I hear and feel you but don’t make any assumptions it won’t help you out.
Between Reddit and friends, it might help more than you think.
But everyone’s situation is different. I’m just here to share the information.
Biden doesn't want to fight for 50,000 student loan relief. It's too hard
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Between Reddit and friends, it might help more than you think.
But everyone’s situation is different. I’m just here to share the information.
Report: Biden SAVE Plan May Increase Likelihood of Homeownership for Borrowers
Arrman KyawUnder the Biden-Harris administration’s student loan SAVE repayment plan, low- to moderate-income borrowers may be able to not only save more money, but also have an easier time owning homes for themselves, according to a joint report from the Center for Responsible Lending (CRL) and the California Policy Lab (CPL).
The Saving on a Valuable Education (SAVE) planis an income-driven repayment (IDR) plan meant to reduce the monthly payments that borrowers have to make, down to even $0 a month. IDR plans calculate repayment amounts based on income and family size.
The plan aims to achieve its goal by raising federal poverty guidelines so that less of people’s incomes are counted as “discretionary income” and by shrinking the percentage of discretionary income factored into monthly repayment values. Earlier this year, the U.S. Department of Education (ED) announced that those who borrowed $12,000 or less can have their loans forgiven after as few as 10 years of repayment.
Since its unveiling as the “most affordable student loan repayment plan ever” about two months after the Supreme Court 2022’s rejection of the administration’s major student debt cancellation effort, the plan has seen 6.9 million borrowers enrolled, according to ED.
The report, "Unveiling the Potential of Saving on a Valuable Education (SAVE)," CRL researchers examined credit data shared by the CPL to assess how the SAVE plan can help borrowers repay less each month. Much of CRL’s analysis for the report revolved around the Millennial generation, because the typical IDR-enrolled borrower is 38 years old, according to CRL researchers. And IDR-enrolled borrowers usually have annual low- to moderate- incomes, the report stated.
Millennial IDR borrowers could see their monthly repayment values drastically go down by more than $100 under the SAVE plan, the report noted. Average monthly payments of $193 would decrease to $67 for those with only undergraduate loans and $117 for those with both undergrad and graduate loans.
And notably, borrowers from majority minority neighborhoods – zip codes with populations of at least 50% Black or Latino residents – could see larger monthly payment reductions than those from majority-White neighborhoods, according to the report.
The reduced payment values brought about by the SAVE plan can also potentially affect the likelihood of borrowers being able to get mortgages for houses, the report’s authors wrote.
"There is limited research on how this plan could impact other dimensions of financial security for borrowers. For example, how could this plan affect borrowers' ability to obtain wealth-building assets, like mortgages or business loans?" said report co-author Christelle Bamona, senior research at CRL. "Research has shown previously that student loan debt has prevented several families from acquiring assets like homes. And owning a home has traditionally been considered as something crucial for attaining financial security and also building generational wealth."
According to the report, a 2017 National Association of Realtors (NAR) survey indicated that student loan debt stands as a significant obstacle to people owning homes. 85% of respondents reported that they couldn’t “save for a down payment because of student debt” and 74% reported that they didn’t feel “financially secure enough because of existing student debt to buy a home.”
Related to this issue is the concept of a person’s debt-to-income (DTI) ratio – total monthly debt payments divided by gross monthly income – which is one of the factors looked at for mortgage approval. According to the NAR survey, high DTI ratio was the most cited reason that non-homeowner’s mortgages were denied (17%.)
By potentially decreasing the monthly amount that borrowers have to repay, the SAVE plan can subsequently reduce their DTIs as well and make it less likely that their mortgages are denied, the report authors wrote.
Under the Biden-Harris administration’s SAVE plan, non-homeowning Millennial IDR-enrolled borrowers paying back undergrad loans could see DTI ratio decreases of 1.5% to 3.6%, the report authors wrote.
One hurdle to such improvement is the specific way in which federal agencies dealing with loans and mortgages, such as the Federal Housing Administration (FHA), interact with $0 monthly repayments.
Although one agency, the Federal National Mortgage Association (Fannie Mae), uses $0 monthly payments for its DTI ratio calculations, many others do not. Instead, the FHA and several other agencies, when faced with borrowers paying $0 a month, opt to calculate DTI ratios based on 0.5% of the borrower’s total loan balance instead of the $0 repayment.
Collectively switching over to Fannie Mae’s methodology could benefit millions of borrowers and reduce DTI ratios for millennials by several percentage points, according to the report and its adjoining CRL policy recommendations.
“The failure to allow or require $0 federal student loan repayments in current mortgage underwriting standards results in potential millennial borrowers having a 3.8% to 7.1% higher debt-to-income ratio than their actual DTI,” according to the report recommendations. “Given this, the failure to fully incorporate the benefits of the SAVE program for borrowers eligible for $0 repayments serves as a barrier to securing a federally guaranteed or federally supported mortgage for as many as 3.9 million of the currently enrolled 6.9 million SAVE borrowers, which includes 3.4 million renters.”
CRL researcher Lucia Constantine and CPL Executive Director Evan White served as the report’s other co-authors.
“In order to fully actualize some of the benefits that go along with SAVE, some of the federal housing agencies need to revise their underwriting criteria so that IDR borrowers who are making $0 payments can increase their possibilities of homeownership,” Constantine said.
The researchers note that the analyses included in the report does not account for borrowers who are not at all enrolled in an IDR plan to begin with.
Bull shit. I can’t stand them
Biden administration looks to expand student loan forgiveness to those facing 'hardship'
Americans who are struggling to repay federal student loans because of financial hardship could get some of their debt canceled under President Joe Biden’s latest attempt at forgiveness.
apnews.com
Amazing!!!
Biden administration looks to expand student loan forgiveness to those facing 'hardship'
Americans who are struggling to repay federal student loans because of financial hardship could get some of their debt canceled under President Joe Biden’s latest attempt at forgiveness.
I hope companies adopt this. I’m sure this would be good in recruiting talent.
Mothafuckas squint their face up giving you your bi weekly paycheck.
Already being done in the legal field.
Student loan borrowers facing hardships could have debt forgiven
The Biden administration is considering a new rule that would forgive federal student loans for borrowers who face a high risk of default.
By: Kellan Howell, Justin BoggsThe Biden administration on Thursday unveiled its latest proposal outlining how it will determine who among millions of student borrowers will be eligible for debt relief.
Under the proposal, the secretary of Education could forgive the remainder of loans for certain borrowers experiencing life challenges that may prevent them from repaying their loans, or borrowers for whom "the costs of enforcing the full amount of the debt are not justified by the expected benefits of continued collection of the entire debt."
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Potential hardships that may be considered include high-cost expenses like health care, taking care of a loved one or housing costs; other factors that may be considered include a borrower’s age, disability, age of the loan, and “the extent to which hardship is likely to persist.”
The Department of Education said it expects this proposal would bring debt relief to borrowers who have at least an 80% chance of defaulting on their loans within the next two years, though officials could not quantify how many people would be impacted or give an estimate on the expected amount of money that would be forgiven.
Thursday's announcement has not been finalized as the proposal still has to go through the rulemaking process.
SEE MORE: Colleges not getting FAFSA data on time may cause financial aid delays
Thursday's announcement represents one of numerous attempts to ease student loan debt burdens on millions of borrowers. Last month, the White House said that student loan borrowers enrolled in the Saving on a Valuable Education (SAVE) Plan who have made payments for at least 10 years and originally took out up to $12,000 will be eligible for full debt forgiveness. Eligible borrowers will have their loans automatically forgiven.
The White House had its first major efforts to forgive student loan debt for millions of borrowers rejected by the Supreme Court. The initial plan called for the automatic forgiveness of up to $20,000 in debt, depending on a borrower's income.
"One way we can provide crucial breathing room to those borrowers is to identify hardships, including a borrower's total student loan balance, how much they have to pay compared to their income, and whether a borrower has student loan debt that interferes with paying for basic needs, like getting food on the table, and access to health care for their families," said Education Secretary Miguel Cardona. "This proposal would allow the Department of Education to provide automatic relief for borrowers who are likely to go into default in two years. Keep in mind, a big reason the president has been pushing for student debt relief is to address the over 1 million defaults we've seen annually."
While it's unknown exactly how many borrowers will be impacted by the White House's proposal, a senior White House official said it is aiming toward being "as expansive" as it can be within the confines of the law.
The potential rule could face potential legal challenges, just like previously overturned attempts at student debt forgiveness.
Reporting by Scripps News reporter Haley Bull was used in this report.
Trending stories at Scrippsnews.com
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Thanks for the updates. I'm actually planning on calling into my servicer within the next week or so just to check in. I've been making my payments ever since repayment started, but have some questions about my past payments and my projected forgiveness date.
Long story short, I'm pretty sure I was making payments for at least a few years (back in like 2006) before I consolidated way back when. I'm wondering if those can somehow be applied to my total payments now. I figure it's worth a shot to try to hash it out.
Long story short, I'm pretty sure I was making payments for at least a few years (back in like 2006) before I consolidated way back when. I'm wondering if those can somehow be applied to my total payments now. I figure it's worth a shot to try to hash it out.
It should be and if you need proof, you should be able to log in to the folks you making payments too to get a record.
My servicer changed during the pandemic, and as that was all happening I obtained copies of all that payment history from them, but it only went back to 2014. So these fools either scrapped my payments prior to the consolidation or were just playing games. Coincidentally and as bad luck would have it, I used to use this line of credit through Citibank to pay my loan automatically all those years, and during the pandemic that division in Citibank discontinued and closed all the accounts as well so I couldn't get the records that way either.
I didn't use to mess with the actual government student loan site too much in the past, I accessed everything via my servicer instead. But I'm going to need to go on the government site again to see if they have a list of EVERY actual payment. I remember vividly that a few years after I graduated I almost went into default and they told me I needed to make 12 consecutive payments via autopay in order to get out of default, and this was before I ever consolidated a knew that was possible. So I want to know if those payments are up for consideration.
yeah i would go on the federal student loan website then. they keep a record of any payments you ever made...i was able to go back to the year i started making payments in 2011, but I also could log into sallie mae where i started making payments before it transferred over to fedloans back in 2013
Word I'ma do that.
Biden administration to cancel another $1.2 billion of student loans
By Jeff MasonFebruary 21, 20245:09 AM ESTUpdated 2 hours ago
U.S. President Joe Biden walks up to members of the news media to give a statement before boarding Marine One for travel to California from the South Lawn of the White House in Washington, U.S., February 20, 2024. REUTERS/Leah Millis Purchase Licensing Rights, opens new tab
WASHINGTON, Feb 21 (Reuters) - President Joe Biden's administration said on Wednesday it is cancelling $1.2 billion worth of student loans for some 153,000 people who are eligible under a program used to make good on promises to increase loan forgiveness.
Biden last year pledged to find other avenues for tackling debt relief after the Supreme Court in June blocked a broader plan to forgive $430 billion in student loan debt.
The administration has now canceled some $138 billion in student debt for nearly 3.9 million people through executive actions, the White House said.
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The latest announcement applies to people enrolled in a repayment program known as Saving on a Valuable Education (SAVE) and covers those who borrowed $12,000 or less who have been repaying the money for at least 10 years.
The move will "particularly help community college and other borrowers with smaller loans and put many on track to being free of student debt faster than ever before," the White House said.
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Left-leaning progressive and young voters, whose support Biden needs to win re-election in November, have been vocal in advocating for student loan forgiveness on a wide scale. Republicans largely oppose such actions.
00:29'We don't anoint kings': Nikki Haley vows to go on
Reporting by Jeff Mason; editing by Miral Fahmy
Our Standards: The Thomson Reuters Trust Principles.
I’ve posted my story in here several times.
Wife, 2 co workers benefited, and myself all benefited.
Wife and myself combined for 600k wiped out. I said I was going to see how much I actually paid but it went from $600 a month to $1200 a month in payments
Mine were forgiven late last yr, 25k gone. I was shocked and had set up to make payments and received this letter instead.
My nieces also got theirs forgiven.
What does that have to do with America? We ain’t Israel , that ain’t our problem or our country. Why is Biden blamed ? I don’t give a fu k about those sand cacs or those kikes. Why are niggas so wrapped up in worrying about them faggots? Those people don’t give a fuck about Blacks.
Black Palestinians shrug off racism
Racist taunts toward Gaza’s African minority are not uncommon, despite centurieslong African migration to Palestine.
www.al-monitor.com
Ignorant as hell, but not surprising.What does that have to do with America? We ain’t Israel , that ain’t our problem or our country. Why is Biden blamed ? I don’t give a fu k about those sand cacs or those kikes. Why are niggas so wrapped up in worrying about them faggots? Those people don’t give a fuck about Blacks.
Black Palestinians shrug off racism
Racist taunts toward Gaza’s African minority are not uncommon, despite centurieslong African migration to Palestine.
Oh yeah? Get that Arab dick out yall mouths. Them people don’t give a fuck about yall
MONEYWATCH
Biden administration is forgiving $1.2 billion in student debt for 153,000 borrowers. Here's who qualifies.
By Aimee Picchi
Edited By Anne Marie Lee
February 21, 2024 / 5:00 AM EST / CBS News
The Biden administration on Wednesday said it is automatically forgiving $1.2 billion in student debt for 153,000 borrowers. Loan holders whose debt will be discharged will receive an email from President Joe Biden today informing them of the forgiveness, the Department of Education said.
The debt relief is the latest push from the White House to address the nation's $1.77 trillion in student debt after the Supreme Court last year invalidated the Biden administration's plan for broad-based student loan forgiveness. That plan would have helped more than 40 million borrowers each wipe away up to $20,000 in debt.
With this latest round, the Biden administration said it has approved loan relief for nearly 3.9 million borrowers, many of whom have been repaying their debt for decades. The 153,000 borrowers who qualify for the latest debt forgiveness are those who are enrolled in the Saving on a Valuable Education (SAVE) repayment plan and who have made at least 10 years of payments.
"f you've been paying for a decade, you've done your part, and you deserve relief," said U.S. Secretary of Education Miguel Cardona in the statement.
Who qualifies for this new debt forgiveness?
The Biden administration said 153,000 borrowers who are enrolled in the SAVE plan are eligible.Those who are eligible have been enrolled in repayment plans for at least 10 years and originally borrowed $12,000 or less for college, the Education Department said.
For every $1,000 borrowed above $12,000, a borrower can receive forgiveness after an additional year of payments, the department added.
What steps do borrowers have to take?
None, according to the Education Department.People receiving a loan discharge will get an email from Biden today about their loan forgiveness, and don't need to take further action. Servicers will process the forgiveness in the next few days, and borrowers will see their loans forgiven in their accounts, according to the statement.
What is the SAVE plan?
The SAVE plan is income-driven repayment program, or IDR, that was created by the Biden administration. IDRs peg a borrower's monthly payment to their income, lowering their financial burden.The SAVE plan was designed to fix some problems with older IDR programs, such as allowing interest to snowball on a borrower's debt.
All borrowers enrolled in SAVE can receive forgiveness after 20 years or 25 years of repayments, but the White House has developed the shorter 10-year forgiveness period for people with smaller balances.
Borrowers can apply for the SAVE plan here.
How many people are enrolled in SAVE?
There are currently 7.5 million borrowers enrolled in SAVE, the Education Department said on Wednesday. About 4.3 million of those have a $0 monthly payment.
@darth frosty - you put me on this dude. I enjoy his 5 minute common sense talking points. Salute!
He was speaking nothing but FACTS! If you read the comments it’s tons of people giving their testimonies
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Paying no taxes for the loan amounts discharged is a game changer no one talks about....
But Biden ain’t shit and is a racist