apply to an income-based program for repaying student loans, allowing around 3.6 million people—nearly 10% of all student-loan borrowers—to receive at least three years …

What happens when almost everyone with student loan debt stops paying, for years : Planet Money : NPR
2 years, 11 months ago

What happens when almost everyone with student loan debt stops paying, for years : Planet Money : NPR

NPR  

The student loan paaaaauuuuuse Enlarge this image Robyn Beck/AFP via Getty Images Robyn Beck/AFP via Getty Images In March 2020, the Trump administration paused student loan payments. They've been using the money they usually put toward student loans to do all kinds of things – pay off other debts, buy a car, even have a baby. On today's show, why …

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