The Department of Education says it will resume collections on May 5 and send wage garnishment notices "later this summer." Here's how to know — and what to do — if you'll be affected.
The Education Department says millions of borrowers in default will have a chance to make a payment or sign up for a repayment plan. But on May 5, those who don't will be referred for collection.
According to the Consumer Financial Protection Bureau, $100 million will be used to make payments to impacted borrowers in a settlement with the former servicer of student loans.
The rulings from Kansas and Missouri federal judges put on hold the federal government helping many of the intended borrowers ease their loan repayment burdens starting July 1.
President Biden announced the relief for attendees of the now-shuttered art schools, saying they "falsified data, knowingly misled students, and cheated borrowers into taking on mountains of debt."
Because of past administrative failures, the some 78,000 affected public service workers such as nurses and teachers never got the relief they were entitled to under the law, Biden said.
"It's moral hazard if you're only doing debt relief, but I believe we're balancing it out with accountability on colleges," says Education Secretary Miguel Cardona.
The Supreme Court may have struck down a sweeping plan for student loan debt forgiveness, but under President Biden's new income-driven repayment plan, SAVE, borrowers stand to pay thousands less.
With President Biden pledging a veto, the resolution amounts to a mostly symbolic show of congressional disapproval on a plan to cancel up to $20,000 in federal student loan debt.
If it passes, the proposed debt deal would set the date for federal student loan repayments to resume. The pause's end will affect some 43 million borrowers, but, in effect, it's not a big change.
White House officials have released official numbers on how many students have applied and been approved for student loan forgiveness — including data on Georgia borrowers.
Nearly 22 million people — more than half of qualifying borrowers — have signed up. The Biden administration says it is continuing to accept and review applications during the temporary hold.
President Biden's plan to forgive hundreds of billions of dollars in student debt will help millions – but it's also raising concerns about inflation, economic fairness and college tuition costs.
Students affected do not have to take any further action to secure their funds, and the Department of Education will begin notifying those students soon, the agency said.
