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      Leadership Failures Helped Lead to FAFSA Debacle, Watchdog Finds

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      Two reports by the Government Accountability Office found that mismanagement and wildly unrealistic projections derailed the student aid application process this year.Leaders in the Education Department systematically failed to manage deadlines and badly underestimated technical shortcomings while overhauling the Free Application for Federal Student Aid, according to a pair of damaging reports released by the Government Accountability Office on Tuesday.The reports provide new insight into a breakdown that is already painfully familiar to thousands of students and families, who struggled for much of this year to get an accurate estimate of how much they would need to pay for college because of glitches in the application form, known as FAFSA.Signs of trouble with FAFSA started around this time last year, when students typically can begin to submit their household’s financial data to the government, which in turn helps calculate financial aid offers.By January, many students found themselves running into a variety of bugs and data entry problems that locked them out of the form, produced an inaccurate summary of their finances or otherwise prevented them from applying.Many findings in the reports released on Tuesday, including how the Education Department struggled to manage contractors it hired to help build the form, have been publicly known for some time through reporting and several congressional inquiries.But the accountability office’s findings highlighted startling details about just how poorly the department underestimated the problems that would affect families and force college administrators to sort out discrepancies through much of this summer.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

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      Where Does Biden’s Student Loan Debt Plan Stand? Here’s What to Know.

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      The Supreme Court refused to allow a key part of President Biden’s student debt plan to move forward. Here’s what’s left of it, and who could still benefit.President Biden’s latest effort to wipe out student loan debt for millions of Americans is in jeopardy.The Supreme Court on Wednesday refused to allow a key component of the policy, known as the SAVE plan, to move forward after an emergency application by the Biden administration.Until Republican-led states sued to block the plan over the summer, SAVE had been the main way for borrowers to apply for loan forgiveness. The program allowed people to make payments based on income and family size; some borrowers ended up having their remaining debt canceled altogether.Other elements of Mr. Biden’s loan forgiveness plan remain in effect for now. And over the course of Mr. Biden’s presidency, his administration has canceled about $167 billion in loans for 4.75 million people, or roughly one in 10 federal loan holders.But Wednesday’s decision leaves millions of Americans in limbo.Here is a look at what the ruling means for borrowers and what happens next:Who was eligible for SAVE?Most people with federal undergraduate or graduate loans could apply for forgiveness under SAVE, which stands for Saving on a Valuable Education.But the amount of relief it provided varied depending on factors such as income and family size. More than eight million people enrolled in the program during the roughly 10 months that it was available, and about 400,000 of them got some amount of debt canceled.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

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      Supreme Court, for Now, Blocks Protections for Transgender Students in Some States

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      The order maintained halts by lower courts on federal rules prohibiting discrimination against transgender people in schools.The Supreme Court on Friday temporarily continued to block Education Department rules intended to protect transgender students from discrimination based on their gender identity in several Republican states that had mounted challenges.The emergency order allowed rulings by lower courts in Louisiana and Kentucky to remain in effect in about 10 states as litigation moves forward, maintaining a pause on new federal guidelines expanding protections for transgender students that had been enacted in nearly half the country on Aug. 1.The order came in response to a challenge by the Biden administration, which asked the Supreme Court to intervene after a number of Republican-led states sought to overturn the new rules.The decision was unsigned, as is typical in such emergency petitions. But all nine members of the court said that parts of the new rules — including the protections for transgender students — should not go into effect until the legal challenges are resolved.“Importantly,” the unsigned order said, “all members of the court today accept that the plaintiffs were entitled to preliminary injunctive relief as to three provisions of the rule, including the central provision that newly defines sex discrimination to include discrimination on the basis of sexual orientation and gender identity.”The decision handed a victory to the Republican-led states that had challenged the rules. A patchwork of lower court decisions means that the rules are temporarily paused in about 26 states.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

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      What Happens to Biden’s Student Loan Repayment Plan After Court Rulings?

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      More than eight million borrowers are enrolled in the income-driven plan known as SAVE. The Education Department is assessing the rulings.President Biden’s new student loan repayment plan was hobbled on Monday after two federal judges in Kansas and Missouri issued separate rulings that temporarily blocked some of the plan’s benefits, leaving questions about its fate.The preliminary injunctions, which suspend parts of the program known as SAVE, leave millions of borrowers in limbo until lawsuits filed by two groups of Republican-led states challenging the legality of the plan are decided.That means the Biden administration cannot reduce borrowers’ monthly bills by as much as half starting July 1, as had been scheduled, and it must pause debt forgiveness to SAVE enrollees. The administration has canceled $5.5 billion in debt for more than 414,000 borrowers through the plan, which opened in August.If you’re among the eight million borrowers making payments through SAVE — the Saving on a Valuable Education plan — you probably have many questions. Here’s what we know so far, though the Education Department has yet to release its official guidance.Let’s back up for a minute. What does SAVE do?Like the income-driven repayment plans that came before it, the SAVE program ties borrowers’ monthly payments to their income and household size. After payments are made for a certain period of years, generally 20 or 25, any remaining debt is canceled. But the SAVE plan — which replaced the Revised Pay as You Earn program, or REPAYE — is more generous than its predecessor plans in several ways.Ask us your questions about the SAVE student loan repayment plan.

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      Parts of Biden’s Student Loan Repayment Plan Blocked by Judges

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      A part of the SAVE plan that would have cut monthly bills for millions of borrowers starting on July 1 was put on hold.Two federal judges in Kansas and Missouri temporarily blocked pieces of the Biden administration’s new student loan repayment plan on Monday in rulings that will have implications for millions of federal borrowers.Borrowers enrolled in the income-driven repayment plan, known as SAVE, are expected to continue to make payments. But those with undergraduate debt will no longer see their payments cut in half starting on July 1, a huge disappointment for borrowers who may have been counting on that relief.The separate preliminary injunctions on Monday are tied to lawsuits filed this year by two groups of Republican-led states seeking to upend the SAVE program, a centerpiece of President Biden’s agenda to provide relief to student borrowers. Many of the program’s challengers are the same ones that filed suit against Mr. Biden’s $400 million debt-cancellation plan, which the Supreme Court struck down last June.“All of this is an absolute mess for borrowers, and it’s pretty shocking that state public officials asked the courts to prevent the Biden administration from offering more affordable loan payments to their residents at time when so many Americans are struggling with high prices,” said Abby Shafroth, co-director of advocacy at the National Consumer Law Center. “It’s a pretty cynical ploy in an election year to stop the current president from being able to lower prices for working and middle-class Americans.”Eleven states led by Kansas filed a lawsuit challenging the SAVE program in late March in U.S. District Court for the District of Kansas. The next month, Missouri and six other states sued in U.S. District Court for the Eastern District of Missouri. Both suits argued that the administration had again exceeded its authority, and that the repayment plan was a backhanded attempt to wipe debts clean.The SAVE program, which has enrolled eight million borrowers since it opened in August, isn’t a new idea. It’s based on a roughly 30-year-old design that ties monthly payments to a borrower’s income and household size. But SAVE has more generous terms than previous plans and a heftier price tag. More than four million borrowers qualify for a $0 monthly payment.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

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      There’s a Program to Cancel Private Student Debt. Most Don’t Know About It.

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      More than a million borrowers who were defrauded by for-profit schools have had billions of dollars in federal student loans eliminated through a government aid program. But people with private loans have generally been excluded from any relief — until recently.Navient, a large owner of private student loan debt, has created, but not publicized, a program that allows borrowers to apply to have their loans forgiven. Some who succeeded have jubilantly shared their stories in chat groups and other forums.“I cried, a lot,” said Danielle Maynard, who recently received notice from Navient that nearly $40,000 in private loans she owed for her studies at the New England Institute of Art in Brookline, Mass., would be wiped out.Navient, based in Wilmington, Del., has not publicized the discharge program that helped Ms. Maynard. Other borrowers have complained on social media about difficulties getting an application form. When asked about the program and the criticisms, a company spokesman said, “Borrowers may contact us at any time, and our advocates can assist.”So a nonprofit group of lawyers has stepped in ease the process: On Thursday, the Project on Predatory Student Lending, an advocacy group in Boston, published Navient’s application form and an instruction guide for borrowers with private loans who are seeking relief on the grounds that their school lied to them.“We want to level the playing field and let people know, instead of having it be this closely held secret,” said Eileen Connor, the group’s director.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

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      Biden Cancels $6.1 Billion in Debt for Former Art Institute Students

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      The announcement covers 317,000 former students and marks another step in the administration’s student loan relief efforts.The Biden administration on Wednesday canceled more than $6 billion in student debt for 317,000 people who attended the Art Institutes, a now-defunct network of for-profit colleges that President Biden said “knowingly misled” students.After a review of lawsuits brought by state attorneys general against the schools and their parent company, Education Management Corporation, the Education Department found that the Art Institutes falsified job placement figures in advertisements and misled prospective students with inflated salary expectations.In one case the department highlighted, an Art Institute campus in Florida appeared to have included the tennis star Serena Williams’s annual income in its graduate salary projections after she had attended classes there.“This institution falsified data, knowingly misled students and cheated borrowers into taking on mountains of debt without leading to promising career prospects at the end of their studies,” President Biden said in a statement.He also took a swipe at former President Donald J. Trump, whom he accused of ignoring the influence of predatory for-profit schools on students seeking what they believed were meaningful academic credentials.“While my predecessor looked the other way when colleges defrauded students and borrowers, I promised to take this on directly to provide borrowers with the relief they need and deserve,” Mr. Biden said.The president’s decision to cancel the student debt was another step in his pursuit of student loan forgiveness in the year since the Supreme Court struck down a far more ambitious plan to wipe out more than $400 billion in debt.Mr. Biden said last month that he would make another attempt at large-scale debt forgiveness for more than 25 million people, despite opposition from Republicans, who say it would be unfair to borrowers who struggled to pay off their student debt without assistance.In the meantime, the administration has forgiven about $160 billion in debt for 4.6 million borrowers by fixing and streamlining existing programs that have been plagued by bureaucratic and other problems for years.The action covers students who attended Art Institute schools between Jan. 1, 2004, and Oct. 16, 2017. The department said borrowers would be notified starting on Wednesday that they had been approved and would see their debt canceled automatically.Forgiving federal student loans for borrowers who the administration has determined were preyed on by their schools has emerged as one part of the administration’s student debt relief strategy, using its authority under an existing program known as borrower defense to repayment. To date, the administration has approved $28.7 billion in debt forgiveness for some 1.6 million borrowers whose institutions engaged in misleading practices or shut down.“In addition to providing critical relief to students, we need to hold wrongdoers accountable — otherwise, executives will continue to exploit students for their own benefit,” said Aaron Ament, the president of the National Student Legal Defense Network, which has represented former Art Institute students since 2018. More

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      $7.4 Billion More in Student Loans Are Canceled, Biden Administration Says

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      The announcement is the latest in a piecemeal approach the White House is using to target more specific subsets of borrowers.The Biden administration announced an additional $7.4 billion in student loan cancellations for some 277,000 borrowers on Friday, building on plans announced earlier this week to provide debt relief for millions of borrowers by the fall if new rules the White House has put forward hold.The latest round of relief reflects a strategy the White House has embraced by taking smaller, targeted actions for subsets of borrowers that it hopes will add up to a significant result, after a larger plan to wipe out more than $400 billion in debt was struck down by the Supreme Court last year.It also comes as President Biden aims to shore up support with young voters who may be disproportionately affected by soaring education costs, but who may be drifting away over his policy on Israel and the war in Gaza.Taken together with previous actions, the announcement on Friday brought the total to $153 billion in debt forgiven, touching around 4.3 million borrowers so far, the administration said. The administration hopes to forgive some or all loans held by some 30 million borrowers total. The administration said the 277,000 people it identified would be notified by email on Friday.“We’ve approved help for roughly one out of 10 of the 43 million Americans who have federal student loans,” Miguel A. Cardona, the education secretary, told reporters ahead of the announcement.The new round of cancellations involves three categories of borrowers who qualified under existing programs, with the bulk of the forgiveness going to around 207,000 people who borrowed relatively small amounts — $12,000 or less — and were enrolled in the administration’s income-driven repayment plan, known as SAVE.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More