Current student loan news for the week of May 24, 2021

In the ever-changing world of student loans, it is essential to stay abreast of current events and student loan rates. Below are this week’s student loan trends that could affect your loans – and your wallet.

2 current trends in student loans for the week of May 24, 2021

1. Cancellation of student loan is not included in the annual White House budget

The annual White House budget, which is expected at the end of this week, is unlikely to include student loan cancellation, reports the Washington post. While President Joe Biden has campaigned on a pledge to forgive $ 10,000 in federal student loan debt per borrower, the lack of student loan debt relief in the budget indicates that it is unlikely that it is implementing such a policy in the near future.

How it affects student loans

While canceling student loans through Congress is still possible, it will be a longer and more difficult process – and the proposed White House budget could indicate that Biden’s goal is currently elsewhere.

That said, his administration has taken other steps to help some borrowers achieve forgiveness, such as revising loan requirements. exit from total and permanent disability. Borrowers with federal student loans and FFEL loans in default can also take advantage of the payment and interest break until September 30, 2021, which could facilitate the repayment of these loans.

2. Former Education Secretary Betsy DeVos To Testify In Student Loan Forgiveness Trial

U.S. District Judge William Alsup ruled last week that former Education Secretary Betsy DeVos must be present for a three-hour statement regarding the Trump administration’s alleged malpractice over loan cancellation student. During this deposition, DeVos will answer questions under oath about his handling of the borrower’s defense against repayment demands during his tenure. A hearing is set for June 3.

The 160,000 or so borrowers who filed the class action claim they were swindled by their for-profit colleges and did not get the forgiveness promised by the federal government. defending the borrower to the repayment program by the Trump administration.

Under DeVos’ leadership, the Education Department reportedly stopped processing new applications for the federal program for 18 months from 2018 before rejecting most of the applications without explaining why. As a result, thousands of borrowers received only a partial discount or no discount at all.

How it affects student loans

The borrower’s defense against repayment has come under scrutiny in recent months. The rule promises to write off some or all of your student loan debt if the college you took out has engaged in deceptive practices. In March, US Secretary of Education Miguel Cardona announced revisions to the Trump administration’s version of the program to streamline the path to forgiveness. These revisions could continue in the coming months, especially if the class action is judged in favor of the borrowers.

Next steps

Whether you’re new to the student loan business or already in advanced repayment, it’s wise to stay on top of how your student loan rate could change. As 2021 continues, more opportunities for cheaper loans or loan cancellation may open up; keep an eye on Bankrate Student Loan News Center for the latest trends.

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