Tag: loan

Democrats unveil plan to erase $50,000 of student loan debt

A group of progressive Democrats announced a resolution on Thursday that demands President Biden use executive action to cancel $50,000 in federal student loan debt. The measure is unlikely to succeed given Mr. Biden’s more moderate campaign promise of up to $10,000 in debt forgiveness via Congressional action.

The resolution was introduced in a press conference by Senate Majority Leader Chuck Schumer, Senator Elizabeth Warren, and Representatives Mondaire Jones of New York, Ayanna Pressley of Massachusetts, Ilhan Omar of Minnesota, and Alma Adams of North Carolina. The coalition of progressive Democrats argue the Higher Education Act of 1965 gives

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Education Dept. orders Navient to refund $22.3 million in decade-old student loan scandal

Investigators recommended in 2013 that the department have Sallie Mae return the estimated $22.3 million owed, but the company denied any wrongdoing. Navient, which assumed Sallie Mae’s liabilities when the companies parted ways, continued to fight the audit and appealed to the Trump administration.

Zais, who took over when Education Secretary Betsy DeVos resigned last month, has held the company liable to repay the money.

Navient spokesman Paul Hartwick said the company is assessing its options in the wake of the decision.

“We are disappointed with this ruling because we believe these practices were consistent with Department of Education guidance,

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Department of Education freezes student loan payments through September

At the request of President Joe Biden, the Department of Education on Thursday extended the already nearly yearlong pause on student loan payments through September, allowing the new administration to begin delivering on its campaign promise to prioritize and begin addressing the more than $1.5 trillion debt crisis.

Requesting the department issue a forbearance extension on federal student loans was among 17 executive actions Mr. Biden signed on his first day in office Wednesday evening. Many, including his action on student debt and and an extension on eviction and foreclosure moratoriums, are aimed at relieving Americans from economic burdens worsened

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Biden directs Department of Education to extend student loan payment freeze

In one of his first actions as president, Joe Biden on Wednesday directed the Department of Education to extend the nearly year long pause on student loan payments through September 30, delivering on the new administration’s campaign promise to prioritize and begin addressing the nearly $1.6 trillion debt crisis.

Requesting a forbearance extension on federal student loans was among 17 executive actions Mr. Biden signed on his first day in office. Many, including his action on student debt and and an extension on eviction and foreclosure moratoriums, are aimed at relieving Americans from economic burdens worsened by the coronavirus pandemic. 

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Trump administration tries to hamstring Biden on student loan forgiveness

The Trump administration on Wednesday sought to throw up a bureaucratic roadblock to progressives’ push for the incoming Biden administration to cancel large swaths of outstanding student loan debt through executive action.

Education Department officials released a memo, signed by an outgoing political appointee, that concludes that the agency lacks the power to unilaterally forgive federal student loan debt on the scale that some Democrats want.

The eight-page memo says that “the Secretary does not have statutory authority to provide blanket or mass cancellation, compromise, discharge, or forgiveness of student loan principal balances, and/or to materially modify the repayment amounts

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