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Education Dept. fast-tracks forgiveness for borrowers with smaller student loans
The SAVE plan is becoming a key vehicle for President Biden’s student loan debt relief efforts. In a Friday press release, U.S. Education Secretary Miguel Cardona said, “The Biden-Harris Administration designed the SAVE Plan to put community college students and other low-balance borrowers on a faster track to debt forgiveness than ever before.”
Ting Shen/Bloomberg via Getty Images
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The SAVE plan is becoming a key vehicle for President Biden’s student loan debt relief efforts. In a Friday press release, U.S. Education Secretary Miguel Cardona said, “The Biden-Harris Administration designed the SAVE Plan to put community college students and other low-balance borrowers on a faster track to debt forgiveness than ever before.”
Ting Shen/Bloomberg via Getty Images
In a surprise move, the Biden administration says it will fast-track a big change, previously scheduled for July, that will soon erase the debts of thousands of federal student loan borrowers – undergraduate as well as graduate students who initially borrowed less than $21,000.
The administration’s cancellation math will work like this: Anyone who borrowed $12,000 or less in federal student loans and has been in repayment for at least 10 years will have their debts automatically erased in February, as long as they first enroll in the Biden administration’s new income-based repayment plan known as SAVE. It does not matter what repayment plan or plans they were in before, so long as they were actively repaying their loans and now enroll in SAVE.
With each additional $1,000 of debt, the window for forgiveness increases by one year. For example, a student who took out $13,000 in loans will now have their debts erased if they’ve been in repayment for 11 years – or in 12 years for those who borrowed $14,000 and so on.
The U.S. Education Department will base the policy on the amount students initially borrowed – not on the amount they currently owe.
“I am proud that my Administration is implementing one of the most impactful provisions of the SAVE plan nearly six months ahead of schedule,” said President Biden in a Friday statement.
“Today’s announcement gives borrowers an even greater reason to check out the SAVE plan and find out if they may qualify for earlier debt relief,” Education Secretary Miguel Cardona said in a press release.
The Biden administration does not yet know precisely how many borrowers will immediately qualify for cancellation through the policy change.
On a call Thursday with reporters, Education Under Secretary James Kvaal added that this move will help a particularly vulnerable group of federal student loan borrowers.
“This group has low incomes. About three-quarters of them receive Pell Grants. About one-third of them first attended a community college,” Kvaal told reporters. Perhaps most importantly, “more than 3 in 5 borrowers with defaulted loans originally borrowed less than $12,000.”
Many of these low-debt borrowers also have something else in common, Kvaal said: They left school before completing a degree. In the past, non-completers have often fallen into default because they struggle to repay their debts without the wage premium that comes with a degree.
Until now, one of the department’s signature loan forgiveness efforts had been focused on borrowers with older debts – 20 years or more. This move builds a policy bridge to borrowers who have spent far less time in the student loan system.
SAVE is the most forgiving repayment plan yet (literally)
To qualify for the fast-tracked forgiveness announced on Friday, borrowers need to first enroll in the SAVE plan, which is becoming a key vehicle for President Biden’s debt relief efforts in the wake of the Supreme Court’s scuttling of his broader relief plan. Beginning in February, borrowers enrolled in SAVE will be notified if their debts qualify for cancellation, with no further action required.
The administration also announced that, as of early January, 6.9 million borrowers have enrolled in SAVE with more than half, 3.9 million, making incomes low enough to qualify for a $0 monthly payment.
The SAVE plan exempts more of a borrower’s income from the monthly payment math than previous plans, and, under SAVE, interest no longer accumulates beyond what a borrower can afford to pay each month. Under previous plans, borrowers with low or $0 payments — too low to cover their monthly interest — saw that interest explode. With SAVE, that stops.
What’s more, the plan promises multiple windows for loan forgiveness, which means many borrowers will end up paying far less over time on SAVE than they would have on old plans. In fact, the department itself acknowledges that, under a previous plan for low-income borrowers, borrowers repaid, on average, $10,956 for every $10,000 they borrowed. Under SAVE, they will pay back just $6,121.
That’s why Republicans in Congress have been fighting to stop SAVE.
“President Biden is downright desperate to buy votes before the election – so much so that he greenlights the Department of Education to dump even more kerosene on an already raging student debt fire,” said the Republican chair of the House Education Committee, Virginia Foxx of North Carolina, after Friday’s announcement. “It would surprise no one if the Department relied on infants playing with abacuses to balance its books – it is a complete and utter disaster.”
While House Republicans have fought the plan, President Biden has said, even if Congress does send him a bill to kill SAVE, which the Senate seems unwilling to do, he’ll veto it.
Friday’s announcement comes after the department’s shaky launch of its new Free Application for Federal Student Aid, or FAFSA, form – which included a big mistake that will lower the amount of federal aid many applicants receive unless it’s remedied soon. The department is wrestling with when, and how, to fix this mistake, all while navigating a funding crisis.
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BBC Verify: Satellite image shows tanker seized by US near Venezuela is now off Texas
Trump was listed as a passenger on eight flights on Epstein’s private jet, according to emailpublished at 11:58 GMT
Anthony Reuben
BBC Verify senior journalist
One of the Epstein documents, external is an email saying that “Donald Trump traveled on Epstein’s private jet many more times than previously has been reported (or that we were aware)”.
The email was sent on 7 January 2020 and is part of an email chain which includes the subject heading ‘RE: Epstein flight records’.
The sender and recipient are redacted but at the bottom of the email is a signature for an assistant US attorney in the Southern District of New York – with the name redacted.
The email states: “He is listed as a passenger on at least eight flights between 1993 and 1996, including at least four flights on which Maxwell was also present. He is listed as having traveled with, among others and at various times, Marla Maples, his daughter Tiffany, and his son Eric”.
“On one flight in 1993, he and Epstein are the only two listed passengers; on another, the only three passengers are Epstein, Trump, and then-20-year-old” – with the person’s name redacted.
It goes on: “On two other flights, two of the passengers, respectively, were women who would be possible witnesses in a Maxwell case”.
In 2022, Ghislaine Maxwell was sentenced to 20 years in prison, external for crimes including conspiracy to entice minors to travel to engage in illegal sex acts and sex trafficking of a minor.
Trump was a friend of Epstein’s for years, but the president has said they fell out in about 2004, years before Epstein was first arrested. Trump has consistently denied any wrongdoing in relation to Epstein and his presence on the flights does not indicate wrongdoing.
We have contacted the White House for a response to this particular file.
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‘Music makes everything better’: A Texas doctor spins vinyl to give patients relief
Dr. Tyler Jorgensen sets “A Charlie Brown Christmas” on a record player at Dell Seton Medical Center in Austin Texas. He uses vinyl records as a form of music therapy for palliative care patients.
Lorianne Willett/KUT News
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AUSTIN, TEXAS — Lying in her bed at Dell Seton Medical Center at the University of Texas at Austin, 64-year-old Pamela Mansfield sways her feet to the rhythm of George Jones’ “She Thinks I Still Care.” Mansfield is still recovering much of her mobility after a recent neck surgery, but she finds a way to move to the music floating from a record player that was wheeled into her room.
“Seems to be the worst part is the stiffness in my ankles and the no feeling in the hands,” she says. “But music makes everything better.”
The record player is courtesy of the ATX-VINyL program, a project dreamed up by Dr. Tyler Jorgensen to bring music to the bedside of patients dealing with difficult diagnoses and treatments. He collaborates with a team of volunteers who wheel the player on a cart to patients’ rooms, along with a selection of records in their favorite genres.
“I think of this record player as a time machine,” he said. “You know, something starts spinning — an old, familiar song on a record player — and now you’re back at home, you’re out of the hospital, you’re with your family, you’re with your loved ones.”
Daniela Vargas, a volunteer for the ATX-VINyL program, wheels a record player to the hospital room of a palliative care patient in Austin, Texas.
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The healing power of Country music… and Thin Lizzy
Mansfield wanted to hear country music: Willie Nelson, Merle Haggard, George Jones. That genre reminds her of listening to records with her parents, who helped form her taste in music. Almost as soon as the first record spins, she starts cracking jokes.
“I have great taste in music. Men, on the other hand … ehhh. I think my picker’s broken,” she says.
Other patients ask for jazz, R&B or holiday records.
The man who gave Jorgensen the idea for ATX-VINyL loved classic rock. That was around three years ago, when Jorgensen, a long-time emergency medicine physician, began a fellowship in palliative care — a specialty aimed at improving quality of life for people with serious conditions, including terminal illnesses.
Shortly after he began the fellowship, he says he struggled to connect with a particular patient.
“I couldn’t draw this man out, and I felt like he was really struggling and suffering,” Jorgensen said.
He had the idea to try playing the patient some music.
He went with “The Boys Are Back in Town,” by the 1970s Irish rock group Thin Lizzy, and saw an immediate change in the patient.
“He was telling me old stories about his life. He was getting more honest and vulnerable about the health challenges he was facing,” Jorgensen said. “And it just struck me that all this time I’ve been practicing medicine, there’s such a powerful tool that is almost universal to the human experience, which is music, and I’ve never tapped into it.”
Dr. Tyler Jorgensen plays vinyl records as a form of music therapy for palliative care patients in Austin, Texas. Willie Nelson’s albums are a perennial hit.
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Creating new memories
Jorgensen realized records could lift the spirits of patients dealing with heavy circumstances in hospital spaces that are often aesthetically bare. And he thought vinyl would offer a more personal touch than streaming a digital track through a smartphone or speaker.
“There’s just something inherently warm about the friction of a record — the pops, the scratches,” he said. “It sort of resonates through the wooden record player, and it just feels different.”
Since then, he has built up a collection of 60 records and counting at the hospital. The most-requested album, by a landslide, is Fleetwood Mac’s Rumours from 1977. Willie is also popular, along with Etta James and John Denver. And around the holidays, the Vince Guaraldi Trio’s A Charlie Brown Christmas gets a lot of spins.
These days, it’s often a volunteer who rolls the record player from room to room after consulting nursing staff about patients and family members who are struggling and could use a visit.
Daniela Vargas, the UT Austin pre-med undergraduate who heads up the volunteer cohort, became passionate about music therapy years ago when she and her sister began playing violin for isolated patients during the COVID-19 pandemic. She said she sees similar benefits when she curates a collection of records for a patient today.
“We are usually not in the room for the entire time, so it’s a more intimate experience for the patient or family, but being able to interact with the patient in the beginning and at the end can be really transformative,” Vargas said.
Often, the palliative care patients visited by ATX-VINyL are near the end of life.
Jorgensen feels that the record player provides an interruption of the heaviness those patients and their families are experiencing. Suddenly, it’s possible to create a new, positive shared experience at a profoundly difficult time.
“Now you’re sort of looking at it together and thinking, ‘What are we going to do with this thing? Let’s play something for Mom, let’s play something for Dad.’” he said. “And you are creating a new, positive, shared experience in the setting of something that can otherwise be very sad, very heavy.”
Other patients, like Pamela Mansfield, are working painstakingly toward recovery.
She has had six neck surgeries since April, when she had a serious fall. But on the day she listened to the George Jones album, she had a small victory to celebrate: She stood up for three minutes, a record since her most recent surgery.
With the record spinning, she couldn’t help but think about the victories she’s still pursuing.
“It’s motivating,” she said. “Me and my broom could dance really well to some of this stuff.”
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