federal student loans

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Two federal judges recently said that the Education Department lacked the power to reduce or cancel federal student loans under the SAVE program; an appeals court subsequently lifted the injunction in one case.

In cases filed by Republican state officials, federal judges in Kansas and Missouri, both Democratic appointees, issued injunctions, saying that Congress had not given the Department of Education the power to reduce and cancel those loans as it had planned to do under the SAVE program.… Continue Reading

The CFPB Private Education Loan Ombudsman has issued an annual report containing an analysis of approximately 5,000 federal student loan complaints, 1,900 private student loan complaints, and 1,700 debt collection complaints related to private or federal student loans submitted by consumers between September 1, 2019 and August 31, 2020. The report notes that total student loan debt is now $1.677 trillion and is second only to home mortgages in outstanding household debt.… Continue Reading

On August 8, 2020, President Trump signed four executive orders that are designed to provide additional COVID-19 relief as talks on Capitol Hill collapsed on August 7 between White House negotiators and Democratic leaders over a fifth coronavirus stimulus package. One of those actions, which is directed to the Secretary of Education in the form of a memorandum (the “Memorandum”), continues student loan payment relief during the COVID-19 crisis for certain federal student loans held by the Department of Education.… Continue Reading