Updates to IonTuition’s Employer Services
IonTuition | Student Loan Management
by Jarett Reinwald
2w ago
IonTuition, the leader in providing student loan repayment assistance to over 2 million students and employees across the U.S. is making several changes that will impact our stakeholders: Relaunching IonLEARN  – Financial Wellness In the coming weeks, ION will relaunch its financial wellness platform – IonLEARN, as part of our services. Content is curated every 15 days with videos, quizzes, games, and posts covering everything from automobile purchases to student loans, 401K planning, and credit scores. Introducing CoverU – Fill your Workforce Talent Pipeline ION launches CoverU as part o ..read more
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The Year Student Loan Repayment Never Started
IonTuition | Student Loan Management
by Jarett Reinwald
1M ago
In November, the Education Department’s Under-Secretary, James Kvaal, reported that only 60 percent of the 28 million student loan borrowers who needed to make payments had made them. But this was on 22 million and not the entire 28 million borrowers. About 4 million more new borrowers will enter repayment between March 2024 to March 2025. We are just starting the return to repayment. Student Loan Servicers Need an On-Ramp Just as Much as Borrowers Servicers are responsible for 44 million student loan borrowers, of whom 28 million entered repayment. In the first 90 days of repayment resuming ..read more
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Student Loan Default Predictions
IonTuition | Student Loan Management
by Jarett Reinwald
1M ago
Artificial intelligence has a role in higher education, but it won’t help analyze or predict which student loan borrowers will become delinquent or default. AI will not be able to predict actions colleges and universities can take to alleviate the issue. The three-and-a-half-year payment pause followed by a “soft” year-long repayment start has reset any delinquency and student loan default predictions. Student Loan Delinquency Has Already Increased by 40 or 50 Percent The majority of student loan borrowers have not made payments since the soft restart in October 2023 because they don’t have to ..read more
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Student Loan Repayment Deserves a Three-Year Grace Period Instead of Six Months
IonTuition | Student Loan Management
by Jarett Reinwald
2M ago
By Balaji Rajan, CEO of IonTuition Since 1990, I have collected and serviced student loans. Helping borrowers with student loan repayment was enjoyable while Federal Student Aid (FSA) established a “reasonable and affordable” payments program. There were landmark changes on collecting debts in the U.S. including administrative wage garnishment, Treasury offset, litigation, and even bankruptcy reform. Programs like Income Contingent Repayments, Consolidation Loans, and Loan Rehabilitation, and 30 others were all introduced in just the last 15 years. Student Loan Borrowers Need Time to Build W ..read more
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Shorter Time to Forgiveness for SAVE Plan
IonTuition | Student Loan Management
by Jarett Reinwald
2M ago
The Biden-Harris Administration announced it will grant forgiveness to borrowers on the Saving on a Valuable Education (SAVE) Plan beginning in February. Borrowers who originally took out $12,000 or less for college and make ten years of payments will have their debts canceled. The SAVE plan replaces the REPAYE income-driven repayment plan, which allows for loan forgiveness of the full balance after 20 or 25 years. Under the SAVE plan, for every $1,000 borrowed above $12,000, a borrower can receive forgiveness after an additional year of payments. This means most borrowers with a balance ..read more
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Student Loan Repayment Problems Continue for Borrowers
IonTuition | Student Loan Management
by Jarett Reinwald
4M ago
The three-year, COVID-era student loan payment pause officially ended in September. The first payments were due in October. Since then, borrowers have faced long hold times to connect to representatives at their federal student loan servicer, payment processing errors, seemingly random repayment status changes, and confusion over their repayment options. Here’s a brief video capturing what student loan borrowers have been sharing on social media: Student Loan Debt Has Grown while Personal Financial Health Has Declined The national student loan debt balance has grown by 13.5% since 2018. The c ..read more
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Gainful Employment Regulations Under Final Review
IonTuition | Student Loan Management
by Jarett Reinwald
7M ago
The U.S. Department of Education’s proposed rules for gainful employment rules and other accountability initiatives are currently awaiting final approval. The OMB’s Office of Information and Regulatory Affairs is expected to approve the request on or before November 1, 2023. Rules Would Go into Effect on July 1, 2024 The intention of the GE rule is to protect college students from low-quality programs. The Higher Education Act set the requirement early on that graduates from institutions find “gainful employment in a recognized occupation.” However, the term “gainful employment” wasn’t defined ..read more
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The New SAVE Plan for Student Loan Repayment
IonTuition | Student Loan Management
by Jarett Reinwald
9M ago
The Saving on a Valuable Education (SAVE) Plan replaces the existing Revised Pay As You Earn (REPAYE) Plan. The SAVE plan is an income-driven repayment option. Borrowers earning less than $15 an hour may have loan payments as low as $0 per month. Borrowers earning more would still benefit from SAVE more than previous IDR plans, and those borrowers won’t see their balance grow as long as they keep up with payments. When does the SAVE plan go live? The SAVE plan won’t be fully implemented until July 1, 2024. However, the SAVE plan will go live this summer with limited benefits. How do borro ..read more
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SCOTUS Decision on Student Debt Relief
IonTuition | Student Loan Management
by Jarett Reinwald
9M ago
SCOTUS Blocks Biden’s One-Time Student Loan Cancellation Program The U.S. Supreme Court has rejected the Biden administration’s proposal to cancel student loan debt. The court ruled today on two cases: Biden v. Nebraska and The Department of Education v. Brown. In a 6-3 decision, the court found that the Secretary does not have the authority under the HEROES Act for the loan forgiveness program. Student loan interest on federal loans will resume on September 1st. Monthly payments will start in October. Interest will accrue whether or not payments are made. IonTuition has implemented a return t ..read more
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Student Loan Repayment Will Resume in September
IonTuition | Student Loan Management
by Jarett Reinwald
10M ago
The Senate passed legislation late Thursday to raise the debt ceiling, avoiding a government shutdown. A provision in the bill officially terminates the student loan repayment suspension period. Student loan repayment will resume sixty (60) days after June 30, 2023. Borrowers should expect to receive their billing statements around September 1st, at least 21 days ahead of their payment due date. The bill prohibits the Secretary of Education from extending the payment pause without congressional approval. However, Secretary Miguel Cardona has made it clear that he is committed to the current ti ..read more
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