Trump Administration Considers Moving Student Loans from Education Department to Treasury

Trump Administration Considers Moving Student Loans from Education Department to Treasury

The Trump administration is considering moving responsibility for overseeing more than $1 trillion in student debt from the Education Department to the Treasury Department, a switch that would radically change the system that helps 43 million students finance higher education. The potential change surfaced in a scathing resignation memo sent late Tuesday night by James Runcie, the head of the Education Department’s federal student aid program. Mr. Runcie, an Obama-era holdover, was appointed in 2011 and reappointed in 2015. He cut short his term, which was slated to run until…

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Trump’s budget seeks to eliminate one major benefit of federal student loans that costs billions

Trump’s budget seeks to eliminate one major benefit of federal student loans that costs billions

The Trump administration’s first budget proposes ending a program to encourage student-loan borrowers to go into public service by forgiving their debt to save an estimated $27 billion over the next decade. Here’s how the program works: If you take out a federal student loan, you have your loans forgiven after making 10 years of on-time payments and working for an employer the Department of Education deems to be serving the public good. Qualified employers include local, state and federal government agencies and nonprofit organizations. (Private lenders don’t offer this…

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Guidelines issued for education loan repayment support scheme

Guidelines issued for education loan repayment support scheme

Representative image THIRUVANANTHAPURAM: The state government has announced guidelines for availing the benefits of education loan repaymentsupport scheme announced in the 2016-17 budget. The scheme provides government support to those who find it extremely difficult to repay the educational loan even after the completion of their course. The support is for repayment of loans classified into various categories such as non-Non Performing Assets(NPA)/standard account with sanctioned loan up to Rs 9 lakh, loans up to Rs 4 lakh that turned NPA on or before March 31, 2016 and NPA loans…

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Education Dept. Keeps Obama Plan to Streamline Loan System

Education Dept. Keeps Obama Plan to Streamline Loan System

Under plans being considered by the Education Department, students at colleges and universities such as Columbia University in New York will see changes to how their federal student loans are managed.CreditKarsten Moran for The New York Times The Education Department on Friday took up an Obama-era plan to streamline federal student loan servicing by moving to a new, single platform for managing the loans of 43 million borrowers. The department had indicated it might jettison the previous administration’s initiative, which was intended to simplify a system that consumer advocates have…

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Department of Education Seeking Single Servicer for Student Loans

Department of Education Seeking Single Servicer for Student Loans

The Department of Education announced Friday that it would offer a contract to a single servicer to administer federal student loans. Currently, ED contracts with four different servicers to manage its $1.2 trillion student loan portfolio. Education Secretary Betsy DeVos ED released an amended contract solicitation for that future provider on Friday afternoon. “The amendment ensures high quality customer service, maintains all meaningful borrower protections, increases oversight and provides significant savings to tax payers,” James Manning, acting under secretary of education, said in a call with the press on Friday….

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Prime Minister’s Office wants more institutes to bid for ‘world class’ tag

Prime Minister’s Office wants more institutes to bid for ‘world class’ tag

New Delhi: Under pressure from the prime minister’s office, the human resource development ministry has expedited the plan to create world class universities and further relaxed the rules to encourage more private and public institutions bid for the tag. Months after it floated draft rules, the ministry has now changed several of them, according to two government officials who spoke on condition of anonymity and documents seen by Mint. First, institutions such as the Indian Institutes of Management (IIMs) will have the liberty to apply for the “world class” tag…

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Guidelines issued for education loan repayment support scheme

Guidelines issued for education loan repayment support scheme

Representative image THIRUVANANTHAPURAM: The state government has announced guidelines for availing the benefits of education loan repaymentsupport scheme announced in the 2016-17 budget. The scheme provides government support to those who find it extremely difficult to repay the educational loan even after the completion of their course. The support is for repayment of loans classified into various categories such as non-Non Performing Assets(NPA)/standard account with sanctioned loan up to Rs 9 lakh, loans up to Rs 4 lakh that turned NPA on or before March 31, 2016 and NPA loans…

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Goodbye to low interest rates on student loans

Goodbye to low interest rates on student loans

Families have been benefiting from historic lows on student loan interest rates. But that will change this fall. As the result of the Treasury Department’s auction of 10-year notes on Wednesday, interest rates on federal student loans will rise by seven-tenths of a percentage point. The new rates will take effect July 1 and are only good for loans taken out to pay for the 2017-2018 academic year. Undergraduate students can expect to pay 4.45 percent in interest on new Stafford loans, instead of the current 3.76 percent. At that…

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Nicki Minaj pays off thousands in fans’ student loans, tuition

Nicki Minaj pays off thousands in fans’ student loans, tuition

Students saddled with college expenses are in for a real treat now that Nicki Minaj has stepped up her efforts to help college kids with their tuition. Over the weekend, the rapper shared an Instagram post that lists the names with payments doled out since shes called on students last week in a tweet to show her their straight A report cards in exchange for tuition money. Minaj also announced that she will be starting a charity to further help students financially “very soon.” Devonte Portis, a sophomore majoring in…

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Kerala launches Rs900 crore education loan repayment scheme

Kerala launches Rs900 crore education loan repayment scheme

Bengaluru: Kerala has launched a Rs900 crore scheme to help students from families with annual income below Rs6 lakh repay their education loans. The move assumes significance as it comes at a time when students are suffering because of banks selling a large number of its “bad loans”, or loans that have turned non-performing assets or NPAs, to asset reconstruction companies (ARCs), which may charge a higher interest rate in turn. Bad study loans are a severe problem for banks in Kerala. Out of the Rs10,220 crore total educational loans…

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