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In the latest twist to the nation’s student debt crisis, the U.S. Department of Education has quietly suspended student loan forgiveness under the Income-Based Repayment (IBR) plan, Forbes reports. According to the outlet, the department confirmed earlier this month that it paused processing student loan discharges for IBR borrowers. This includes those who’ve already reached their 20- or 25-year forgiveness milestone. IBR Is Not Part of the Court Battle — So Why the Pause? IBR forgiveness is not affected by the current lawsuits challenging other federal student loan programs, though it does — like them — determine a borrower’s monthly payment based on that person’s income and family size. According to Forbes, last year, several Republican-led states sued the Biden administration to block the Saving on a Valuable Education (SAVE) plan, a newer income-driven repayment option. Federal courts responded by halting SAVE and forgiveness under two older plans, Income-Contingent Repayment...
President Donald Trump’s administration is moving to overhaul the Public Service Loan Forgiveness (PSLF) program. The proposed changes, according to ABC News, could block debt relief for thousands of public and nonprofit workers, including those who work for organizations supporting immigrant communities, transgender youth, and diversity and inclusion efforts. The Department of Education’s draft rule would allow officials to disqualify entire organizations from PSLF if they’re involved in so-called “illegal activities” the department has defined. Critics argue that the vague language used could become a political tool, particularly against groups focused on equity, identity, or civil rights. “That’s definitely an indicator for me that this is politically motivated and perhaps will be used as a tool for political punishment,” Betsy Mayotte, president of the Institute of Student Loan Advisors and reviewer of the rule, said in an interview with ABC News. What PSLF Was Designed To Do...
Editorial Note: Opinions and thoughts are the author’s own and not those of AFROTECH™. This week, former wrestling promoter and current Education Secretary Linda McMahon published an Op-Ed in the Wall Street Journal announcing the Trump administration’s plans to begin collecting on defaulted student loans. However, as we’re on the brink of experiencing a recession thanks to President Donald Trump’s trade war, this act runs the risk of contributing to an economic slowdown, according to ABC News. Beginning on May 5, around 5 million borrowers who have defaulted on their student loans will be sent to collections. When they are sent to collections, the federal government will seize federal tax refunds, even garnish wages and other forms of income to pay off the debt. Many borrowers cannot afford a student loan payment, which is why they defaulted in the first place. Federal loans also have high interest rates, which this current administration has shown no interest in lowering to...
President Donald Trump has laid off various staffers working at the Department of Education. As AFROTECH™ previously reported, President Trump had interest in dismantling the department. This would greatly reduce its role in the country’s education, which includes managing $1.6 trillion in federal student loan programs, overseeing K-12 school grants, and implementing civil rights law for federally funded schools. “This is an assault on every young American who went to public school like me,” Ro Khanna, U.S. representative from California’s 17th congressional district, said during a February news conference in San Jose, CA. “This is an assault on every American family who has someone who is disabled and needs the IDEA (The Individuals with Disabilities Education Act) program to provide education. This is an assault on every neighborhood in America that has a public school that gets Title 1 funding.” He continued, “This is an assault on every child who gets school lunches in America....
There has been a quick turn of events that will impact millions of borrowers. As AFROTECH™ previously reported, President Joe Biden’s student loan forgiveness plan was given the green light to be put into action on Oct. 2, 2024, by U.S. District Judge Randall Hall, who represents the Southern District of Georgia. NBC News reports the plan had been under a temporary restraining order that was a result of a lawsuit against Biden and Education Secretary Miguel Cardona. It was brought forward by the states of Alabama, Arkansas, Florida, Georgia, Missouri, North Dakota, and Ohio. Hall was willing to allow the temporary restraining order to expire, and this was based on his belief that the Southern District of Georgia order “failed to show an injury that is concrete, particularized, actual, or imminent.” “Without standing, the Court finds it proper to dismiss Georgia as a party to the suit for lack of subject matter jurisdiction and turns to Defendants’ arguments related to venue,” he...
Students and borrowers waiting on President Joe Biden’s student loan forgiveness plan may soon breathe a sigh of relief. According to NBC News, the president’s plan can move forward after a judge ruled Wednesday, Oct. 2, 2024, for a temporary restraining order against it to expire. U.S. District Judge Randall Hall, in his order from the Southern District of Georgia, said Georgia lacked standing to challenge the plan because it did not demonstrate any “concrete” or “imminent” injury. “Without standing, the Court finds it proper to dismiss Georgia as a party to the suit for lack of subject matter jurisdiction and turns to Defendants’ arguments related to venue,” he wrote, per NBC. Hall also concurred with the federal government’s stance that the venue was improper, stating that a plaintiff without standing cannot create a venue where it wouldn’t otherwise exist. He determined that the “most equitable result” would be to transfer the case to a district with the proper venue,...
North Carolina’s Fayetteville State University has landed a whopping donation set to support its students further. WTVD-11 reports that the HBCU received an anonymous donation of $750,000. The donation will aid Fayetteville State University’s free summer school called 30/60/90. The outlet details that the summer school program works to assist students with decreasing their student debt. What’s more, it focuses on students earning their degrees early. According to the summer school program’s website, the scholarship covers two courses or up to seven credit hours for undergraduate students, one course or up to three credit hours for graduate and doctoral students in the College of Education, book rental fees, other fees, and on-campus housing and meals. “The financial aid, they help me,” Deborah Cathcart, a rising sophomore student at Fayetteville State University, said per WTVD-11. She continued, “It helps me so much…this school, they introduce such an easy and just a practical way...
Far before Nia Long could fathom becoming a mother, she was putting in work to ensure that her future children would be able to live out their collegiate dreams. An actress best known for starring in cult classics like “Soul Food,” “The Best Man,” and “Love Jones,” Long is the mother of two sons, 23-year-old Massai Z. Dorsey II and 12-year-old Kez Sunday Udoka. During a fireside conversation hosted by Ally Financial during the 2024 American Black Film Festival, Long opened up about her journey to motherhood and how smart financial savings helped her put her eldest son through college without the help of any loans. At one point during the panel, “Money and Mindfulness: A Conversation with Nia Long,” the actress was asked what her values regarding her finances are. “One of the things is [that] I started saving for my children before I became a mother,” she recalled. “I took $3,000 and I just put [it] in this account. I was like, ‘I’m never touching that.’ And it allowed me to get my...
President Biden’s student loan forgiveness plan is back in the news — mostly because of how confusing it all seems to be. When AfroTech originally reported on the President’s plan, there was some intimation that it may favor higher-income parties. “Despite the $125,000 income cap, research shows the White House plan still slightly favors higher-income Americans: Analysis of a $10,000 blanket relief program published Tuesday by the Penn Wharton Budget Model found 69.79% of overall debt forgiveness would go to the top 60% of Americans by income, while individuals who make between $82,400 and $141,096—placing them between the 60th and 80th percentile—would receive the greatest share of overall forgiveness, at 28.1%, though the additional relief for Pell grant recipients should bring further benefit to lower-income borrowers,” read our report, according to a Forbes article about the matter. But, the reality of the student loan forgiveness plan is a lot more complicated than originally...
Five NAACP students will be leaving college debt-free, thanks to Pharell Williams. The iconic record producer and philanthropist kicked off his Something In the Water Festival in Washington D.C. on Friday, June 17. Just hours before the musical event began, Williams surprised the student leaders with the groundbreaking news during a panel pertaining to the Black student debt crisis at the St. Regis hotel in D.C, ABC 7 News reports. “For all of you on the stage, we are clearing your current student loan debt,” said a moderator during the event. Breaking: #SomethingInTheWater just announced they’re paying the student debt of all 6 panelists/NAACP members! #CancelStudentDebt pic.twitter.com/BqBS9AqIoc — NAACP (@NAACP) June 17, 2022