Cancellation Checklist On August 24, 2022, President Biden announced a plan to cancel up to $20,000 in federal student loans to help borrowers recover from the pandemic as the payment pause ends. Under the plan, if you received a Pell grant to help pay for your education, and you earn less than $125,000 per year […]

Last month, the Department reversed a DeVos era notice which said that federal student loan servicers were not subject to state consumer protection laws. The Devos interpretation said that states’ laws that protect borrowers from servicers’ false and misleading practices were “preempted” by the Higher Education Act (HEA). Preemption is a legal doctrine in which […]

Today on this Tax Day, the National Consumer Law Center (NCLC) has released Voices of Despair: How Seizing the EITC Is Leaving Student Loan Borrowers Homeless and Hopeless During a Pandemic. The updated report builds on a 2018 NCLC report that compiled stories from dozens of borrowers recounting the hardship caused by the federal government’s […]

Today, new U.S. Department of Education (the Department) regulations will go into effect, erasing many of the protections students had against school fraud. These regulatory changes could not have come at a worse time. As students are trying to weather the economic instability caused by the coronavirus, the Department has given predatory schools the green […]

UPDATE (June 4, 2020): The Department of Education has provided more information about implementation of the CARES Act.  Updates are provided in the text below. **************************** On Friday, March 27th, the U.S. House of Representatives passed and the President signed into law the ‘‘Coronavirus Aid, Relief, and Economic Security Act’’ or the ‘‘CARES Act,’’ emergency […]

The COVID-19 pandemic is wreaking financial havoc on millions of student loan borrowers.  Debt cancellation is the best way to protect them now and ensure that they recover along with the economy.  Our work has taught us that low-income borrowers and borrowers of color were already struggling with unaffordable student debt and default before getting […]

As concerns continue to grow about the spread of the new coronavirus (COVID-19), policymakers must act to protect those who are most economically vulnerable and to empower them with the financial safety net needed to follow public health precautions.  One area where the federal government should act is in ensuring that the federal student loan […]

Student loan borrowers who apply to have their loans canceled due to their disability or the death of their child can worry about one less thing: possible tax consequences. When a borrower dies or becomes permanently disabled before paying off student loans, the loans can be discharged, relieving the disabled borrower or surviving family members […]

With nearly a quarter of federal student loan borrowers in default, borrowers need a system that will help them to successfully repay their loans. Unfortunately, the Department of Education continues to reward contractors that lie to borrowers and to incentivize programs that set borrowers up for failure. InsideARM reports that over the weekend, the Department […]

Many of the 44 million borrowers are struggling to repay their more than $1.4 trillion in student loan debt in the United States. The options for federal student loan borrowers can be good, but as the Consumer Financial Protection Bureau’s many reports and recent lawsuit against Navient demonstrate, accessing those options can be a confusing […]