As of my knowledge cutoff in September 2021, here is some general information about student loans. Please note that specific news or updates may have occurred since then, and it’s always a good idea to check reliable sources for the most recent information.
- Federal Student Loan Interest Freeze: In response to the COVID-19 pandemic, the U.S. Department of Education implemented an interest freeze on federal student loans. This freeze, which began in March 2020, has temporarily set the interest rate on federal student loans to 0% and suspended monthly payments. Be sure to check for updates on whether this freeze has been extended or if there have been any changes to the policy.
- Student Loan Forgiveness Programs: Discussions and proposals for student loan forgiveness have been ongoing. The details and potential extent of any future loan forgiveness programs can vary widely depending on political and legislative developments. It’s important to stay informed about any updates or changes to these programs through reliable news sources.
- Repayment Plans and Options: The U.S. Department of Education offers various repayment plans for federal student loans, including income-driven repayment plans that base monthly payments on your income and family size. It’s essential to understand your repayment options and consider what works best for your financial situation. You can contact your loan servicer or visit the Federal Student Aid website for more information.
- State and Private Loan News: While federal student loans receive significant attention, it’s important to note that individual states and private lenders may have their own loan programs and policies. Keeping up with any news or updates specific to state-based or private student loans is essential if you have borrowed through those channels.
To stay informed about the latest student loan news, I recommend regularly checking reliable news sources, visiting the U.S. Department of Education’s official website, and following updates from relevant government agencies. Additionally, you can consider reaching out to your loan servicer or financial aid office for specific information about your loans.
Here are some of the latest student loan news headlines for July 2023:
- Education Department Approves $5.8 Billion Group Discharge to Cancel All Remaining Loans for 560,000 Borrowers Who Attended Corinthian Colleges
- Biden Administration Announces New Public Service Loan Forgiveness Waiver to Help More Borrowers Qualify for Forgiveness
- Student Loan Borrowers Can Now Refinance Their Loans Through the Federal Government
- New Law Requires Colleges to Provide More Transparency About Student Loan Debt
- Student Loan Debt Continues to Grow, But Delinquency Rates Are Falling
Here are some more details about each of these headlines:
- Education Department Approves $5.8 Billion Group Discharge to Cancel All Remaining Loans for 560,000 Borrowers Who Attended Corinthian Colleges
The U.S. Department of Education has approved a $5.8 billion group discharge to cancel all remaining loans for 560,000 borrowers who attended Corinthian Colleges. The borrowers attended one of Corinthian’s 13 schools, which were closed by the federal government in 2015 for defrauding students. The discharge will wipe out the borrowers’ loans, including any accrued interest and fees.
- Biden Administration Announces New Public Service Loan Forgiveness Waiver to Help More Borrowers Qualify for Forgiveness
The Biden administration has announced a new public service loan forgiveness (PSLF) waiver that will make it easier for more borrowers to qualify for loan forgiveness. The waiver eliminates a number of restrictions that had previously made it difficult for borrowers to qualify for PSLF, such as the requirement that borrowers work full-time for a qualifying employer. The waiver will be in effect for borrowers who have loans that were first disbursed on or before October 31, 2022.
Also Read: Introducing Homeworkify: Revolutionizing the Way Students Study
- Student Loan Borrowers Can Now Refinance Their Loans Through the Federal Government
The U.S. Department of Education has launched a new program that allows student loan borrowers to refinance their loans through the federal government. The program called the Federal Student Loan Refinance Program, offers borrowers lower interest rates than they may be able to get through private lenders. Borrowers eligible for the program must have a credit score of at least 660 and a debt-to-income ratio of no more than 50%.
- New Law Requires Colleges to Provide More Transparency About Student Loan Debt
A new law that went into effect on July 1, 2023, requires colleges to provide more transparency about student loan debt. The law, called the Gainful Employment Rule, requires colleges to disclose the average debt-to-earnings ratio of their graduates six years after they leave school. The rule is designed to help students make informed decisions about which colleges to attend.
- Student Loan Debt Continues to Grow, But Delinquency Rates Are Falling
The total amount of student loan debt in the United States continues to grow, but the delinquency rate on student loans is falling. According to the Federal Reserve, the total amount of student loan debt outstanding was $1.75 trillion in the first quarter of 2023. This is an increase of 10.8% from the first quarter of 2022. However, the delinquency rate on student loans fell to 2.0% in the first quarter of 2023, down from 2.3% in the first quarter of 2022.
These are just a few of the latest headlines in student loan news. For more information, please visit the U.S. Department of Education websites and the Consumer Financial Protection Bureau.
