Latest news with #SAVE
Black America Web
10 hours ago
- Business
- Black America Web
Student Loan Collections Result In Credit Scores Plummeting For Millions In Americans
Source: ariya j / Getty While most folks hip to the game understand President Trump won a second nonconsecutive term largely due to the rampant misogynoir ingrained in American society, white folks will swear with their whole chest they elected a failed businessman because they believed he would fix the economy. So far, he's done a bang-up job by laying off thousands of federal workers, implementing an erratic tariff policy, and now his approach to student loan repayments has resulted in credit scores plummeting for millions of Americans. AP reports that the Trump administration has begun referring unpaid student loans to debt collection firms after 90 days of non-payment. The Federal Reserve Bank of New York has said that 2.2 million student loan recipients saw their credit score drop by at least 100 points, and another 1 million saw their scores drop by over 150 points as a result. That is not an insignificant figure, as that could be the difference between getting approved for an apartment and having to live at home. The bank also reported that 1 in 4 people with student loans were 90 days behind or more on their student loan payments. As someone who's still paying off the last of their student loans, I can tell you firsthand that the messaging around repayments has been inconsistent at best post-pandemic. The Biden administration tried to forgive up to $10,000 in loans for people who earned under six figures, but because the GOP refuses to let working-class Americans have nice things, they filed a lawsuit against the plan. The Supreme Court ruled 6-3 that the Department of Education didn't have the authority to forgive the loans. While repayments restarted in 2023, the Biden administration implemented a one-year grace period. The former administration also launched the SAVE plan, which tied payment amounts to the loan recipient's income. Whereas the Biden administration took a thoughtful, worker-centric approach to student loan repayments, the Trump administration has taken more of a Stewie Griffin approach to the issue. Earlier this year, the Trump administration announced it would garnish wages from those delinquent on their student loans. Last month, five million people were sent a notice informing them that their wages and social security checks would be garnished to pay back their student loans. Clearly, they didn't think that was punishment enough for people who made the egregious mistake of trying to get an education. In addition to garnishing wages on those who fell behind on their student loans, the cost of payments has skyrocketed for millions of student loan recipients after a federal judge put a block on the SAVE plan. Layoffs at the Department of Education have made it harder for student loan recipients to get in contact with anyone who can provide them with more information or guidance on how to make repayments. It's increasingly clear that the Trump administration is fueling its tax cuts for the rich by punishing the poor and working class. But please, tell me again how the Trump vote is fueled by economic anxiety. SEE ALSO: Education Department To Garnish Wages On Student Loan Debt Trump To Garnish Defaulted Student Loan Borrowers' Wages This Summer SEE ALSO Student Loan Collections Result In Credit Scores Plummeting For Millions In Americans was originally published on Black America Web Featured Video CLOSE
Forbes
3 days ago
- Business
- Forbes
How To Plan For The End Of SAVE And What To Expect
The introduction of the Saving On a Valuable Education (SAVE) income-driven repayment plan was a major help for consumers with federal student debt. Not only did SAVE raise the income threshold for $0 monthly payments so more borrowers could qualify, but it based monthly payments for undergraduate loans on just 5% of discretionary income (instead of the 10% or more required by other income-driven plans). While the plan wasn't perfect, it paved the way for lower (or $0) monthly payments for millions of borrowers. Unfortunately, the SAVE plan is going to end, whether through a court ruling, or through the proposed changes to repayment plans currently being negotiated in Congress. This means consumers who had planned on repaying federal student loans with the SAVE plan will need to change course completely in the coming year. But when? And what options will be available? Some of it is still unknown, but you can start planning today. The good news for those who signed up for the SAVE income-driven repayment plan is that there's no hurry to make a move. Borrowers with federal student loans on SAVE are currently in forbearance, according to the U.S. Department of Education. This means monthly payments are not due, and that interest isn't accruing on loan balances. When will payments resume for SAVE borrowers? That's the million dollar question, although nobody knows the exact answer at the moment. There are several estimated timelines for when SAVE borrowers will need to resume payments, and most point to 2026. The Dept. of Education website says monthly payments for borrowers who signed up for the SAVE plan will resume in the fall, but the latest push of forbearance dates suggest that it would be December at the earliest, if at all in 2025. A more likely scenario is early to mid 2026. Either way, SAVE borrowers have some time right now to figure out what to do. With interest not accruing on loans due to the current forbearance, most SAVE borrowers may be fine waiting to see what happens in the coming months. Since monthly payments are paused through late-2025 and potentially into 2026, it can also make sense to start building savings or to cut spending to prepare for the student loan payments that will eventually come due. However, the current forbearance for SAVE means that these months that won't directly count toward Public Service Loan Forgiveness (PSLF) if that's a path you're pursuing. This means borrowers who are hoping to have their balances forgiven through work in public service may want to move faster to get back on track. PSLF buyback is an option, but as the latest status report from the Department of Education shows, the timeframe is months and the backlog is growing. Borrowers on SAVE have the option to apply for other income-driven repayment plans for federal student options include Income-Based Repayment (IBR), Pay As You Earn (PAYE), and Income-Contingent Repayment (ICR) Plans. And yes, the Dept. of Education has the applications open for these programs online again after a brief hiatus. According to Carey Donaldson, founder of NewBeginnings Spokane (a student loan financial literacy and advocacy organization), borrowers picking a new repayment plan should expect increased monthly payments compared to what they were planning with SAVE. After all, remaining income-driven plans base monthly payments on a minimum of 10% of discretionary income (or more), or at least twice as much as the SAVE plan required for monthly payments on undergraduate student loans. Donaldson points to the current administration's stance on student loans as an indication that the "pendulum is swinging in the opposite direction" from previous years. Where borrowers could skip payments on federal student loans without major consequences since the initial Covid-19 payment pause in 2020, standard rules for student loan repayment have been reinstated, she says. This means you should make sure you don't let your loans fall into delinquency or default, no matter what. If you do, you can face a range of penalties for your loans and your credit, including late payments being reported to the credit bureaus and the potential for wage garnishment. What should borrowers do? Carey says consumers with federal student loans should plan ahead knowing they will need to get back into the routine of repayment after five years of having the opportunity to put it off. This means borrowers should add student loan payments back into their monthly budgets and expect monthly payments to be higher than previous years. "Repayment is upon us and the consequences of non-payment have returned, but default and delinquency do not have to be the ending to the story," she says. Borrowers on SAVE trying to figure out what to do now should also keep an eye out for new changes to federal student loans that may be on the way. Financial planner Hailey Melander Crimmins of Wealth Enhancement Group points out the Trump administration's proposed restructuring of federal student loans as a sign that SAVE borrowers may need to brace themselves for what's to come. Congress has proposed ending all current income-driven repayment plans for federal student loans and replacing them with a new IDR plan called the Repayment Assistance Plan, or RAP. While the new plan (as proposed) would lead to loan forgiveness of remaining balances after 30 years, it would require higher monthly payments all along. Of course, a standard repayment plan would also be offered for those who want to pay down student debt faster, but even the standard plan is different for future borrowers. The administration is also proposing an end to Grad PLUS loans and eliminating Public Service Loan Forgiveness (PSLF) eligibility for medical and dental residents. Also, many tax provisions for student loan forgiveness are ending. This means some borrowers who have debt forgiven in the future could face a student loan forgiveness tax bomb they aren't prepared to deal with. "The significance of these changes overall are longer repayment and forgiveness periods, restricted eligibility, higher monthly payments, and taxation of forgiveness or discharge," says Crimmins. "We can't be sure that these changes will pass, but they reflect the priorities of the current administration."
Yahoo
3 days ago
- Politics
- Yahoo
Texas launches first investigations into ‘potential noncitizen voting' in 2024 election
AUSTIN (KXAN) — The Texas Office of the Attorney General, or OAG, announced in a Tuesday press release that AG Ken Paxton opened investigations into 33 'potential noncitizens who allegedly voted' in the 2024 election. The release did not say where these alleged cases occurred or how the potential noncitizens voted. They are the OAG's first investigations into specific cases of possible noncitizen voting since the 2024 general election. According to the release, this is because of an executive order by President Donald Trump, which allowed states to freely access the U.S. Citizenship and Immigration Services' SAVE database. 'Noncitizens must not be allowed to influence American elections, and I will use the full weight of my office to investigate all voter fraud,' said Paxton in the release. 'In order to be able to trust the integrity of our elections, the results must be determined by our own citizens—not foreign nationals breaking the law to illegally vote.' In October 2024, Texas Gov. Greg Abbott announced the removal of 6,500 noncitizens from the state's voter rolls. He also said Texas Secretary of State Jane Nelson recommended the OAG investigate approximately 2,000 of those individuals. However, an October 2024 investigation by ProPublica, The Texas Tribune and Votebeat uncovered that those figures were inflated. Paxton has tracked along with his party's stance on elections—the OAG release calls him 'a champion for election integrity.' He launched an 'illegal voting tipline' in August 2024 and sent poll watchers to several counties in November 2024. Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
Yahoo
3 days ago
- Sport
- Yahoo
ICCSD greenlights $104.6M five-year facility master plan, OKs 'independent' fieldhouses
Editor's Note: This story was updated because an earlier version included an inaccuracy about the final vote. The Facility Master Plan passed with a 5-1 vote. The Iowa City Community School Board has approved a $104.6 million plan to upgrade several facilities in the next five years. The plan includes three new, independent fieldhouses at each of the city's public high schools and additions to the fine arts facilities. The Facility Master Plan passed with a 5-1 vote at the regular meeting of directors on Tuesday, June 10. The proposed projects are part of the district's ongoing and extensive facility master plan 2.0, a $270.7 million initiative approved in April 2022. With $114.7 million remaining, the district will fund the new projects through Secure an Advanced Vision for Education (SAVE) and Physical Plant Equipment Levy (PPEL). More: Iowa City school board considers $104M facility upgrades, including new gyms, performance venues Several projects are already underway, including the district's Center for Innovation, located at 301 ACT Dr, which will house the Junior Achievement Dream Accelerator program. The district anticipates fully opening the facility by 2026. Upgrades to Iowa City High School's baseball and softball fields at Mercer Park are also underway, with an expected completion date of summer 2026. The board previously approved a $14.5 million commitment to the Coralville aquatic center for Liberty and West's swim teams. Notably, the new facilities plan will bring 'major renovations' and additions to City High, Liberty High, and Iowa City West High School's performing arts spaces, and each high school will have a new multi-use fieldhouse. West High's fieldhouse will be the first of the three completed in the winter of 2027-28. City's new fieldhouse will be finished in the spring of 2028, followed by Liberty in the summer of 2028. Each fieldhouse will be an " independent structure located directly on each campus' with indoor turf, making 'outdoor athletics and activities accessible year-round,'according to a news release from the ICCSD. The fieldhouses will focus on flexibility, providing a facility that will benefit P.E. classes, marching band practices, cheer and dance teams, and community programming. More: Iowa-based CIVCO opens its $15M, 96,000-square-foot facility in Coralville Each of the high school's fine arts spaces will get a facelift, including improvements to the auditoriums with enhanced seating and stages, as well as updates to technology, lighting, and rigging. City High's auditorium is first on the list, which is expected to be complete by the winter of 2026-2027. West High will follow in summer 2027. Both 'little theaters,' spaces designed for smaller productions, will also be updated, with City High's renovations finished by spring 2027 and West's in spring 2030. The district expects to complete Liberty's auditorium updates by fall 2028. Deputy Superintendent Chace Ramey said the five-year facilities plan accounts for an estimated 5% annual increase in construction costs. More: Tippie family donates $20M to help expand University of Iowa business school Director Mitch Lingo, the only board director who voted against the facility master plan, the only board director who voted against the facility master plan, asked how equity and equality factored into the district's choices 'When the shovels hit the ground, and people start seeing shovels over West High School and not as many shovels in other two high schools…how would you explain that to the community?' Lingo asked. Ramey called said the $104 million facilities plan is a 'celebration' and a 'tremendous accomplishment' and that 'the shovels have already hit the ground." More: Iowa City to hold 'No Kings' protest alongside more than 1,000 cities nationwide. What to know 'In four years, (we will) upgrade our athletics and fine arts (across the district)…I think it's a tremendous accomplishment,' Ramey said. 'We have tried to take into account what are some immediate needs…but also some of those larger projects…We couldn't do all three fieldhouses at the same time… We're still on pace to open all three within the six-month window, which I think is a credit to how the plan was put together.' Other board members applauded the work and how it supports 'the whole child, both inside the classroom and outside the classroom." Several members agreed that extracurricular activities like athletics, fine arts, and clubs are an integral part of the educational experience. Lingo said he voted "no" because of the long-term financial risk, declining enrollment, and his concern for future boards. He referenced the board's decision to close Hills Elementary in 2024, as well as other notable projects. 'Before joining the board… I was largely unaware of the weight of facilities' decisions (and) I quickly learned of the weight…when I was part of the decisions to close Hills Elementary,' Lingo said. 'Having these experiences has made me cautious about long-term facilities planning… And I have a concern with not just the projects in front of me today, but the flexibility of future boards, administrators, and most importantly, the students and families that come in and use our school district.' Once the ground is broken, flexibility becomes limited, the flexibility of future boards and I will continue to advocate to slow down in this process," Lingo continued. "I'm sorry, but I can't support the (facilities master plan) as it's currently proposed.' Jessica Rish is an entertainment, dining and education reporter for the Iowa City Press-Citizen. She can be reached at JRish@ or on X, formerly known as Twitter, @rishjessica_ This article originally appeared on Iowa City Press-Citizen: Iowa City CSD's $104M facility master plan was approved. What is next?
Time of India
13-06-2025
- Business
- Time of India
Student loan cuts ahead? Here is what the US Senate's plan could mean for college affordability
The U.S. Senate has introduced a new proposal that could dramatically reshape how students and families pay for college. As part of the higher education section of President Trump's 'One Big Beautiful Bill Act,' lawmakers aim to cap how much can be borrowed through federal student loans and reduce the number of repayment options. These changes, while slightly less aggressive than an earlier House version, still represent a significant shift in student aid policy. For undergraduates, graduate students, and parents, this could mean reassessing how to finance education or even reconsidering which schools to attend. Understanding what's in this bill is essential for students looking to make informed financial decisions about college in the coming years. Lower federal loan limits One of the most notable proposals in the Senate bill is the introduction of stricter caps on how much students can borrow. While undergraduates would still be eligible for both subsidized and unsubsidized federal loans, graduate students and parents would see a reduction in the total amount they can access. Unlike the House version, the Senate's proposal retains subsidized loans, which cover interest while the student is in school. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Switch to UnionBank Rewards Card UnionBank Credit Card Apply Now Undo However, the overall borrowing ceiling would be lowered, especially for graduate-level education and for federal PLUS loans taken out by parents. This could limit the financial flexibility of families who rely heavily on federal aid to cover tuition and living costs. Students aiming for expensive professional degrees or relying on parent loans may now face shortfalls that were previously covered by federal borrowing. These students might have to explore private loans or consider part-time study, alternative institutions, or delayed enrollment. Risks of shifting to private lending Tighter limits on federal loans may lead more students and families to turn to private lenders to bridge the gap. Unlike federal loans, private student loans generally lack key protections such as income-driven repayment plans, deferment options, and forgiveness programs. This shift could expose students to more rigid repayment terms, variable interest rates, and fewer safety nets in times of financial hardship. Those without strong credit histories or co-signers might also struggle to secure private financing altogether. At the same time, with fewer repayment plan choices under the new bill—only two federal repayment options would remain—students would lose the flexibility offered by current systems like the SAVE plan. For many, this could increase monthly payments or extend the life of their loans. What this means for future borrowers For students planning their academic futures, this proposed legislation means careful financial planning will become even more important. Changes to borrowing limits could make some institutions less affordable or shift the balance toward more cost-conscious choices such as in-state public universities or community colleges. Students may also need to be more proactive in seeking scholarships, applying early for federal and institutional aid, and comparing total costs of attendance across different schools. Understanding the long-term impact of borrowing less—or turning to private loans—will be critical in maintaining financial stability post-graduation. Those pursuing graduate or professional education may need to adjust their timelines, explore alternative funding sources, or reconsider program choices based on the new financial realities. While the Senate version of the bill is less severe than the House's earlier draft, it still signals a major overhaul in how college is financed in the United States. Many of these proposals could still be altered during the legislative process, but the direction is clear: federal support for student borrowing is tightening. As the bill moves through Congress, students and families should stay informed and engaged. Whether you're applying for college, currently enrolled, or planning for graduate school, understanding these potential changes will be essential for making smart, sustainable choices. Is your child ready for the careers of tomorrow? Enroll now and take advantage of our early bird offer! Spaces are limited.
