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Gov’t Cancels $7.4B in Student Loans

Account Recovery

The federal government announced on Friday that it had approved an additional $7.4 billion in student loan debt relief for nearly 300,000 borrowers, many of whom were signed up for the administration’s new income-driven repayment program.

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FTC Halts Student Loan Debt Relief Scheme, Takes First Action Under New Impersonation Rule

Account Recovery

The Federal Trade Commission has taken action against a student loan debt relief scheme that is accused of fraudulently extracting more than $20.3 million from consumers.

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Judge Dismisses Suit Challenging Student Loan Forgiveness Plan

Account Recovery

A District Court judge in Michigan has dismissed a lawsuit that challenged an initiative from the federal government seeking to forgive $39 million of student loan debt, determining the plaintiffs lacked standing to sue. Well, that didn’t take very long.

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Student Loan Moratorium Costing Gov’t $5B per Month, Think-Tank Claims in Suit

Account Recovery

The moratorium on student loan payments has cost the federal government $160 billion in lost assets and the federal government should be ordered to force individuals with unpaid student loan debts to start repaying them, according to a nonprofit think-tank that is seeking a preliminary injunction against the Department of Education.

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Legal Challenges to Student Loan Cancellation Plan Launched

Account Recovery

The legal challenges to the federal government’s plan to cancel student loan debt for individuals making less than $125,000 a year have started, with a pair of suits claiming the administration failed to take the proper steps before announcing the plan.

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Biden Announces Student Loan Cancellation Plan, Extends Moratorium on Payments

Account Recovery

Surprising nobody yesterday, President Biden announced that the federal government will forgive up to $10,000 in student loan debt for anyone making less than $125,000 per year and up to $20,000 for anyone with a Pell grant, while also extending the moratorium on making student loan payments through the end of the year.

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Bill Introduced in House to Prohibit Cancellation and Forgiveness of Student Loans

Account Recovery

A bill has been introduced in the House of Representatives that, if enacted, would prohibit the federal government from cancelling or forgiving federal student loans because the government does not have the authority to do so and because it’s “unfair for taxpayers who paid student loans or did not attend college to pay for those … (..)