Cancel $ 10,000 in student loans due to Coronavirus

Joe Biden says it’s time to clear $ 10,000 of student loan debt for every American.

Here’s what you need to know.

Student loans

In the wake of the Coronavirus epidemic, the former vice president and presidential candidate of 2020 wants to help Americans manage their money, especially student loans. Biden tweeted Sunday, “In addition, we should forgive a minimum of $ 10,000 / person of federal student loans, as proposed by Senator Warren and colleagues. Young people and other student debt holders have borne the brunt of the latest crisis. It shouldn’t happen again. ” Biden refers to an economic aid plan proposed by Senators Chuck Schumer (D-NY), Patty Murray (D-WA), Sherrod Brown (D-OH) and Elizabeth Warren (D-MA) who would have:

  • forgive $ 10,000 of federal student loan debt for each borrower.
  • suspend student loan payments during the current coronavirus crisis; is
  • Suspend the attachment of wages, tax refunds and social security benefits to pay off student loans
  • Suspend all interest capitalization on student loans
  • Expand the president’s student loan interest waiver plan to FFEL loans, which are not federal student loans issued by the federal government

The plan, which requires congressional approval, would authorize the United States Department of Education, led by Secretary Betsy DeVos, to make monthly student loan payments on behalf of borrowers and forgive a minimum of $ 10,000 in student loans. for all borrowers. The plan comes against the background of borrowers seek how to pay off student loans faster and get answers to student loan questions up student loan repayment, student loan refinancing and forgiveness.

President Trump’s student loan plan

President Donald Trump has implemented several student loan aid plans following the Coronavirus epidemic. Trump has announced that it is waive interest on federal student loans. He also announced that you have an option for stop paying federal student loans for 60 days. can obtain a federal tolerance on student loans by contacting the student loan service. Alternatively, you can continue making federal student loan payments if you wish. Trump, however, does not support total student loan forgiveness. Last month, Trump called for an end to the public service loan forgiveness program in his annual budget. This does not mean that Trump does not support student loan forgiveness. Rather, Trump prefers to simplified income-based repayment plan which would offer forgiveness of student loan to borrowers. DeVos explained why he believes it is a good idea to do this forgiveness of the public service end student loan.

Forgiveness for student loan

Biden’s request for $ 10,000 student loan forgiveness is different from Warren’s original student loan forgiveness plan, what it would be cancel the student loan debt for more than 95% of the borrowers, and would completely cancel the student loan debt for more than 75% of Americans with student loan debt. Senator Bernie Sanders (I-VT) has he proposed to forgive all the $ 1.6 trillion student loan debt, including federal and private student loans. Biden has its own $ 750 billion student loan plan, focused on income-based reimbursement. Biden, Sanders and Warren all support the public service loan forgiveness program.

.

Forgive bankruptcy student loans

Joe Biden says that if he is elected president, student loans are forgiven in the event of bankruptcy.

Here’s what you need to know.

Student loans

Former Vice President Biden has said he will support Senator Elizabeth Warren’s plan to grant student loans in the event of bankruptcy. As a presidential candidate, Biden advocated bankruptcy student loans, although as a US senator, he opposed the student loan forgiveness in bankruptcy, such as when he voted for the Abuse Prevention Act. and consumer protection in 2005. In a virtual town hall in Illinois on Friday, Biden told voters that he would support Warren’s plan that Biden would also broaden his appeal to supporters of fellow presidential candidate Senator Bernie Sanders .

The Brunner test: financial difficulties

Traditionally, unlike mortgages or credit card debt, student loans cannot be liquidated in the event of bankruptcy. However, there are exceptions, particularly if certain conditions relating to financial difficulties occur. For example, a Navy veteran had $ 221,000 of student loans dumped in bankruptcy. These conditions are reflected in the Brunner test, which is the legal test in all fields of the circuit, except the eighth circuit and the 1st circuit. The eighth circuit uses a totality of circumstances, which is similar to Brunner, while the 1st circuit has yet to declare a standard.

Put simply, the Brunner the standard says:

  1. the borrower has mitigating circumstances that create difficulties;
  2. these circumstances are likely to continue for a term of the loan; is
  3. the borrower tried in good faith to repay the loan. (The borrower should not actually make payments, but simply attempt to make payments, such as trying to find a viable payment plan.)

Differences exist between federal districts, but this is the basic framework. To settle student loans in the event of bankruptcy, an adverse proceeding (a bankruptcy court case) must be filed, in which a debtor claims that paying the student loan would create undue suffering for the debtor.

Does this average biden support student loan forgiveness?

Unlike Sanders, who proposed to forgive all $ 1.6 trillion of student loan debt, Biden does not support the large-scale forgiveness of the student loan, but does have his own $ 750 billion student loan plan. Biden and Sanders both support the public service loan forgiveness program. Instead, President Donald Trump has called for an end to the public service loan forgiveness program in his annual budget for a simplified income-based repayment plan.

What can you do if you are struggling to make student loan payments?

If you are struggling to make student loan payments, the good news is that you have several options. Trump has temporarily waived interest payments on federal student loans to help borrowers who will be financially affected by the coronavirus.

Here are some steps:

1. Income-led reimbursement: For federal student loans, consider an income based repayment plan such as IBR, PAYE or REPAYE. Payment is based on discretionary income, family size and other factors, and you can receive student loan forgiveness after 20 or 25 years.

2. Payment of other debts: Pay off credit card debt first (particularly if the interest rate is higher than the student loan interest rate). Credit card consolidation is the process of paying off existing debt with a fixed rate credit card at a lower interest rate.

3. Contact your lender: If you are struggling financially because of coronavius ​​or something else, contact your lender to discuss alternative payment options. Don’t wait until the last minute to face your student loan debt.

4. Funding for refinancing students: Student loan refinancing rates are incredibly cheap right now and start at 1.9%. The Federal Reserve cut rates again yesterday (the second time this month), which has led to student loan refinancing rates falling to near-historic lows. To qualify, you will need a credit score of at least 650 and sufficient monthly income for living expenses and debt repayment. If you do not meet these requirements, contact a dealer for approval and to obtain a lower interest rate.

This student loan refinancing calculator shows how much you can save with student loan refinancing.

.

Here’s how my new student loan plan works

President Donald Trump waives interest payments on student loans.

Here’s what you need to know and how it works.

New student loan plan

Trump made a surprise announcement from the White House yesterday: he will waive interest payments on federal student loans. So what does this mean and how does it work? Although the full details have not been released, here is the latest:

  1. No interest payments will be made on federal student loans temporarily.
  2. This only applies to federal student loans, not private student loans.
  3. Interest waiver applies only to “student loans held by federal government agencies”. Therefore, some federal student loans may not be eligible.
  4. The waiver applies only to interest payments, not to the main payments.
  5. The waiver of interest will be effective “until further notice”.
  6. It is not necessary to register for an interest rebate. Interest should be automatically canceled.
  7. You still need to pay off student loans. A waiver of interest does not mean “no student loan payment”.
  8. Interest waivers could start as early as a week.
  9. Borrowers who are enrolled in an income-oriented repayment plan such as IBR, PAYE, REPAYE or ICR, for example, or tolerance for federal student loans are eligible.
  10. There is no indication of any interest limit, so borrowers with high-level federal student loans could potentially save more.

Importantly, waiving interest does not mean forgiving the student loan. This is not the student loan forgiveness plan proposed by Vice President Joe Biden or Senator Bernie Sanders. The balance of the federal student loan will not be exempted. That is why it is essential to continue paying student loans and not skip a payment during this interest exemption period. While Trump called for an end to the public service loan forgiveness program for several reasons in his annual budget, Trump also proposed a simplified income-based repayment plan that would offer forgiveness of the student loan.

The waiver of interest rates also comes through an aggressive rate cut by the Federal Reserve, which unexpectedly cut rates by 50 basis points earlier this month. The rate cut, supported by Trump, lowered mortgage rates to record levels and lowered student loan refinancing rates back to 1.89%.

.

That’s why we want to end the student loan forgiveness program

Education secretary Betsy DeVos repeated President Trump’s request to end this popular student loan forgiveness program.

Here’s what you need to know.

Forgiveness for student loan

DeVos was on Capitol Hill this week to discuss, among other topics, the president’s annual education budget. Trump’s new annual budget requires several changes to student loans, which are part of a $ 5.6 billion cut in funding from the United States Department of Education. As in previous years, Trump repeated his call to end the forgiveness of the public service loan.

The Public Service Loan Forgiveness Program is a federal program created in 2007 by President George W. Bush that forgives federal student loans for borrowers who work full time (more than 30 hours per week) in a federal, state public service. o eligible local job o 501 (c) (3) nonprofit job making 120 eligible payments in ten years. The program is intended for public officials such as members of the United States military, police officers, firefighters, first responders, prosecutors, public defenders and other public officials.

Why end the forgiveness of the public service student loan?

“The administration believes there is no need to incentivize one type of job and one type of job over another,” DeVos said this week during a hearing in the United States Senate. “And we have a demand in our over 7 million jobs that are not currently employed, and philosophically favoring one type of research over another type of research doesn’t align with our position.” In addition, DeVos said it wanted to balance the needs of both student loan borrowers and federal taxpayers. By eliminating this student loan forgiveness program, DeVos argues, it would save money on the federal government from not having to potentially forgive billions of dollars in federal student loans.

Bernie Sanders: cancels all student loans

The proposal to end this student loan forgiveness program differs drastically from several presidential candidates, including Senator Bernie Sanders (I-VT). Sanders wants to forgive all of the $ 1.6 trillion of outstanding student loans, including federal and private student loan payables. Sanders’ student loan forgiveness plan has no eligibility requirements; all 45 million student loan borrowers are eligible for student loan. Sanders says forgiving the student loan will make the economy grow by $ 1 trillion over the next 10 years and create up to 1.5 million new jobs every year. (Moody believes that the economic impact would be more contained). Former Vice President Joe Biden does not support the cancellation of all $ 1.6 trillion student loan debt and the charging of federal taxpayers. Biden detailed his student loan plan and why he believes his plan is better than the Sanders plan.

Silver lining: what Trump and DeVos offer

Importantly, Trump does not propose to eliminate all student loan forgiveness. Rather, it proposes to end the public service loan forgiveness program. Importantly, the proposal would have an impact on future borrowers who borrow federal student loans as of July 1, 2021. The budget proposal does not provide for existing borrowers who are already working in the public service and are currently paying student loans.

Here is what Trump proposes instead:

  • Simplify the repayment of the student loan: Reduce the number of student loan repayment plans to simplify the student loan repayment and help borrowers repay student loans more quickly. Federal student loan repayment plans can help you reduce your monthly payment (even if interest accrues on your balance), but don’t expect to get a lower interest rate on student loans.
  • Change in student loan forgiveness: Through an income-based repayment plan, federal student loans for college borrowers would be forgiven after 15 years of student loan payments. Currently, federal student loan forgiveness can be received after 20 years (bachelor’s degree) or 25 years (graduate school) under existing income-based repayment plans. Borrowers are likely to still have to pay income taxes for the forgiven amount.

Your next steps

It is important to remember this: Congress decides federal spending and then decides whether to finance or repay a federal program such as forgiving public service loans. In the meantime, act on the student loan repayment. Get started with these four options, all at no cost:

.

Michigan for illicit behavior supports Ohio’s medical case of the mirror

ANN ARBOR, Mich. – When the University of Michigan announced last week that allegations of 10-year sexual behavior by a sports doctor were under investigation, former wrestler Mike DiSabato was stunned by the parallels to an abuse scandal in his alma mater, in the state of Ohio.

The accusations of several people against Dr. Robert E. Anderson of Michigan immediately brought to mind the claims of DiSabato and hundreds of other men who introduced Dr. Richard Strauss to Ohio State. The two cases had striking similarities. Two doctors, both dead for years, are now accused of using their position to abuse male athletes and students.

Both men worked in athletics and student health, were appreciated for long periods and, at some point, focused on researching or treating genital disorders.

“It’s incredible, but absolutely credible,” DiSabato said in an interview with The Associated Press.

Former athletes said both doctors performed inappropriate or unnecessary tests. They said that some athletes joked and warned each other about the behavior, but they did not challenge him because they were embarrassed, uncertain about the medical need or unwilling to risk jeopardizing their place on a team. They remembered nicknames for doctors like “Dr. Jelly Paws” and “Dr. Drop your drawers.”

Former patients said they made the coaches or other officials aware of the concerns decades ago and didn’t get anywhere. Investigators claimed that both men were examined by state regulators in the mid-1990s, but the cases have been closed.

The accusations against Strauss and Anderson were brought to the attention of university officials by former wrestlers a few months later in 2018, but the resulting investigations and responses followed different timelines.

Ohio state initiated a school-funded investigation from a law firm in April 2018. Investigators concluded last year that Strauss sexually abused young men for nearly two decades, starting in the late years. ‘ 70, and that school officials failed to stop him. The university apologized and promised a “monetary resolution”, although federal lawsuits against the school remain unstable after months of mediation.

University of Michigan officials reported that campus police started investigating Anderson after a former wrestler notified the athletic director in July 2018 that he had been stroked during medical exams in the 1970s and told the his coach back then. After local prosecutors reviewed the investigation and found that criminal charges could not be authorized, the school announced Wednesday that an external investigation was underway by a law firm.

Those investigators are likely to encounter obstacles similar to those of the Ohio state investigation. Many years have passed. Memories are faded. The records may have been deleted and some employees or others with relevant knowledge may have died.

The president of the University of Michigan apologized on Thursday to “anyone who has been harmed” by Anderson.

While no one publicly defended Strauss, The Detroit News cited Anderson’s children who rejected the charges against his father. In a police report, former Michigan football coach Lloyd Carr was among respondents who claimed they hadn’t seen or heard of Anderson’s inappropriate behavior.

Meanwhile, some of Anderson’s prosecutors are investigating potential lawsuits, including Olympic wrestler Andy Hrovat, the first athlete to make public accusations for being mistreated by the doctor.

“It is clear that Andy has a complaint,” said attorney Michael Nimmo, part of the Denver-based law firm representing Hrovat. “There are federal and state laws that will protect him and all student-athletes who were in the same situation he was in regarding providing a safe environment for passing medical exams. We will examine it to the fullest. “

Another lawyer, John Manly, said that former Michigan athletes who report Anderson’s misconduct also contacted his company. Manly represented more than 200 victims in the abuse cases that led to ex-gymnastics doctor Larry Nassar’s prison and a $ 500 million deal by the state of Michigan.

MSU has abandoned a plan to investigate Nassar’s complaint handling and release a public report, upsetting the survivors who urged the new school president to re-launch the investigation.

Mishandling of Nassar’s complaints in the state of Michigan led to a federal fine of $ 4.5 million in September and a statement by Secretary of Education Betsy DeVos that such behavior “should not be repeated, there or elsewhere”.

The DeVos department is also investigating whether the state of Ohio properly handled the news about Strauss. The agency would not confirm Friday if it has any investigation into Michigan and Anderson.

Universities dealing with these allegations face growing concerns about institutional trust after investigating misconduct in other schools and throughout the Catholic Church and boy scouts, said Peter McDonough, vice president and general counsel of the American Council on Education. .

“The public tends to perceive that the first step is to understand how to defend yourself as an institution or an individual,” said McDonough. “Higher institutions are not primarily concerned with defending these situations. It’s about figuring out what happened, or at least it should be. “

___

Franko reported from Columbus, Ohio. Associate press authors Mike Householder of Ann Arbor, David Eggert of Lansing and Reese Dunklin of Dallas contributed to this report.

Copyright 2020 The Associated Press. All rights reserved. This material cannot be published, transmitted, rewritten or redistributed without authorization.

.