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As 40 million studentloan borrowers return to repayment this month following the three-year Covid forbearance, one group of borrowers is facing particularly dire circumstances: parent borrowers. Parent PLUS loans are federal loans issued to parents for the benefit of a child’s undergraduateeducation.
The federal government tends to provide assistance to students and research projects, according to a data analysis from Pew, while state funding often supports operating expenses. Funding can also come from private sources, as well as the tuition and fees that students pay. When a school is underfunded, students often pay the price.
Department of Educations efforts to reduce studentloan burdens through the new SAVE repayment plan. But the lawsuits have already resulted in a series of changing court orders temporarily barring the Department of Education from offering key SAVE plan benefits. The IDR buy back process is not yet available at all.
Department of Educations efforts to reduce studentloan burdens through the new SAVE repayment plan. But the lawsuits have already resulted in a series of changing court orders temporarily barring the Department of Education from offering key SAVE plan benefits. For what this means for borrowers, see Part 2 here.
This week there have been two big student debt relief announcements from the Biden Administration. Today, President Biden announced that 277,000 more people are having their federal studentloan debt canceled. That brings the total number of people who have had federal student debt canceled during this administration to 4.3
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