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Biden's administration posted notices to withdraw its broader student-loan-forgiveness plans. Amid lawsuits, the Education Department wrote that it stands by the legality of its debt-relief plans.
The Education Department may also try, in the last month under Biden, to clear the loans of those experiencing financial hardship through a second rule also under OMB review, experts say.
This drive for a fresh batch of student debt relief comes shortly after Washington canceled another $4.9 billion in student loan debt for an additional 73,600 borrowers.
Student loan deferment is an agreement between the student and lender that the student may reduce or postpone repayment of a student loan for a designated period. [1] Deferment or forbearance [ 2 ] will prevent the loan from going into default , but may increase the overall cost of the loan. [ 3 ]
Even if Biden's SAVE student-loan repayment plan survives the courts, President-elect Donald Trump is unlikely to continue any debt relief efforts. Cheaper student-loan payments for millions of ...
In January 2020, the United States Bankruptcy Court for the Southern District of New York ruled that a debtor with more than $200,000 in student loan debt was entitled to an undue hardship discharge pursuant to 11 U.S.C. sec. 523(a)(8).
The federal government does not distribute aid directly to the student or the student's family; it goes through the college. Colleges use the student's federal student aid eligibility and combine it with state financial aid (if any) and their own aid to create a financial aid package for the student.
As part of the American Rescue Plan stimulus relief, there has been a moratorium, or pause, on student loan payments since March 27, 2020. Federal student loan interest rates have also been set to ...