Here's everything borrowers need to know before they get hit with a student-loan bill this fall. Borrowers who can make payments should."Īlong with the on-ramp period, Cardona also said his department has finalized a new income-driven repayment plan for borrowers. "This means although interest will accrue starting September 1st and payments are due starting in October, we'll help borrowers who are struggling to make payments avoid harsh financial consequences, such as delinquencies and wage garnishments. "We're creating an on-ramp for repayment for up to one year for those who need it," Cardona said during a Friday press briefing. But Cardona announced a plan to ease that process, as well. That process could take a lot longer than Biden's first debt relief proposal, meaning borrowers will have to resume payments in October without any reduction to their balances. He announced just hours after the high court's decision that Education Secretary Miguel Cardona has started the process of using the Higher Education Act of 1965, which allows the secretary to waive or compromise student loans without the reliance on a national emergency. By a 6-3 ruling, the high court ruled that the president overreached his authority by using the HEROES Act of 2003 to enact the debt relief, which allows the Education Secretary to waive or modify student-loan balances in connection with a national emergency.īut Biden is trying again. Last week, the Supreme Court struck down President Joe Biden's plan to cancel up to $20,000 in student debt for federal borrowers. Student-loan borrowers are not getting broad debt cancellation anytime soon - and they still have to resume payments in just a few months. Account icon An icon in the shape of a person's head and shoulders.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |