Connect with us

News

Education Dept. fast-tracks forgiveness for borrowers with smaller student loans

Published

on

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


hide caption

toggle caption

Advertisement

Ting Shen/Bloomberg via Getty Images


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.

Advertisement

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.

Advertisement

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.

Advertisement

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.”

Advertisement

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.

News

Reflections on America’s 250th birthday

Published

on

Reflections on America’s 250th birthday

The nation’s capital may be the focal point of the 250th Independence Day celebration, but people all across America have plans to mark the occasion, from boisterous public parades to quiet personal reflections on history.

Julia Demaree Nikhinson/AP


hide caption

toggle caption

Advertisement

Julia Demaree Nikhinson/AP

As the United States turns 250 years old, Americans across the country are spending the holiday thinking about what the big birthday means to them, with reflections and celebrations as diverse as the nation itself.

NPR’s member station reporters fanned out to collect snapshots of the occasion from sea to shining sea.

In one ‘City of Presidents,’ Main Street is decorated for a party

At least two cities in the U.S.call themselves the “City of Presidents” and Cuba City, in Wisconsin, is one of them, largely due to its patriotic Main Street decorations. Every year from Memorial Day through Veteran’s Day, red, white, and blue shields, one for each U.S. president, are prominently displayed high up on the light poles lining Main Street.

Advertisement

It’s a tradition that began in 1976 to commemorate the country’s bicentennial, says Donna Rogers, who is president of the ongoing project but admitted that when it first started, she wasn’t particularly tuned-in to the display.

“I was raising three little boys and working at John Deere, so I didn’t really pay too much attention to community service at that time,” she said.

Donna Rogers shows off one of Cuba City's presidential lampposts.

Donna Rogers shows off one of Cuba City’s presidential lampposts.

Susan Bence/WUWM


hide caption

Advertisement

toggle caption

Susan Bence/WUWM

A few years later, she was tapped to help keep the initiative alive.

When she thinks of the country’s history, she says the signing of the Declaration of Independence and abolition of slavery top her list, plus a current event–

Advertisement

“Of course, now, our nation’s 250th birthday. I think those three would be the three most important things in history to me,” she said, quickly adding “[the] right for women to vote, don’t forget that, right?”

Rogers and Cuba City are pulling out all the stops for the 250th, with a parade and a mac-and-cheese festival, because “that was some of our founding fathers favorite foods, along with turkey and cranberries and other items.”

She laughed and admitted she googled that. True or not, Rogers says they’ll go all-out to celebrate the 250th in her “City of Presidents”.

Advertisement
Continue Reading

News

Family-owned company prepares to put on the largest fireworks display in history: “It is the biggest show that we’ve ever done”

Published

on

Family-owned company prepares to put on the largest fireworks display in history: “It is the biggest show that we’ve ever done”

Washington — There are fireworks, and then there’s what’s in store for Saturday in Washington, D.C.

When the sun goes down on Independence Day, the skies of Washington are expected to fill with a record-setting 850,000 individual fireworks for a 40-minute spectacle like no one has seen before.

A company called Pyrotecnico will attempt the biggest fireworks show in history, using five generations of family know-how and a background in Super Bowls and large musical acts to help America celebrate its 250th birthday with a bang.

“I mean, it is the biggest show that we’ve done,” Rocco Vitale, president of Pyrotecnico, told CBS News. “…My earliest memories of fireworks displays and doing the Fourth of July was here.”

Pyrotecnico has been planning this year’s show since January, using computers to simulate the display. But now it’s time for the real thing.

Advertisement

Vitale gave CBS News an exclusive look at his not-so-secret weapons: eight barges out on the Potomac River, each one ready to light up the night sky.
 
“Each firing location has a communication device, and its all set on GPS. And once the time of the show is put into the system, it goes at that time,” Vitale explained.

According to Freedom 250, the organizer of the “Salute to America 250 Celebration & Fireworks” on the National Mall, President Trump will deliver remarks at 9:45 p.m. Eastern Time, and the fireworks display will get underway at 10:45 p.m. The event is expected to draw hundreds of thousands of people.


Join CBS for “The Great American Block Party 250,” a primetime special on Saturday, July 4, hosted by CBS Evening News anchor Tony Dokoupil and Entertainment Tonight’s Nischelle Turner, featuring live musical performances, celebrations around the country, and the largest fireworks show in history in the skies over the nation’s capital. Tune in July 4 at 8 p.m. ET on CBS and stream it on Paramount+ and CBS News 24/7.

Continue Reading

News

Oregon ER doctors win a ‘David and Goliath’ battle against a national company

Published

on

Oregon ER doctors win a ‘David and Goliath’ battle against a national company

A national physician staffing firm tried to take over the contract held by Eugene Emergency Physicians to work in local hospitals. The local physicians used a new state law to oppose the move.

sorbetto/Digital Vision Vectors/Getty Images


hide caption

toggle caption

Advertisement

sorbetto/Digital Vision Vectors/Getty Images

For the latest stories on the science of healthy living, subscribe to NPR’s Health newsletter.

In between shifts in the emergency room, Dr. Dan McGee was in an Oregon courtroom. He was fighting for his practice — Eugene Emergency Physicians (EEP). The group of more than 40 doctors and physician assistants work at multiple emergency departments; it was being replaced by a national company.

“This was big time, David and Goliath stuff,” McGee said. “You see 14 of their lawyers sitting there and you see three of ours.”

Advertisement

Those lawyers argued that ApolloMD, the national company, violated Oregon’s corporate practice of medicine law. The 2025 law bans corporations from taking control of a medical practice’s operations and finances.

The case garnered national interest because Oregon’s new law targets the loopholes large staffing firms have been employing to circumvent state corporate medicine laws.

Money for control

Most states have laws requiring that doctors own medical practices, not corporations. These rules aim to put patient interests ahead of profit motives. Over the last several years, companies have used a model where a doctor technically owns the local practice, but as Erin Fuse Brown, a professor at Brown University, explains, those physician owners are often not involved in care and cede hiring, firing and other operational functions to the corporation.

Fuse Brown said these arrangements are attractive to hospitals because these companies often promise more revenue and take over the responsibilities that come with running an ER.

“There’s worry that these investors or these corporate management companies should not be totally controlling the operations and the clinical decisions of those who are trained to deliver patient care,” Fuse Brown said.

Advertisement

The connection to patient care concerned Dr. Jonas Pologe, who works for Eugene Emergency Physicians, in the Eugene, Ore., area. ApolloMD offered local doctors jobs, but Pologe worried that if he pushed back on decisions ApolloMD made, he could lose work hours.

Continue Reading
Advertisement

Trending