Student loan defaults surging in wake of COVID-tied payments pause expiration
Defaults on student loans have surged across the United States, reaching record levels as borrowers struggle to keep up with payments.
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Defaults on student loans have surged across the United States, reaching record levels as borrowers struggle to keep up with payments.
Loan revamp affects how much students and families can borrow to pay for college, as well as their repayment options.
The Department of Education doesn't oversee school curriculums, but it does offer a range of services affecting millions of Americans.
Student loan payments for people enrolled in the Biden administration's SAVE plan will remain on hold for at least six more months.
About 1 in 10 people with student loans have gotten debt relief, according to the Biden administration.
As student loan repayments restart in October, the Biden administration said 125,000 people with student loans will have their debt erased.
After a three-year hiatus, interest on student loans begins piling up again on Friday, with payments due in October.
"We'll use every tool at our disposal to get you the student debt relief you need to reach your dreams," President Biden said.
The extension, up to June 30, 2023, will give the courts time to decide the fate of student loan cancellation.
This comes after the plan has been blocked by two separate federal court rulings.
In their appeal, attorneys for several Republican-led states said the plan will irreparably harm their states' student loan programs.
On Monday, the federal government officially launched its student loan forgiveness program. CBSLA's Joy Benedict speaks to those who have already signed up.
President Biden announces new college-debt forgiveness site, calling it a "game changer for millions of Americans."
Teachers and other public servants need to apply soon to ensure they are considered for a one-time waiver.
In partnership with California Attorney General Rob Bonta, the Campaign for California Borrowers' Rights on Monday launched a "California Student Debt Challenge," a statewide informational campaign on student loan forgiveness.
Interest rates will be 4.99% for undergraduate loans, 6.54% for graduate loans and 7.54% for PLUS loans for the 2022-2023 year.
A review found some servicers had been placing borrowers facing financial difficulties into forbearance instead of giving them clear information about income-driven repayment options.
Nearly 35,000 California students who attended Santa-Ana based Corinthian Colleges will not have to repay any the remaining balance of their private student loan debt.
The plan would cover not just tuition but also living expenses.
