12-Month On-Ramp for Federal Student Loans to Expire Soon The Department of Education’s 12-month on-ramp for federal student loans expires September 30th. The on-ramp prevents the worst consequences of missed, late, or partial payments, including negative credit reporting for delinquent payments. During this period, borrowers’ loans are automatically put into forbearance after missing three payments. […] The post 7 Million Student Loan Borrowers Unable or Unwilling to Make Payments During the On-Ramp appeared first on IonTuition | Student Loan Repayment Technology ..read more

Court Temporarily Blocks Biden Administration’s Latest Debt Relief Plan This week, a federal judge granted a temporary restraining order against the Biden administration’s student debt relief plan, which may lead to record-high student loan defaults. The Department of Education is forbidden from any mass cancelation of student loan debt until the legal challenges can play […] The post Student Loan Defaults Expected to Spike with No Relief in Sight appeared first on IonTuition | Student Loan Repayment Technology ..read more

Earlier this week, the U.S. Supreme Court delivered a significant blow to the Biden administration’s efforts to provide relief to student loan borrowers by denying their emergency request to reinstate the SAVE plan. The SAVE plan is an income-driven repayment option that would reduce most borrowers’ monthly payments by half and shorten the time required […] The post Student Loan Borrowers Waiting on Court Decision after Supreme Court Denies SAVE Plan Reinstatement appeared first on IonTuition | Student Loan Repayment Technology ..read more

The U.S. Supreme Court has declined the Biden-Harris administration’s request to reinstate the SAVE Plan following the GOP-led lawsuit which escalated through the court system. The U.S. Supreme Court has said it expects the 8th Circuit Court of Appeals to make a final ruling on the fate of the SAVE plan. This is another blow […] The post Supreme Court Denies to Reinstate SAVE Plan appeared first on IonTuition | Student Loan Repayment Technology ..read more

The three-year COVID payment pause offered a lifeline for millions of student loan borrowers and a reprieve from student loan defaults. However, the repeated extensions and the subsequent one-year “on-ramp” period created significant confusion and uncertainty. The On-Ramp Reinforced Non-Payment For borrowers unprepared to resume payments, the on-ramp period provided a crucial buffer. Those with […] The post Student Loan Default Rates to Skyrocket if Half of Borrowers Continue Not Making Payments appeared first on IonTuition | Student Loan Repayment Technology ..read more

The 8th Circuit Court of Appeals has updated its temporary stay of the Saving for a Valuable Education (SAVE) income-driven repayment (IDR) plan and issued a preliminary injunction formally blocking SAVE. The Department of Education will place all borrowers currently enrolled in SAVE into an interest-free forbearance period. Loan servicers will contact borrowers impacted by […] The post Court Extends Block on SAVE Plan appeared first on IonTuition | Student Loan Repayment Technology ..read more

In a statement released today by the U.S. Secretary of Education Miguel Cardona, “Borrowers enrolled in the SAVE Plan will be placed in an interest-free forbearance” while the Biden Administration defends the SAVE Plan in court. SAVE, or Saving on a Valuable Education, is an income-driven repayment option that offers the lowest possible monthly payments and includes a path to forgiveness in as little as 10 years. The Education Department has already forgiven $5.5 billion in student debt for over 400,000 borrowers through the SAVE Plan. Borrowers on the SAVE plan were due to have their paymen ..read more

Student loan borrowers are confused over the SAVE plan, the new income-driven repayment (IDR) option scheduled to be fully rolled out earlier this month. The Saving on a Valuable Education (SAVE) Plan was a keystone in the Biden administration’s promise to provide student loan debt relief to borrowers but has faced numerous legal challenges. The SAVE Plan’s Purpose The SAVE plan launched in October to replace REPAYE. July 1st marked the date when borrowers on the SAVE plan would see a recalculation of payments based on 5% of their discretionary income instead of 10%. This move would have poten ..read more

Two federal judges have temporarily blocked parts of the SAVE student loan income-driven repayment plan. The SAVE Plan, (Saving on a Valuable Education) replaced REPAYE and was planned to be fully rolled out in July. Borrowers on SAVE can lower their monthly payments and earn debt forgiveness after as little as 10 years of payments. Other IDR plans included debt forgiveness after 20 or 25 years. The SAVE plan has proven to be a popular choice to help borrowers reduce their monthly payments Nearly 8 million, or 1 in 5 student loan borrowers, have enrolled in SAVE since its rollout last year. Io ..read more

Federal Student Aid announced that Direct Loan Interest Rates for student loans disbursed for the 2024-2025 school year will increase from last year. Interest rates are determined annually and set for a 12-month period. Rates are determined by a formula tied to yields on 10-year Treasury notes, which were recently auctioned. There has been a rise in interest rates across the Federal Reserve as they continue to battle inflation. While the increase may seem small, this can add up over the life of the loan. The rise in fixed interest rates will cost borrowers approximately $5 extra in monthly pa ..read more