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Biden tries again at student loan cancellation, this time for those with financial hardships

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Biden tries again at student loan cancellation, this time for those with financial hardships

WASHINGTON (AP) — The Biden administration is moving ahead with a new path to student loan cancellation for Americans who face steep medical bills, child care costs and other types of financial hardship that prevent them from repaying their loans.

Announced Friday, the proposed rule is President Joe Biden’s third attempt at student loan cancellation as he faces repeated legal challenges from Republican states. His first plan was rejected by the Supreme Court last year, and his second plan has been temporarily halted by a federal judge in Missouri.

The new rule would have to clear a number of hurdles before it becomes official, and it’s unclear if it could be realized before Biden leaves office in three months. Like Biden’s other loan forgiveness proposals, it could face court challenges from conservatives who say it’s unconstitutional and unfair.

If finalized, the new rule would allow the Education Department to proactively cancel loans for borrowers if the agency determines they have an 80% chance of being in default on their loans within two years. Others could apply for a review to determine if they meet the criteria for cancellation.

It’s meant to help borrowers who are unlikely to ever be able to repay their loans. The Education Department estimates about 8 million Americans would qualify for cancellation.

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“For far too long, our broken student loan system has made it too hard for borrowers experiencing heartbreaking and financially devastating hardships to access relief, and it’s not right,” said Education Secretary Miguel Cardona.

Those who could be eligible include people with unexpected medical bills, high child care costs, heavy costs related to caring for relatives with chronic illnesses, and those struggling financially in the wake of natural disasters, the Education Department said.

Under the proposal, the department could use a range of factors to judge whether someone is likely to fall into default on their loans. It includes household income, age, whether they receive public benefits, and their overall debt — not just from student loans.

It also allows consideration of “any other indicators of hardship identified by the Secretary.” A loan is usually considered in default if no payment has been made in about nine months.

With about 1 million borrowers in default every year, Cardona said the new rule would prevent his agency from trying to collect money it’s unlikely to recoup.

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“Servicing and collecting on defaulted loans is not free, it costs taxpayer dollars,” Cardona said in a call with reporters. “And there’s a point when the cost of trying to collect on a defaulted loan just is not worth it.”

The proposal will enter a 30-day public comment period before it could become official. The administration said it plans to finalize the rule in 2025. It faces an uncertain future arriving less than two weeks before the Nov. 5 presidential election.

Vice President Kamala Harris, the Democratic nominee, has not detailed her plans for student debt cancellation if she wins the presidency. Republican nominee Donald Trump has called Biden’s cancellation proposals unfair and illegal.

Biden’s latest proposal is the result of a federal rules process that included experts from across higher education. Advocates pushed hard for the hardship provision, saying too many borrowers get trapped with debt they’ll never be able to repay.

The Biden administration said it has authority under the Higher Education Act, which allows the education secretary to waive debt in certain cases. It also noted that other federal agencies routinely waive debts owed to them, considering factors like “good conscience” and equity.

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It’s a similar legal argument used to justify Biden’s second attempt at student loan forgiveness, which proposes relief for groups of borrowers including those with large sums of interest and those with older loans. A federal judge in Missouri blocked that plan amid a legal challenge from Republican states.

Biden campaigned for the White House on a promise of new student loan cancellation, but his biggest plans have been halted by Republican opponents. Last year, the Supreme Court rejected a plan to forgive up to $20,000 for millions of Americans after several Republican states sued to block it.

Amid its legal battles, the administration has increasingly shifted attention to its work canceling student loans using existing programs, including one for public service workers. In total, the administration says it has now canceled $175 billion for about 5 million borrowers.

The hardship provision was originally discussed as part of the second-attempt plan that’s now on hold in Missouri, but the Education Department broke it off into its own proposal to spend more time on the details.

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The Associated Press’ education coverage receives financial support from multiple private foundations. AP is solely responsible for all content. Find AP’s standards for working with philanthropies, a list of supporters and funded coverage areas at AP.org.

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Trump Unbound as US Presidential Race Nears Its End

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Trump Unbound as US Presidential Race Nears Its End
By James Oliphant GREENSBORO, North Carolina (Reuters) – With his third straight U.S. presidential campaign coming down to the wire, Donald Trump mused at a rally about hydrogen-powered cars exploding, lamented how difficult it is to get spray paint off limestone and marveled at how billionaire …
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Truck ramming attack near Israeli army base leaves 1 dead, dozens injured; suspect killed

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Truck ramming attack near Israeli army base leaves 1 dead, dozens injured; suspect killed

A suspect rammed a truck into a bus stop near the Israeli city of Tel Aviv, injuring at least 35 people in what local authorities are investigating as a possible terror attack, according to reports, with one victim dying of his injuries.

In the city of Ramat Hasharon, in the area of Glilot northeast of Tel Aviv, the truck slammed into a bus that had stopped to drop off passengers, as Israelis were returning to work after a week-long holiday. 

The bus stop is near an army base and the headquarters of Israel’s Mossad intelligence agency. 

ISRAEL BEGINS RETALIATORY STRIKES AGAINST IRAN FOLLOWING MISSILE BARRAGE TARGETING ISRAELIS

Some victims were left trapped under the truck. Civilians shot and killed the truck driver, who allegedly got out with a knife, Tazpit Press Service (TPS), an international Israeli news agency, reported.  

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The Ichilov Medical Center in Tel Aviv announced later on Sunday that one person injured in the attack died, TPS reported.

Dozens of people were injured after a suspected terrorist rammed his truck into a bus near Tel Aviv. (Shimon Baruch/TPS-IL)

The truck driver was a resident of the Israeli-Arab town of Qalansawe, police sources told TPS. 

Hamas and the Islamic Jihad terrorist group praised the suspected attack but did not claim it, according to the Associated Press. TPS reported that many of those hurt were elderly retirees who were traveling to a museum. At least one victim sustained life-threatening injuries, according to TPS. 

ISRAEL’S ‘DAYS OF REPENTANCE’ STRIKES AGAINST IRAN WILL CONTINUE IF TERROR REGIME RESPONDS, IDF WARNS

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Also near the scene are several army intelligence units that have been targeted by missile strikes from the Lebanese-based terrorist group Hezbollah. 

suspected terror attack near Tel Aviv bus stop

A suspected terror attack took place near Tel Aviv, leaving dozens hurt.  (Shimon Baruch/TPS-IL)

Iran’s supreme leader, meanwhile, said Israeli strikes on the country over the weekend “should not be exaggerated nor downplayed,” while stopping short of calling for retaliation, suggesting Iran is carefully weighing its response to the attack.

On Saturday, Israeli warplanes attacked military targets in Iran in response to an Iranian ballistic missile attack earlier this month.

Israeli authorities response to truck ramming

Israeli emergency responders at the scene of a suspected terror attack north of Tel Aviv on Oct. 27, 2024. More victims are trapped beneath the truck.  (Nadav Goldstein/TPS-IL)

Israeli Prime Minister Benjamin Netanyahu said Sunday that the strikes “severely harmed” Iran and achieved all of Israel’s goals.

 

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“The air force struck throughout Iran. We severely harmed Iran’s defense capabilities and its ability to produce missiles that are aimed toward us,” Netanyahu said in his first public comments on the strikes.

The Associated Press contributed to this report.

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Western observers confirm intimidation during Georgian elections

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Western observers confirm intimidation during Georgian elections

International observers said there were concerns with the electoral process both before and during elections in Georgia, fuelling polarisation between Georgian Dream and opposition parties who claim the result was “rigged.”

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There were various issues with the electoral process during last night’s elections in Georgia, according to a Western delegation of observers co-ordinated by the Organisation for Security and Co-operation in Europe (OSCE).

Whilst members said that voting on election day was generally well-organised, they pointed to a tense and pressured environment pre-election day as well as several instances of intimidation and procedural inconsistencies during the day itself.

“During our observation, we noted cases of vote-buying and double-voting before and during elections, especially in rural areas” Iulian Bulai, head of the Parliamentary Assembly of the Council of Europe delegation, said.

He added that the presence of cameras inside polling stations added to a climate of pressure and that an observer from his delegation found their car vandalised when carrying out assessments.

Georgian Dream declared they had a majority after hours of voting yesterday based on data from the country’s electoral commission. Opposition parties have fiercely disputed the results, claiming the election was “rigged.”

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In 24% of cases analysed by a delegation from the OSCE Office for Democratic Institutions and Human Rights voter secrecy was found to be compromised.

Antonio Lopez-Isturiz White, who represented a group of observers from the European Parliament, pointed to a tense and highly polarised environment for voters saying, “Although, outwardly, the campaign was quite subdued, there were signs that efforts were underway to undermine and manipulate the vote.”

Observers pointed to an uneven playing field, with the incumbent Georgian Dream party having significantly more financial resources in the run-up to the election.

They said although there was clear political bias across all domestic media outlets in Georgia, significantly more time on-screen time was dedicated to the ruling party before voting started.

“There were reports of misuse of public resources and administrative capacity for the benefit of the ruling party. Pressure exerted on civil servants to participate in campaign events and vote,” Lopez-Isturiz White said.

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He added that there was evidence that institutions such as the newly established Anti-Corruption Bureau were being “instrumentalised for political purposes.”

The OSCE said that 529 observers were deployed across Georgia, including a delegation of 12 from the European Parliament.

The observers analysed the environment before the election, including media coverage of election campaigns, as well as procedures that took place on the day itself.

The delegation declined to answer questions on how its findings would impact the formation of a new government in Georgia, but confirmed they would be preparing separate reports and monitoring the post-election environment.

Their findings are likely to add fuel to Georgia’s opposition parties, who have contested the results of the country’s electoral commission which found Georgian Dream to be within a comfortable majority.

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Georgian Dream have denied reports that the election was rigged. Prime Minister Irakli Kobakhidze said following results, “The Georgian people made the only choice for which there was no alternative; they chose peace and the country’s development, its bright, European future.”

European leaders have been relatively quiet about congratulating the ruling party, with Hungarian Prime Minister Victor Orbán congratulating Georgian Dream in a post on X.

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