Betsy DeVos Student Loan Forgiveness

Betsy DeVos Might Bring Changes to Student Loan Forgiveness Programs

Betsy DeVos  Student Loan Forgiveness Programs

Betsy DeVos, the President’s nominee for Secretary of Education, might be making some changes to a student loan forgiveness program already in jeopardy, according to Market Watch.

During her confirmation process, DeVos was evasive in her written answers when asked about the Public Service Loan Forgiveness (PSLF) program. The question—asked by Senator Patty Murray, a Democrat from Washington—asked DeVos if she would be willing to protect the program. Instead of giving a set yes or no, DeVos wrote that she would execute the Higher Education Act and consider issues like student loan debt once Congress starts to address them.

That kind of non-committal answer has many believing that she is planning to making changes to the program, which would take away benefits to the millions of borrowers who are under the burden of massive student loan debt.

To be fair, PSLF has been under fire for quite some time. Currently, PSLF offers student loan forgiveness to federal borrowers who go into careers in nonprofit or government fields for 10 years and consistently pay their student loans during that period of time.

recent report stated that the government might have miscalculated the cost of the program, and the Obama administration even suggested capping the forgiveness offered by PSLF.

The first group is set to have their loans forgiven this year, but there is doubt even those borrowers—comprised mainly of teachers and social workers—will be able to receive the full benefits of the program.

While it’s estimated that 4 million might qualify for PSLF, only about 10 percent have applied for it, most likely because it has not been widely publicized and the steps needed to prove eligibility can be confusing.

DeVos was narrowly approved by the nomination committee with a vote of 12-11. She now moves in front of the entire Senate for confirmation, although some Republicans haven even expressed concern about her qualifications for the job.


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Troubled For-Profit University of Phoenix Up For Sale

One of America’s largest for-profit colleges, University of Phoenix, is up for sale. Parent company Apollo Education Group announced Monday it is exploring solutions to turn around the struggling school, including possibly selling it altogether. The pentagon has even put the University of Phoenix on probation.

The news comes after the latest earnings report showed Phoenix’s rapid decline is showing no signs of improving. The stock price for Apollo Education Group has declined about 75% in the past year and it’s valuation has dropped from $3.5 billion to just around $750 million in the course of a year.

Like many other for-profit schools, University of Phoenix has been hit hard with declining enrollment, increased scrutiny from federal and state officials, and investigations for predatory practices. Last October, the U.S. military banned the University of Phoenix from receiving military financial aid for students, because the school was engaging in a multitude of deceptive practices such as providing marketing materials with official military seals to portray an official relationship with the military. The college has also been under investigation by the Obama administration recently for it’s deceptive marketing practices.


What You Can Do About It

If you or a loved one who went to the University of Phoenix and is currently experiencing financial hardships because of overwhelming student loan payments you’re not alone. Millions of Americans have fallen victim to unmanageable student loan debts from going to college. According to The Federal Reserve, 37 million Americans currently have student loan debt.

The good news is that the American government has recently passed laws that will give millions of Americans currently struggling with student loan debt much-needed relief.


Find out if you qualify for federal student loan forgiveness

Companies Offer to Cover Student Loans

Companies are discovering a way to bring in more applicants and keep their workforce happier. The solution: Helping workers repay their student loans.

More and more businesses are helping workers refinance their debts by giving them additional cash for loan payments, as well as paying their off lenders. It is an important advantage for millennials -- individuals 35 and under -- to pay off their thousands of dollars of outstanding student debts, especially as they are entering the workforce. The government also offers various federal student loan forgiveness programs that can help them pay off their debt.

That is never as easy as it seems: Many school grads often end up owing multiple lenders and accruing tax consequences along the way.


Big-Name Firms Paying Off Student Debt

Companies also need to ensure this cash goes to the proper location. Only 3 percent of companies helped its workers repay student loans in 2016, based on a survey of more than 460 human resource supervisors performed by the Society for Human Resource Management. But as big-name firms, such as New York-based accounting firm PricewaterhouseCoopers beginning to offer it, more and more companies will start to offer this incentive.

PricewaterhouseCoopers, for example, intends to give certain workers up to $1,200 a year to help pay off their student loan debt. These companies are told by workers that their student debts make it impossible to purchase property or save for retirement.

"Millennials are being destroyed by student debt," said Michael Fenlon, the worldwide talent leader at PricewaterhouseCoopers, which enlisted a startup, Gradifi, to manage the newest advantage.

Others, including Credible SoFi and CommonBond, empower businesses to simply help refinance their workers' student debts with payment plans and more wieldy rates. EdAssist, which has managed tuition payment benefits for companies for approximately nine years, started offering student loan repayments last year.


What Are Millennials Saying About Student Debt?

Millennials surpassed Generation X as being the biggest cohort in the workforce in 2015, as stated by the Pew Research Center. Their choices are improving together with the ever-changing job market. The vast majority say their capability to cover student loans influence their work decisions, in accordance with a survey from the American Student Assistance, a non-profit that helps borrowers manage their student debt.

Lin pays about $150 on ChowNow processors in a different percent, and her debts monthly, about $40. The LA-based firm, which powers program ordering for restaurants and online merchants, intends to raise that, and now pays up to $500 per year per worker

"It is more challenging to hire excellent gift, and this is just another excellent instrument to do this," said Christopher Webb, the CEO of ChowNow, which uses to manage the advantage.

Workers must analyze the advantages attentively. If refinancing, they need to make sure that the terms are not worse than that which they currently pay. People that have national or federal loans may lose perks and protections by changing to other lenders. Also note that loan payments -- like cash -- are now taxable as income.

That could alter in the upcoming year. The Company Involvement in Student Loan Assistance Act, for instance, proposes making up to $5,250 payments for student loan debts tax-free for the worker, and eligible for tax breaks for the company.

With more companies now offering to help pay off student debt, millennials now have more options to lower that ever growing number on their finances. If you have recently taken out a federal student loan, you may qualify for the student loan forgiveness program. Learn more about Federal Student Loan Programs or contact us to speak to one of our senior consultants about your situation. Satisfaction Guaranteed!