studentloan Archives - Page 2 of 3

June 7, 2022

A federal judge just denied a student-loan borrower’s request to postpone her $95,000 debt cancellation hearing as she undergoes cancer treatment

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In March, a choose agreed to postpone Heather Smart’s pupil-financial loan bankruptcy hearing due to healthcare therapy.
But he just dominated she must progress with her demo unless of course she can establish she is medically unable.
Biden promised to reform the individual bankruptcy procedure, but it really is continuing to be a burden for debtors.

3 months in the past, a federal decide dominated Heather Wise can postpone her listening to to get rid of her student personal debt by way of individual bankruptcy as she undergoes most cancers treatment. Now, that same choose says it is really time for Wise to go to courtroom.

Clever submitted for individual bankruptcy of her $95,181.92 university student credit card debt load in December due to the fact of unemployment induced by “obtaining extensive medical care and therapy for myriad troubles relating to several varieties of aggressive and invasive cancer, as effectively as a blood problem,” according to a courtroom submitting. She claimed her problem prevented her from building adequate revenue to shell out off her loans.

The Training Office wrote at the time that Wise did not qualify for bankruptcy discharge for the reason that when her “overall health increases, she has college or university degrees and is capable of protecting total-time employment and can sustain an ideal regular of living although repaying her loans.” But a US individual bankruptcy choose for the Southern District of Texas permitted her to postpone her hearing although she was going through treatment plans.

Past 7 days, Smart asked for more postponement of her hearings due to the fact she “is at this time in the prolonged method of diagnosing, planning, and executing a treatment method system for myriad healthcare difficulties,” together with cancer and a blood disorder, per the court docket submitting. She is waiting around to uncover out regardless of whether her disability is lasting, which could noticeably impression the outcome of her student-bank loan reimbursement.

The decide denied Smart’s ask for.

“Demo in this circumstance has been set and then reset on many occasions,” Judge Jeffrey Norman wrote. “This make any difference will have to be concluded. An indefinite suspension does not do justice.”

He added that the courtroom will look at an extension of the demo date only if Clever “is medically unable to participate pretty much,” and she ought to verify that incapacity by “responsible proof and give an estimate of when she will be able to show up for trial.”

Given that Wise could not provide evidence of her health-related issue at the time thanks to her physicians being unavailable, she asked for time to re-file claims, and the decide granted her that request.

The Training Section also granted Clever a Cancer Treatment Deferment on her financial loans, that means she is not necessary to pay back off her debt via October 2023 and desire will not increase — but even being in extensive-time period deferment, the decide is even now requesting she carry on with the demo.

Proving individual bankruptcy on college student financial loans in courtroom is no effortless feat. The borrower have to show an “undue hardship” standard, that calls for them to show that they simply cannot keep a negligible regular of dwelling, their circumstances will possible not make improvements to, and they have built a great-religion hard work in repaying their financial debt. But successfully assembly that conventional is scarce and lots of borrowers have been blocked from reduction due to the fact of it, which is why Biden’s administration promised to reform the personal bankruptcy method.

“The course of action doesn’t work well. It wants to be reformed … and we are dedicated to performing that,” Federal University student Support head Richard Cordray instructed a Dwelling education subcommittee previous fall. “There have been discussions presently with the Justice Section. They, too, are ready to have us revise our strategy.”

Due to the fact then, even though, the Schooling Section has ongoing to oppose borrowers’ discharge requests in court docket. Underneath Secretary of Training James Kvaal said throughout a digital discussion on university student personal debt on Monday that “Secretary Cardona has reported we want to assessment that policy, and that is one thing that is underway now. There is an interagency procedure for that, it truly is not solely inside the department’s discretion, and we’re working pretty difficult on that. essentially.”

But advocates say the approach needs to be sped up. Dan Zibel, vice president and chief counsel of Student Protection — an corporation that advocates for borrowers’ rights — explained in a assertion that “time soon after time, we proceed to see the authorities erecting boundaries that make it harder for bankrupt borrowers trying to get a discharge of their scholar loans.”

“Though the Section of Education and learning has publicly acknowledged the challenges, to date, we have found minor in phrases of concrete plan modifications, and borrowers dealing with severe hardship are shelling out the value,” Zibel explained. “Adequate is sufficient.”

Read through the first short article on Business enterprise Insider

June 1, 2022

Biden can and should target student-loan debt forgiveness

When it comes to the catastrophe that is our scholar mortgage procedure, some credit card debt forgiveness will certainly be section of the resolution. Millions are in default on their financial loans. Many just cannot afford to pay for to pay. Other borrowers struggle with debts for degrees they did not entire or unsuccessful to direct to a superior job. In a lot of conditions, trying to accumulate on terrible financial loans is not really worth the price to taxpayers or hardship imposed on borrowers. Pupil financial loans should really be a automobile for economic opportunity, not a economic existence sentence.

So the plan challenge is not whether to forgive some credit card debt, but how and for whom. Debt forgiveness could be an possibility to redress failures of the existing program, make higher education financing additional reasonable and equitable, and deliver hope not just for existing borrowers, but also to foreseeable future college students who will borrow to pay back for college or university and graduate university. Tomorrow’s college students require self esteem the federal government has a strategy to help them, much too.

But popular, fast, and one-off debt forgiveness—$10,000 for everybody, no matter of situation, ignoring that college students are heading to borrow yet another $100 billion upcoming year—doesn’t carry out any of those objectives. But a focused, gradual method to personal debt forgiveness could.

1-off, across-the-board forgiveness is capricious and unfair

Widespread personal debt forgiveness is not equitable simply because pupil credit card debt is largely owed by greater-profits, far better-educated debtors, from affluent, typically white backgrounds. Eligibility for federal financial loans is not based mostly on money—virtually all American pupils are eligible—and financial loans can be a effortless and low-cost way to finance tuition or dwelling expenditures even for family members who can “afford to fork out.” As a end result, who owes college student personal debt and how a lot they owe generally reflects who goes to higher education, regardless of whether they complete faculty and go to graduate faculty, and no matter if they show up at an expensive college.

Superior-cash flow families are 6 times a lot more very likely to mail their small children to university as reduced-income households. If you satisfy anyone with a modern graduate degree, far more than 50 {ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} grew up in a higher-cash flow family. Black and Hispanic People continue to be woefully underrepresented at each individual level of postsecondary educational attainment and are considerably less possible to complete levels. A lot of student bank loan debtors do very well after college—the wages of younger college or university and expert-degree graduates are at all-time highs. Forgiving debt of affluent, superior-income, properly-educated, mostly white People makes society additional unequal, not significantly less.

1-off, throughout-the-board forgiveness is capricious and unfair in other methods. Why does an Ivy-league experienced-degree graduate deserve the same aid as a student who pursued a low-value group higher education diploma? Why ought to the course of 2022 get a windfall, but not pupils who enroll future year? Why really should a borrower who used years having to pay down a harmony get the similar or a lot less than somebody who graduated yesterday?

Pupils borrow shut to $100 billion just about every calendar year but are eligible to borrow about three situations as considerably, so the precedent issues for how much future students borrow and repay, not to mention how significantly colleges demand. As flawed as the current program is, it can get worse.

In his campaign, President Biden explained an enduring reform that incorporated increased grant aid for low- and middle-money students, funding to minimize tuition at community faculties, and a far more forgiving revenue-pushed compensation (IDR) system. That eyesight expands on our broadly-supported process of Pell grants and guidance for community faculties, but it also reflects some tough truths: There is no situation for taxpayers subsidizing sky-high personal college tuition, small children from significant-earnings family members, or graduate and professional degrees.

Completed very well, financial debt forgiveness could progress that eyesight.

So the coverage problem is not whether to forgive some credit card debt, but how and for whom.

Biden proposed doubling the utmost Pell grant from its recent $6,500 level. He could forgive a equivalent volume of financial debt for present small-income and middle-money borrowers and promise to do so every single year for future minimal-revenue borrowers in scenario Congress does not act on his proposal. Concentrating on support centered on data the Section of Education now maintains from economic aid sorts (like household earnings and Pell eligibility) and no matter if the scholar was an undergraduate is extra expedient than seeking to cap forgiveness based on present earnings. Making use of these measures to concentrate on reduction would be progressive and cost-powerful. Pell grant recipients, following all, characterize 90 per cent of borrowers who default on a college student mortgage. And proposing to offer the similar assist spending for school for equally earlier and foreseeable future students would be coherent and reasonable.

No free faculty approach contemplates cost-free graduate university or backed tuition at high priced faculties or for superior-profits households. Individuals students—past and future—should anticipate to commence repaying their financial loans. Biden’s administration is at present utilizing new IDR options and a clean commence for defaulted debtors, which will ease the load on debtors and speed up personal loan forgiveness Congress enacted. All those procedures will support long run and present borrowers alike. Mortgage repayment need not begin instantly Biden’s new regulatory policies really should be in put very first.

The most effective way to focus on aid to having difficulties borrowers is through IDR plans, which calibrate personal loan repayment to borrowers’ incomes and forgive remaining money owed immediately after 20 or 25 many years. Gaps in university student personal loan debt widen after graduation by race, financial position, and parental education and learning, as well off debtors shell out down their financial loans though other individuals can’t. That will make IDR’s eventual forgiveness hugely targeted to deprived teams and extra progressive than across-the-board reduction.

IDR programs had been enacted too recently and executed so poorly, on the other hand, that pretty much no debtors have nonetheless to obtain forgiveness. Millions a lot more borrowers accumulated desire and charges or defaulted on financial loans in the absence of IDR’s protections. Biden could use personal debt aid to fix that, also, and in carrying out so instill new confidence that these courses will operate for foreseeable future college students. For example, Biden could present relief primarily based on a long time in reimbursement (e.g., forgiving some amount for just about every yr in repayment beyond 10 yrs, so debtors who graduated very long back received the most aid) or forgiving balances in excessive of the unique principal equilibrium (and disposing of gathered desire and expenses) or forgiving remaining money owed of borrowers whose cumulative payments exceeded the quantities they need to have compensated beneath a regular approach. These solutions would be remarkably focused to debtors who have struggled with their loans in excess of quite a few several years, would dispose of financial loans that were unlikely to be compensated in any other case, and could mirror the support that long term debtors could assume from revamped IDR designs. Some borrowers would get significantly less than $10,000 and some would get much more, commensurate with their circumstance. Potential borrowers would have more self confidence the authorities intends to make the IDR method perform for them, as well.

A normal criticism of qualified insurance policies is that they are far too intricate or that the government just can’t be trustworthy to apply them. Individuals criticisms are way too real when it will come to the record of college student lending. By implementing a focused policy quickly and successfully with data the Department of Training currently collects for this objective, Biden can restore belief that the government can get nuanced guidelines proper. People need a pupil lending method to work in the upcoming, to command broad, bipartisan guidance, and be economically sustainable. A specific, coherent, and purposeful mortgage aid coverage could be stage toward that aim.

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March 6, 2022

Biden Continues Fighting Student-Loan Borrowers in Bankruptcy Court

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The Biden administration has pledged to reform the student-loan personal bankruptcy system.
Nevertheless, the Training Section is opposing borrowers’ requests in court.
Advocates are urging the section to halt oppositions right up until it can implement the reforms.

Rosa Perez submitted for bankruptcy on her $78,000 scholar-financial debt load in January.

As a community-university counselor, Perez has a month-to-month earnings of about $3,400, which she reported in a court docket filing was around equal to her regular charges. Along with shelling out for her daughter’s charges — she stated she been given no kid assistance from her daughter’s father — Perez has coronary heart issues that have led to massive healthcare costs, she stated.

Perez’s fees “are as conservative as they can maybe be, and she continue to is unable to satisfy her regular charges, without any capacity to make a payment on the College student Loans below their phrases,” the submitting stated.

Perez requested a discharge of her financial loans as a result of individual bankruptcy, but on Monday the Education and learning Department opposed her ask for. It was 1 of the most up-to-date illustrations highlighting how, irrespective of promising reforms, President Joe Biden’s administration is continuing to combat borrowers in courtroom.

University student-bank loan borrowers convert to individual bankruptcy when they sense they have no other way to pay out off their debts. Their most important problem is the “undue hardship” standard that Biden helped enact in 2005 it calls for debtors to confirm that they are not able to keep a minimum typical of dwelling, that their conditions aren’t possible to enhance, and that they have manufactured a very good-faith energy to repay their personal debt.

Richard Cordray, the head of the federal student-help office, explained to Congress in Oct that he would do the job to reform the individual bankruptcy course of action and make sure that borrowers who need reduction can access it. Considering that then, the Schooling Office has prevented various borrowers from getting the financial debt forgiveness they sought.

“The process won’t do the job perfectly. It desires to be reformed … and we’re fully commited to undertaking that,” Cordray informed a Dwelling education and learning subcommittee past slide. “There have been conversations already with the Justice Office. They, far too, are prepared to have us revise our method.”

Now some lawmakers and advocates are getting antsy — especially as the Training Department carries on to oppose borrowers’ instances in courtroom.

The Education and learning Division has taken techniques to block borrowers’ college student-financial loan forgiveness

In January, Ryan Wolfson, 35, was granted discharge of his practically $100,000 pupil-personal debt load right after a choose dominated that he’d proved undue hardship. Two months later, the Education and learning Office appealed the scenario. Just a single day later, though, the office withdrew its appeal.

“The Department of Schooling has indicated publicly that it is reviewing present-day personal bankruptcy procedures, a procedure which remains ongoing,” a section spokesperson informed Insider at the time. “Whilst the student-financial loan-payment pause stays in result, any borrower in an adversary personal bankruptcy proceeding can ask for and get a stay on their proceedings,” the spokesperson extra.

Alongside with appeals, the section has continued to file solutions opposing borrowers’ requests to discharge their personal debt. On Thursday, the division opposed a discharge request from a 77-calendar year-aged former nurse who couldn’t get bank loan forgiveness via the Public Services Financial loan Forgiveness software, designed to wipe out personal debt for community servants immediately after 10 decades of qualifying payments.

Specified that the office oversees federal scholar loans, its opposition isn’t really unanticipated. But although it has said it would evaluate personal bankruptcy discharges on a scenario-by-circumstance basis, some advocates and lawmakers want no oppositions until the administration implements reforms.

Pupil Defense, an group that advocates borrower protections, not too long ago joined 16 other advocacy groups in calling on the division to “quickly withdraw oppositions to people trying to get undue hardship discharges in personal bankruptcy proceedings whilst these reforms are becoming implemented.”

And Senate Greater part Leader Chuck Schumer explained in reaction to a concern from The Daily Poster at a press meeting in February that he “certainly” supported a moratorium on oppositions.

“It is outrageous that other people get to declare personal bankruptcy but pupils can’t,” Schumer said.

An Instruction Division spokesperson did not say no matter if the office would take into account halting opposition altogether, but told Insider that “borrowers in economic distress really should have the capability to discharge their scholar financial loans through individual bankruptcy, but far too often the procedure prospects to unfair final results. The Division of Training is fully commited to revising its strategy to personal bankruptcy to streamline the approach and assure that borrowers get a fair shot.”

“In the meantime, ED and the Justice Department are doing work to make certain that the federal government does not attractiveness personal bankruptcy circumstances where by the borrower has tested an undue hardship,” the spokesperson added.

Continue to, advocates are hoping debtors will not continue to experience pushback on their requests for relief.

“Although we strongly welcome the Department’s motivation to transform how it treats university student bank loan debtors in personal bankruptcy, in the meantime, it continues to oppose discharges for cancer clients, struggling grandparents and community school workforce with significant professional medical problems,” Aaron Ament, the president of University student Defense, informed Insider. “We be part of Senator Schumer in calling for a moratorium on opposing university student debtors in personal bankruptcy until the Department implements new procedures that place the passions of college student debtors very first.”

February 2, 2022

It’ll Be ‘a Challenge to Motivate’ Student-Loan Borrowers in May: DOE

Student-loan payments are resuming in 90 times right after a two-calendar year pause.
The Training Office claimed it would be “a challenge” to get borrowers to fork out their payments all over again.
The department will keep on outreach to borrowers, even as advocates contact for financial debt cancellation.

It is really no mystery that restarting college student-financial loan payments after a two-year pause will be complicated — and the Education and learning Section reported that was the actuality for both alone and debtors.

The Governing administration Accountability Place of work, a government watchdog that oversees federal investing and performance, produced a report very last 7 days analyzing the results of restarting pupil-mortgage payments on Could 1.

President Joe Biden extended the pause on payments for the 3rd time in December. Although he did not explicitly say it would be the “closing” extension, as he did in August, he mentioned borrowers should really “do their part” in getting ready to resume their debt payments.

The GAO explained Schooling Department officers “anticipate it will nonetheless be a obstacle to motivate debtors to resume repaying their loans following over two many years of payment inactivity.”

“In addition, immediately after months of informing borrowers that payments would resume in February 2022, Education’s outreach endeavours ought to now change in direction of planning debtors for the new Might 2, 2022, get started date soon after the most modern extension of mortgage relief,” the GAO extra.

To handle the “problem” of transitioning 43 million federal borrowers back again into repayment, the GAO reported the Instruction Office emailed a whole of 125.6 million regular monthly messages to about 34.9 million borrowers from August to November. As of December, it experienced legitimate e mail addresses for 87{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} of debtors affected by the payment pause. It strategies to continue on e mail outreach to be certain borrowers are knowledgeable of the May well 1 restart date.

It will also get to out to specified borrowers, which includes these at greater possibility of falling driving on payments, all those in default on their financial loans, and these who experienced automatically paid their bills right before the payment pause. Insider reported past week that the GAO observed 50{ac23b82de22bd478cde2a3afa9e55fd5f696f5668b46466ac4c8be2ee1b69550} of federal-student-personal loan borrowers had been discovered as at risk of slipping guiding when payments resume.

Prior to the 3rd payment-pause extension, Richard Cordray, the Education and learning Department’s head of federal student support, said troubles would occur when payments have been established to resume on February 1. He reported in September that transitioning tens of thousands and thousands of college student-personal loan borrowers again into repayment would be a considerable problem and that the several extensions of the payment pause sowed “large confusion about what even the quick upcoming may perhaps hold.”

“The previous expressing is that ‘the wish is father of the imagined,’ and we can anticipate that several, several borrowers will not be eager to return to reimbursement when they have been led to believe that, or even to hope, that was in no way likely to occur,” Cordray reported. “Acquiring around that psychological hurdle with hundreds of thousands of Us residents may be a a great deal more durable occupation than we know.”

Even so, the Biden administration has been very clear in its messaging that borrowers need to program to restart payments in 90 times, although lawmakers and advocates say that if the pause can retain being prolonged, there is no explanation pupil personal debt are not able to be canceled altogether.

January 5, 2022

Biden Asks Student-Loan Borrowers ‘Do Their Part’ to Prep for Payments

Biden prolonged a pupil-loan-payment pause an extra a few months by means of May 1.
He reported debtors should use this further time to put together for the resumption of payments.
But some lawmakers and advocates stated this more time must be made use of to terminate student credit card debt.

President Joe Biden gave 43 million federal student-personal loan borrowers a Christmas present of 3 extra months of relief very last thirty day period.

Though the president said borrowers need to use that excess time to put together for payments to resume on May 1, some lawmakers and advocates said it must in its place be used to terminate college student debt.

On December 22, the Education and learning Department announced it will be moving the day college student-financial loan payments are scheduled to resume from February 1 to May perhaps 1, citing the Omicron coronavirus variant as the principal cause for the change. Though this announcement did not specify whether it would be the “ultimate” extension, contrasting the announcement in August, Biden urged federal borrowers in a assertion to use the added time to get ready for repayment in 90 days.

“As we are taking this action, I’m asking all scholar mortgage debtors to do their component as well: just take entire benefit of the Office of Education’s resources to enable you prepare for payments to resume seem at options to reduce your payments as a result of cash flow-centered compensation plans explore public support mortgage forgiveness and make guaranteed you are vaccinated and boosted when eligible,” Biden said in December.

Education Secretary Miguel Cardona echoed that sentiment, expressing in a statement the division will “continue on to deliver instruments and supports to debtors so they can enter into the repayment strategy that is responsive to their financial condition, such as an money-driven reimbursement program.”

This extension will come together with the approximately $12 billion in pupil debt Biden has canceled for qualified groups of debtors, this sort of as these defrauded by for-financial gain schools, since he took business. But advocates and some lawmakers say it really is not adequate to deal with the $1.7 trillion disaster.

‘Americans are not able to be crushed by student debt’ all through COVID-19

Primary lawmakers on wide university student-financial debt cancellation applauded Biden’s extension of the payment pause. Senate The greater part Leader Chuck Schumer, Massachusetts Sen. Elizabeth Warren, and Massachusetts Rep. Ayanna Pressley explained in a statement that the pause allowed borrowers to “make ends satisfy” and find the money for simple necessities, but they however want Biden to provide on his campaign promise of personal loan forgiveness.

“We keep on to connect with on President Biden to acquire government action to cancel $50,000 in college student financial debt, which will assistance near the racial prosperity gap for borrowers and speed up our economic restoration,” the lawmakers said.

—Chuck Schumer (@SenSchumer) December 23, 2021

College student-loan forgiveness advocates agreed. Natalia Abrams, president of the University student Credit card debt Crisis Centre, stated in a statement the Omicron variant is “a frightening reminder that the pandemic is still a significant concern and Individuals are not able to be crushed by scholar credit card debt as they shoulder this wellness and financial crisis.”

Although Biden promised during his marketing campaign to approve $10,000 in pupil-mortgage forgiveness, he has but to satisfy that promise, and some lawmakers mentioned it could cost Democrats the greater part in the 2022 midterm elections. New York Rep. Alexandria Ocasio-Cortez stated last month that it truly is “truly delusional” to believe Democrats can get re-elected if they don’t act on priorities for voters, like student credit card debt.

Vice President Kamala Harris responded to advocates’ worries in a “Encounter the Nation” job interview late previous thirty day period, saying the administration ought to continue on to be “vigilant” on the matter, but she did not offer a particular way to get reduction to debtors.

“Perfectly, I feel that we have to continue on to do what we’re performing and determine out how we can creatively alleviate the tension that students are sensation for the reason that of their pupil-financial loan credit card debt,” Harris said.

How does the college student-mortgage payment pause extension effect you? Share your story with Ayelet Sheffey at asheffey@insider.com.

November 24, 2021

5.6 Million Student-Loan Borrowers Facing ‘Abusive Practices’: Warren

Navient, which holds 5.6 million student-loan borrowers’ accounts, is ending its services this year.
Sen. Elizabeth Warren wants to ensure those borrowers aren’t subject to abuse under the new company, Maximus.
Warren requested information from Maximus on how it will ensure a seamless transition for borrowers.

There’s a new student loan servicer in town, and Massachusetts Sen. Elizabeth Warren wants to keep them honest.

On Monday, Warren led four of her Democratic colleagues, including Ohio Sen. Sherrod Brown, in sending a letter to Maximus, the company that is taking over 5.6 million borrowers’ accounts after Navient concludes its federal loan servicing contract in December. While Warren told Insider in September that the student-loan industry will be “far better off” without Navient, citing its decades of abusive practices, the progressive senator has concerns with how Maximus will handle millions of new borrowers.

“It is critically important that your company perform at a high bar and with increased transparency to provide the best possible service to borrowers and end a history of loan servicer abuses,” the lawmakers wrote to Maximus’ CEO Bruce Caswell.

Navient CEO Jack Remondi said in a statement in September that “Navient is pleased to work with the Department of Education and Maximus to provide a smooth transition to borrowers and Navient employees as we continue our focus on areas outside of government student loan servicing.”

As the lawmakers noted in the letter, Maximus has handled the loans of over 1.7 million borrowers in default since 2019, and its record “raises concerns that borrowers may be subject to poor service and abusive practices.” For example, a 2015 audit found Maximus had failed to address needed modifications to the defaulted loan servicing platform it manages, leading borrowers to have their wages garnished and tax credits seized.

The letter also cited Navient’s “disturbing history of abuse and misbehavior towards borrowers” and asked Maximus to confirm, by December 8, its plans to ensure a seamless transition for the nearly six million borrowers while preventing the same errors Navient made over the past decade.

It’s no surprise that Warren is cracking down on Maximus early — she has long held Navient in her sights, even before she was elected to the Senate. Insider reported in April on the comprehensive history Warren has with Navient, starting in 2006 when she was interviewed on “60 Minutes” and cited Sallie Mae, as Navient was formerly known, for its abuses of the student-loan system.

Since then, she has repeatedly called out the company for unlawful practices with borrowers, like in November 2018, when Warren released an audit providing evidence of Navient’s record of causing students to go into deeper student debt by “steering student borrowers into forbearance when that was often the worst financial option for them.”

And most notably, during an April hearing where she invited the CEOs of all the student-loan companies to testify, she told Navient’s CEO, John Remondi, that he should be fired for the abuses that happened under his leadership.

The Pennsylvania Higher Education Assistance Agency (PHEAA) and Granite State Management and Resources announced in June they will be ending their servicing contracts this year, and although PHEAA recently reversed course and extended its contract one additional year to allow more time for the transition, by the end of 2022, 16 million student-loan borrowers will be at the hands of new companies.