Biden administration plans to make sweeping changes to ‘broken’ student loan system

[1srelluc]

Well you can tell November is coming:

The Biden administration announced Wednesday it was moving to make sweeping changes to the federal student loan system, including making it easier for public servants to get debt forgiveness and setting new limits on the accrual of interest.

“We are committed to fixing a broken system,” U.S. Secretary of Education Miguel Cardona said, in a statement.
Key elements of the proposal include:

• Protections for defrauded borrowers: Under the proposed regulations, students who attended for-profit schools that lied or took advantage of them could be considered for debt cancellation as a group, meaning individuals wouldn’t be burdened to make their case alone. Defrauded borrowers would also be given more leeway around when they could file a claim for loan cancellation, and the definition of misconduct by schools would be expanded to include aggressive and deceptive recruitment practices. Many colleges could also be prohibited from requiring borrowers to sign mandatory predispute arbitration agreements or class-action waivers.
• An overhaul of the Public Service Loan Forgiveness Program: The policy allows for debt cancellation after 10 years for those who work for the government or specific nonprofits. Borrowers who were in certain types of forbearances or deferments could get those months counted toward their timeline to relief. Currently, these periods don’t qualify. Late payments would also no longer be excluded from a borrowers’ total qualifying payments.
• Changes to how interest accrues: The practice of interest capitalization on federal student loans, in which accrued interest is added to the principal balance, would also be eliminated in cases when a borrow exits a forbearance or defaults on their loan.

The public has 30 days to comment on the Education Department’s proposed regulations, and the final rules will go into effect no later than July 1, 2023.

As many as 40 million Americans could be impacted by the changes.

Biden administration plans to make sweeping changes to 'broken' student loan system

How the hell does the executive branch have that kind of power? I guess congress ceded it.

Reagan was right:

 

[JoeMoma]

Something needs to be down about the price gouging colleges do with tuition. One of the reasons tuition is so high is because of students being able to get the loans to pay.

That being said, students have been able to go to the community college in my town for free since Covid. I don't know how much longer that will last.

 

[1srelluc]

Something needs to be down about the price gouging colleges do with tuition. One of the reasons tuition is so high is because of students being able to get the loans to pay.

That being said, students have been able to go to the community college in my town for free since Covid. I don't know how much longer that will last.

Who's paying for that? Private grant or the taxpayer?

 

[TroglocratsRdumb]

If you think that College Education is expensive now, wait until it's free.
These short-sighted students will be paying half of their income on taxes when they join the work force.
The Greedy Corrupt Democrat Party treats the taxpayers like they are their slaves.

 

[JoeMoma]

Who's paying for that? Private grant or the taxpayer?

I don't know.

 

[1srelluc]

I don't know.

Fair enough.

I've seen business interests provide grants for certain subject matter before.

 

[JoeMoma]

Fair enough.

I've seen business interests provide grants for certain subject matter before.

As I said, I don't know who is paying. But if I had to guess I would say much of it is the Covid money from the Feds.

 

[1srelluc]

As I said, I don't know who is paying. But if I had to guess I would say much of it is the Covid money from the Feds.

Makes sense.

 

[Dekster]

Well you can tell November is coming:

The Biden administration announced Wednesday it was moving to make sweeping changes to the federal student loan system, including making it easier for public servants to get debt forgiveness and setting new limits on the accrual of interest.

“We are committed to fixing a broken system,” U.S. Secretary of Education Miguel Cardona said, in a statement.
Key elements of the proposal include:

• Protections for defrauded borrowers: Under the proposed regulations, students who attended for-profit schools that lied or took advantage of them could be considered for debt cancellation as a group, meaning individuals wouldn’t be burdened to make their case alone. Defrauded borrowers would also be given more leeway around when they could file a claim for loan cancellation, and the definition of misconduct by schools would be expanded to include aggressive and deceptive recruitment practices. Many colleges could also be prohibited from requiring borrowers to sign mandatory predispute arbitration agreements or class-action waivers.
• An overhaul of the Public Service Loan Forgiveness Program: The policy allows for debt cancellation after 10 years for those who work for the government or specific nonprofits. Borrowers who were in certain types of forbearances or deferments could get those months counted toward their timeline to relief. Currently, these periods don’t qualify. Late payments would also no longer be excluded from a borrowers’ total qualifying payments.
• Changes to how interest accrues: The practice of interest capitalization on federal student loans, in which accrued interest is added to the principal balance, would also be eliminated in cases when a borrow exits a forbearance or defaults on their loan.

The public has 30 days to comment on the Education Department’s proposed regulations, and the final rules will go into effect no later than July 1, 2023.

As many as 40 million Americans could be impacted by the changes.

Biden administration plans to make sweeping changes to 'broken' student loan system

How the hell does the executive branch have that kind of power? I guess congress ceded it.

Reagan was right:

Latest today is widespread speculation that another extension of the payment pause about to happen as the DOE has told servicers not to send out bills and notices which were supposed to start going out as soon as Monday.

 

[Oddball]

Something needs to be down about the price gouging colleges do with tuition. One of the reasons tuition is so high is because of students being able to get the loans to pay.

That being said, students have been able to go to the community college in my town for free since Covid. I don't know how much longer that will last.

The "price gouging" is the by-product of all the "free" loan money.

More available funds being fed into a system where the number of schools is the same, and what happens to prices?

 

[JWBooth]