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    Trump Seeks to Bar Student Loan Relief to Workers Aiding Migrants and Trans Kids

    President Trump signed an executive order instructing administration officials to alter a student loan forgiveness program for public servants to exclude nonprofit organizations that engage in activities that have what he called a “substantial illegal purpose.”His order to restrict the program appears to target groups supporting undocumented immigrants, diversity initiatives or gender-affirming care for children, among others, as the Trump administration has sought to eliminate federal support for efforts that have drawn right-wing ire.The order, made public on Friday, is the latest of many attempts to overhaul the loan forgiveness program, which has often whipsawed borrowers with rule changes and bureaucratic obstacles.The program, known as Public Service Loan Forgiveness, was created by Congress in 2007 and cannot be eliminated without congressional action, but the Education Department has some leeway to determine how it operates. Mr. Trump’s executive order directed the secretaries of education and the Treasury to amend the program to exclude workers for organizations supporting illegal actions, listing several categories of examples, including “aiding or abetting” violations of federal immigration law.The Trump administration has taken a broad view of what it considers to be support of illegal activities. The order cited as examples organizations that support “illegal discrimination,” which the administration has previously said includes diversity and inclusion initiatives.The order appeared to target groups supporting gender-affirming care. It said it would exclude from the loan forgiveness program any organization supporting “child abuse, including the chemical and surgical castration or mutilation of children.”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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    How Biden Should Spend His Final Weeks in Office

    The days are dwindling to a precious few before President Biden relinquishes his tenancy at the White House to Donald Trump. Four years ago, in his inaugural address, Mr. Biden promised to “press forward with speed and urgency, for we have much to do in this winter of peril and possibility.” The peril remains, but so do the possibilities.Last week he announced that he was commuting the sentences of nearly 1,500 people and pardoning 39 others convicted of nonviolent crimes. Eleven days earlier, in a decision widely criticized, Mr. Biden pardoned his son Hunter, who was awaiting sentencing on gun possession and income tax charges.There is still much the president can do before he repairs to Delaware. He can spare federal death row prisoners from the fate some almost certainly will face when Mr. Trump returns. He can make the Equal Rights Amendment a reality after decades of efforts to enshrine it in the Constitution. He can safeguard magnificent landscapes that might otherwise be desecrated. He can protect undocumented immigrants facing deportation, alleviate crushing student debt facing millions of Americans and protect the reproductive rights of women. And more.New York Times Opinion contributors share what they hope President Biden will accomplish during his remaining time in office.Yes, time is running out for Mr. Biden’s presidency, but he can still repair, restore, heal and build, as he promised he would do on the January day four years ago when he took the oath of office. Here are a few suggestions:Commute the sentences of the 40 federal inmates on death rowBy Martin Luther King IIIBy commuting all federal death sentences to life, Mr. Biden would move America, meaningfully, in the direction of racial reconciliation and equal justice. In 2021 he became the first president to openly oppose capital punishment. Since his inauguration, the federal government has not carried out a single execution.If Mr. Biden does not exercise his constitutional authority to commute the sentences of everyone on federal death row, we will surely see another spate of deeply troubling executions as we did in the first Trump administration. A majority of those executed — 12 men and one woman — were people of color; at least one was convicted by an all-white jury and there was evidence of racial bias in a number of cases; several had presented evidence of intellectual disabilities or severe mental illnesses. The same problems were features in the cases of many of the 40 men on federal death row today, more than half of whom are people of color.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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    Navient Reaches $120 Million Student Loan Settlement With Consumer Watchdog

    The company has been banned from servicing federal student loans and must pay $100 million to harmed borrowers, as well as a $20 million penalty.Navient, formerly one of the nation’s largest student loan servicers, reached a $120 million settlement with federal regulators on Thursday to resolve claims that it misled federal student loan borrowers and mishandled their payments for years.The Consumer Financial Protection Bureau said the deal would permanently ban the company from managing federal student loans and require it to pay $100 million in restitution to affected borrowers along with a $20 million penalty.The consumer watchdog’s suit had accused Navient of failing borrowers at every step of repayment: Among other misdeeds, it said the company steered borrowers away from more affordable income-driven repayment plans and into forbearance, which padded its own profits and forced borrowers to pay more than they had to.“For years, Navient’s top executives profited handsomely by exploiting students and taxpayers,” said Rohit Chopra, the director of the consumer agency. “By banning the notorious student loan giant from federal student loan servicing and ensuring the wind down of these operations, the C.F.P.B. will finally put an end to the years of abuse.”During a media call, agency officials said borrowers who were eligible for restitution payments did not need to do anything — the C.F.P.B. would mail checks to “hundreds of thousands” of federal student loan borrowers, after it analyzed which consumers were due payments. It’s unclear how long that will take. (The agency also warned borrowers to beware of scammers who might try to use C.F.P.B. imagery to steal money or private information.)The settlement closes the book on two related legal actions that date back to 2017, when the consumer protection agency and two state attorneys general — later backed by a coalition of attorneys general in 27 other states — sued Navient.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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    Young Americans Can’t Keep Funding Boomers and Beyond

    You know the expression “OK, Boomer”? Better said as “Boomer OK.” That’s because the social safety net in the United States is increasingly favoring the old over the young. And this affects our political views and the security of future generations.Younger Americans have valid reason for disgruntlement: Big shifts in income and wealth are dramatically favoring their elders. Under almost every president since 1980, 80 percent of the real growth in domestic spending has gone to Social Security and health care, with Medicare the most expensive health program, according to calculations based on federal data. As a share of GDP, all other domestic outlays combined have declined.Our current tax system also largely does not help Americans, most of whom are younger, pay for their higher education. That wasn’t as big a deal in the 1960s or 1970s, when the average college graduate most likely had little or no student debt. Today, the average taken out each year is about seven times that in 1971, in part because state governments have stripped colleges and universities of funding. This is happening at a time when owning a house is increasingly out of reach. The median price has risen from about 3.5 times median annual income in 1984 to 5.8 times in 2022.So it shouldn’t come as a surprise that today, younger generations are more likely to fall into lower-income classes than their parents or grandparents. Nearly a half century ago, it was the reverse. And in 1989, the median net worth of Americans aged 35 to 44 was nearly 75 percent of those aged 65 to 74. By 2022, that ratio had fallen to one-third.The why is simple. Unlike most other spending, Congress effectively designed Medicare in 1965 and Social Security in the 1970s in such a way that outlays would increase forever faster than our national income. That’s partly because Medicare costs keep rising along with medical prices and new treatments and because Social Security benefits are designed to increase for each new generation along with inflation and wages. And we’re living longer, which means more years of benefits.Today, tax revenues are so committed to mandatory spending, largely for older Americans, and to interest on the national debt (which has quadrupled as a share of G.D.P. since 1980) that few revenues are left for everything else. So, unless we borrow to pay for it, there’s little for education, infrastructure, environment, affordable housing, reducing poverty, or the military.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.

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

    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

    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.

    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