News Clips

In response to the lawsuit, Persis Yu, of the Student Borrower Protection Center, says, “FFEL lenders have shown their true colors. Instead of working in the interest of student loan borrowers – their customers – these lenders are holding hostage relief to millions of borrowers in order to keep making a buck off of borrowers suffering.”

“There are big open questions about how people are going to connect the dots,” Mike Pierce, the executive director of the Student Borrower Protection Center, said in an interview. “But the track record for the student loan system isn’t good. In some ways, all the White House is doing here is reflecting the reality that the student loan system doesn’t provide people with a path to get their debts canceled 100 percent of…

If the idea is to keep student loans affordable for borrowers and the government determines what’s affordable based on income, “it doesn’t really make logical sense,” that you would make a distinction between how much a borrower has to pay based on their degree, said Persis Yu, deputy executive director at the Student Borrower Protection Center. “They don’t have more resources to pay that money just because they have a degree,” she said.

When President Joe Biden announced a plan to forgive student loan debt, many borrowers who kept making payments during the pandemic wondered if they’d made the right choice. Borrowers who paid down their debt during a pandemic freeze that started in March 2020 can in fact get a refund , but the process for doing that hasn’t always been clear. If you think you’re eligible, here’s what you need to know:

“This move by the Education Department is a positive and necessary step for fulfilling President Biden’s historic promise to cancel student debt,” said Student Borrower Protection Center executive director Mike Pierce in a statement on Tuesday. “We’re glad to see that the Department understands the importance of automation and maximizing relief to borrowers.”

Millions of Californians got a long-awaited financial boost last month when the Biden administration announced that it would cancel up to $20,000 in federal student debt for low- and moderate-income borrowers. But California tax policy could throw a wet blanket over the party. That’s because the loan forgiveness may be taxable under current state rules, even though it’s tax-free under federal law.