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July's Federal Student-Loan Overhaul: RAP Debuts, Caps Tighten, PSLF Rules Shift
politics25 days ago

July's Federal Student-Loan Overhaul: RAP Debuts, Caps Tighten, PSLF Rules Shift

Starting July 1, the federal student-loan system undergoes a sweeping overhaul: a new Repayment Assistance Plan (RAP) will consolidate income-driven options with payments roughly 1%–10% of income and forgiveness after 30 years; the Biden-era SAVE plan ends, with about 7 million borrowers transitioning to new plans and many seeing higher monthly payments; legacy plans like PAYE and ICR will be phased out by 2028; new borrowing caps tighten Parent PLUS and Grad loans, Grad PLUS for new borrowers ends, and PSLF criteria are updated; there’s also a 1% auto-pay interest-rate reduction through 2028. Borrowers will receive 90-day notices and must act to choose a plan or risk automatic placement into a standard plan with fewer benefits.

via Yahoo|
#federal-student-loans#politics#pslf
New era in US student loans as repayment rules tighten from July 1
business1 month ago

New era in US student loans as repayment rules tighten from July 1

The US is overhauling its federal student-loan repayment system: the Save plan ends July 1 after a court ruling, forcing borrowers to pick a new plan within 90 days; existing loans can use IBR, PAYE, or ICR or be moved to fixed plans, though most of these will tighten forgiveness and be phased out by 2028. New borrowers will get RAP and a tiered standard plan, while fixed plans often require higher payments, signaling a shift toward less forgiving terms and sparking concern among graduates.

via The Guardian|
#business#debt-repayment#federal-student-loan
7 Million SAVE Borrowers Face Higher Payments Under New Repayment Rules
education1 month ago

7 Million SAVE Borrowers Face Higher Payments Under New Repayment Rules

Starting July 1, the Education Department will warn borrowers on the SAVE income-driven plan to switch to a different repayment option. If they don’t act within 90 days, they’ll be automatically placed in either the standard or the new tiered standard plan, both generally more expensive than current income-driven options. The tiered standard plan would require paying off the principal over a set term with a $50 minimum monthly payment, while the Repayment Assistance Plan (RAP) would base payments on adjusted gross income and is also costlier than existing options. Lawmakers are urging automatic enrollment in the cheapest available plan, while the changes coincide with broader provisions from a recent spending bill that affect borrowing limits for advanced degrees and parental loans.

via Business Insider|
#education#education-policy#rap
July 1 Launch for Trump's Student-Loan Overhaul Brings New Plans and Caps
education1 month ago

July 1 Launch for Trump's Student-Loan Overhaul Brings New Plans and Caps

On July 1, the sweeping student-loan overhaul is set to take effect, introducing two new repayment plans—Repayment Assistance Plan (RAP) and a tiered standard plan—while phasing out the SAVE plan. RAP ties monthly payments to income (1%–10% of AGI) with 30-year forgiveness, and the tiered plan bases terms on loan principal with a $50 minimum monthly payment; borrowers who took out loans after July 1 will only have RAP or the tiered option. The SAVE plan is ending, forcing about 7 million borrowers to transition within 90 days or be auto-placed on a standard or tiered plan. New lifetime borrowing caps are set at $100,000 for graduate students and $200,000 for professionals (11 programs max), with a $65,000 cap per child for Parent PLUS. Critics warn higher monthly bills for some and potential shifts to riskier private loans, and lawsuits over the policy continue.

via Business Insider|
#borrowing-caps#education#rap
Hundreds of Borrowers Grapple with Higher Payments as SAVE Ends and PSLF Uncertainty Looms
education6 months ago

Hundreds of Borrowers Grapple with Higher Payments as SAVE Ends and PSLF Uncertainty Looms

Business Insider gathered responses from more than 400 student-loan borrowers about repayment and relief experiences amid sweeping changes to federal programs, including the elimination of the SAVE plan, new repayment rules, and PSLF uncertainty. Many fear higher monthly bills, potential wage garnishments for defaults, and difficulty getting help from servicers, even as a subset reported forgiveness or progress toward forgiveness.

via Business Insider|
#debt-relief#education#pslf
"Millions in Student Loans Forgiven: Are You Eligible for Relief?"
education2 years ago

"Millions in Student Loans Forgiven: Are You Eligible for Relief?"

The Biden Administration has initiated the forgiveness of $60 million in student loans for over 7,500 Ohioans enrolled in the income-driven SAVE plan, with more borrowers across the country expected to benefit from the $1.2 billion forgiveness program. Eligible borrowers must be enrolled in the SAVE plan, have made at least 10 years of payments, and originally taken out less than $12,000 in loans. The plan, designed for low- and middle-income borrowers, sets monthly payments based on discretionary income and has recently expanded to provide relief for more individuals.

via NBC4 WCMH-TV|
#biden-administration#education#loan-forgiveness
"Biden Administration Forgives $1.2 Billion in Student Loans for 153,000 Borrowers"
politics2 years ago

"Biden Administration Forgives $1.2 Billion in Student Loans for 153,000 Borrowers"

President Joe Biden will announce $1.2 billion of student debt relief for nearly 153,000 borrowers and will send emails to ensure they know about it. The relief covers borrowers enrolled in Biden’s new loan repayment program, who initially borrowed $12,000 or less and have been repaying their debt for at least 10 years. The administration has approved loan discharges totaling nearly $138 billion for nearly 3.9 million borrowers through various administrative actions. The latest tranche of loan forgiveness is part of Biden’s new loan repayment program, known as the SAVE plan, which offers lower monthly payments based on borrowers’ income and an easier path to debt cancellation after years of payments.

via POLITICO|
#education#joe-biden#loan-forgiveness
"Supreme Court Reviews Biden's 'Good Neighbor' Air Pollution Rule"
environment-education-legal-health-technology2 years ago

"Supreme Court Reviews Biden's 'Good Neighbor' Air Pollution Rule"

The U.S. Supreme Court is set to hear a challenge to the EPA's "good neighbor" provision aimed at reducing smog and air pollution, while Alabama fertility clinics face uncertainty after a state Supreme Court ruling on frozen embryos. The Education Department has wiped out student loan balances for nearly 153,000 borrowers under the new SAVE plan, and a photo project highlights the experiences of Ukrainian caretakers in Italy. Health experts offer advice on maintaining muscle strength, and Australian scientists have discovered the fastest-growing black hole ever recorded, while tech startups are developing AI agents to complete everyday tasks.

via NPR|
#environment-education-legal-health-technology#epa-rule#muscle-strength
"Biden Administration's Early Student Loan Debt Cancellation Benefits Over 150,000 Borrowers"
education2 years ago

"Biden Administration's Early Student Loan Debt Cancellation Benefits Over 150,000 Borrowers"

President Biden has announced the approval of $1.2 billion in student debt cancellation for almost 153,000 borrowers enrolled in the SAVE repayment plan, ahead of schedule. This brings the total student debt cancellation under the Biden-Harris Administration to nearly $138 billion for almost 3.9 million borrowers. The SAVE plan provides debt forgiveness to borrowers who have been in repayment for as little as 10 years and took out $12,000 or less in student loans. The administration is also making efforts to enroll more borrowers in the SAVE plan and has taken historic steps to improve the student loan program and make higher education more affordable for more Americans.

via The White House|
#biden-administration#education#loan-forgiveness
"Biden Expedites Student Loan Forgiveness for Select Borrowers"
finance2 years ago

"Biden Expedites Student Loan Forgiveness for Select Borrowers"

President Biden announced that student borrowers who took out less than $12,000 in loans and have been in repayment for 10 years could have their remaining loan balance canceled immediately starting in February, as part of the new Saving on a Valuable Education (SAVE) plan. This plan aims to provide debt relief to community college borrowers, low-income borrowers, and those struggling to repay their loans, and links repayments to income, potentially lowering monthly payments to $0 for some borrowers. About 6.9 million borrowers are enrolled in the new plan, with approximately 3.9 million having monthly payments of $0.

via CBS News|
#biden-administration#debt-forgiveness#finance
"Biden's Early Student Loan Forgiveness Plan Accelerates Debt Relief"
education2 years ago

"Biden's Early Student Loan Forgiveness Plan Accelerates Debt Relief"

The Biden administration is fast-tracking a plan to erase the debts of federal student loan borrowers who initially borrowed less than $21,000, with debts automatically erased in February for those who borrowed $12,000 or less and have been in repayment for at least 10 years, as long as they enroll in the new income-based repayment plan known as SAVE. The plan exempts more of a borrower's income from the monthly payment math than previous plans and promises multiple windows for loan forgiveness, drawing criticism from House Republicans while President Biden vows to veto any bill to kill the plan.

via NPR|
#biden-administration#education#education-department
"Biden Expedites Student Loan Forgiveness for Select Borrowers"
education2 years ago

"Biden Expedites Student Loan Forgiveness for Select Borrowers"

The Biden administration has announced plans to forgive the student loans of borrowers who have been in repayment for a decade or more and originally took out $12,000 or less, with the relief expected to start next month for those enrolled in the new Saving on a Valuable Education (SAVE) plan. The U.S. Department of Education is launching an outreach campaign to encourage eligible borrowers to sign up for the SAVE plan, aiming to provide faster debt relief for struggling borrowers, particularly those with smaller loans, who have been making payments for years.

via CNBC|
#biden-administration#department-of-education#education