Category Archives: Student Loan Legislation

REPAYE: what it means for you

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In June of 2014 President Obama put through an executive order that would allow those who qualify for the 15% version (IBR) of the income driven plans to now qualify for the 10% Pay As You Earn program (PAYE) plan regardless of when you took out your loans. In short, this means that about 5 million borrowers who are presently in the 15% IBR program will have the opportunity to lower their payment by approximately 33% under the 10% version Continue reading

July 1st 2015 means new Student Loan Interest Rates

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  Heads up everyone: The new interest rates on federal student loans are here. And fortunately, this year, they’re just a little bit cheaper. The 2015-2016 federal student loan interest rates, which took effect July 1st, are more than 1/3 of a percentage point less expensive than last year’s rates. Granted, these yearly fluctuations in interest rates are not some extraordinarily rare — they’re something that has, and will continue to happen annually, as a natural consequence of market fluctuations. Continue reading

About the “Fairness for Struggling Students Act of 2015”

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This month, 13 senators cosponsored the “Fairness for Struggling Students Act of 2015.” Through the passing of this bill, these senators intend to remove the bankruptcy immunities that have made private student loans impervious to being discharged through the process of bankruptcy. I’ve always held that applying bankruptcy immunity to private student loans is unfair, since they are far less borrower-friendly than federal loans. Allow me to expand a bit on why I believe federal student loans should have bankruptcy Continue reading

The Student Aid Bill of Rights (Obama’s Memorandum)

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Big news! Today, President Obama signed a memo called the Student Aid Bill of Rights. Through this memo, he plans on changing student loan regulations to make repayment easier, as of July 1st, 2016. Also, he intends to establish and ensure strong consumer protections for student loan borrowers. Phew. These are welcome news, indeed. Notable fact: This isn’t the first time federal student loan regulations have been majorly overhauled on July 1st. In both 1987 and 1993, on July 1st, Continue reading

Update on “Bank on Students Emergency Loan Refinancing Act”

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  Today, Senator Elizabeth Warren hosted a community call, which discussed her Bank on Students Emergency Loan Refinancing Act. The bill lets qualified borrowers refinance existing public and private loans to the same lower rates that Congress agreed on last year for new federal loans. If passed, it should give borrowers the ability to refinance at around 4%, depending on the loan type.   What Happens Next The Senate is going to have another vote on Bank on Students next Continue reading

Quick note about the “Relief for Underwater Student Borrowers Act”

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The News In late July of this year, U.S. House Representatives Frederica Wilson (FL-24) and Mark Pocan (WI-02) introduced the “Relief for Underwater Student Borrowers Act, H.R. 5239.” This bill aims to give the borrowers who have been granted debt forgiveness – i.e. the ones who’ve made 20 years of consistent payments through one of the U.S. Department of Education’s Income Based repayment assistance programs – a break from being taxed on the amount forgiven.   Why It Matters Presently, Continue reading