Latest news with #DepartmentofEducation
CNN
14 minutes ago
- Business
- CNN
The Department of Education has paused certain student loan forgiveness. Here's what you need to know
The US Department of Education has halted the cancellation of student loans in Income-Based Repayment plans, prompting concern among borrowers that their loans will not be forgiven anytime soon. The department posted a notice of the pause in an FAQ on its Federal Student Aid website earlier this month, saying that it needs to address a federal court order that affects income-driven repayment plans. 'Currently, IBR forgiveness is paused while our systems are updated to accurately count months not affected by the court's injunction. IBR forgiveness will resume once those updates are completed,' the department wrote. The department noted that forgiveness in other income-driven repayment plans are paused, but it will continue to 'process loan forgiveness for the IBR Plan, which was separately enacted by Congress' in the future. The pause comes at a time of major change for the nation's student loan system that has rattled some borrowers. Interest will start accruing on August 1 for millions of borrowers in Saving on a Valuable Education (SAVE) plans, a Biden-era income-driven repayment option that has been blocked by the federal court order, even as payment remain halted. And President Donald Trump's 'big, beautiful bill' contains a major overhaul of student loan repayment plans and borrowing rules. The roughly 2 million borrowers in IBR plans are eligible to have their loans forgiven after either 20 or 25 years of payments, depending on when the loans were taken out. But calculating whether borrowers have made enough payments to qualify for forgiveness has been an issue for several years. Also, the Biden administration made several changes to the IBR plan forgiveness program, including counting the months that loan payments were deferred for economic hardship reasons or paused in forbearance toward payment requirement. The court's order affected certain of the Biden administration's regulatory changes that pertain to the IBR plans, including the expanded set of deferments and forbearances that count toward forgiveness, said Mark Kantrowitz, a longtime student loan expert. Borrowers, however, are worried that the Trump administration — which has not been supportive of loan forgiveness programs in the past — may 'slow walk' the loan discharges, Kantrowitz said. They must continue repaying their loans until the Department of Education determines they have met the criteria to have their loans discharged. 'Borrowers who qualify for forgiveness want to receive their forgiveness,' he said. The department says that it needs to temporarily suspend the IBR plan forgiveness program to implement the court ruling. 'Legal IBR discharges will resume as soon as the Department is able to establish the correct payment count,' Ellen Keast, the agency's deputy press secretary, said in a statement to CNN. 'For any borrower that makes a payment after the date of borrower eligibility, the Department will refund overpayments when the discharges resume.' While the department did not respond to CNN's question about when IBR plan forgiveness will resume, Scott Buchanan, executive director of the Student Loan Servicing Alliance, said he doesn't think the pause will last long. Still, another reason eligible borrowers are concerned about the pause is that loans canceled after January 1 are set to be counted as income for tax purposes, said Aissa Canchola Banez, policy director at the Student Borrower Protection Center, an advocacy group. That's because the Republican-led Congress did not extend a Biden-era provision that made such cancellations tax exempt and is scheduled to expire at year's end. 'This delay can force folks to ultimately get to that date in which they could potentially see a tax bill,' she said. The department, which has laid off a sizable number of its staff, is already contending with a large backlog of roughly 1.5 million applications from borrowers seeking to switch into different income-driven repayment plans, Kantrowitz said.
CNN
15 minutes ago
- Business
- CNN
The Department of Education has paused certain student loan forgiveness. Here's what you need to know
The US Department of Education has halted the cancellation of student loans in Income-Based Repayment plans, prompting concern among borrowers that their loans will not be forgiven anytime soon. The department posted a notice of the pause in an FAQ on its Federal Student Aid website earlier this month, saying that it needs to address a federal court order that affects income-driven repayment plans. 'Currently, IBR forgiveness is paused while our systems are updated to accurately count months not affected by the court's injunction. IBR forgiveness will resume once those updates are completed,' the department wrote. The department noted that forgiveness in other income-driven repayment plans are paused, but it will continue to 'process loan forgiveness for the IBR Plan, which was separately enacted by Congress' in the future. The pause comes at a time of major change for the nation's student loan system that has rattled some borrowers. Interest will start accruing on August 1 for millions of borrowers in Saving on a Valuable Education (SAVE) plans, a Biden-era income-driven repayment option that has been blocked by the federal court order, even as payment remain halted. And President Donald Trump's 'big, beautiful bill' contains a major overhaul of student loan repayment plans and borrowing rules. The roughly 2 million borrowers in IBR plans are eligible to have their loans forgiven after either 20 or 25 years of payments, depending on when the loans were taken out. But calculating whether borrowers have made enough payments to qualify for forgiveness has been an issue for several years. Also, the Biden administration made several changes to the IBR plan forgiveness program, including counting the months that loan payments were deferred for economic hardship reasons or paused in forbearance toward payment requirement. The court's order affected certain of the Biden administration's regulatory changes that pertain to the IBR plans, including the expanded set of deferments and forbearances that count toward forgiveness, said Mark Kantrowitz, a longtime student loan expert. Borrowers, however, are worried that the Trump administration — which has not been supportive of loan forgiveness programs in the past — may 'slow walk' the loan discharges, Kantrowitz said. They must continue repaying their loans until the Department of Education determines they have met the criteria to have their loans discharged. 'Borrowers who qualify for forgiveness want to receive their forgiveness,' he said. The department says that it needs to temporarily suspend the IBR plan forgiveness program to implement the court ruling. 'Legal IBR discharges will resume as soon as the Department is able to establish the correct payment count,' Ellen Keast, the agency's deputy press secretary, said in a statement to CNN. 'For any borrower that makes a payment after the date of borrower eligibility, the Department will refund overpayments when the discharges resume.' While the department did not respond to CNN's question about when IBR plan forgiveness will resume, Scott Buchanan, executive director of the Student Loan Servicing Alliance, said he doesn't think the pause will last long. Still, another reason eligible borrowers are concerned about the pause is that loans canceled after January 1 are set to be counted as income for tax purposes, said Aissa Canchola Banez, policy director at the Student Borrower Protection Center, an advocacy group. That's because the Republican-led Congress did not extend a Biden-era provision that made such cancellations tax exempt and is scheduled to expire at year's end. 'This delay can force folks to ultimately get to that date in which they could potentially see a tax bill,' she said. The department, which has laid off a sizable number of its staff, is already contending with a large backlog of roughly 1.5 million applications from borrowers seeking to switch into different income-driven repayment plans, Kantrowitz said.
Yahoo
2 hours ago
- Business
- Yahoo
Key questions about ‘ghost station' proposal
The potential reopening of the long-abandoned Woollahra train station in Sydney's glitzy southeast has raised alarm bells amid concerns the area's infrastructure is not up to task. The Labor government is reportedly giving consideration to opening the 'ghost station' almost 50 years after work was halted and rezoning the area for housing towers. While developers heralded the proposal, which the state government has not formally commented on, as a 'no-brainer', questions have been raised about its feasibility. Woollahra is serviced by a single public school – Woollahra Public School – which has 701 children enrolled, according to the Department of Education. Online documents provided by the school state the campus has a capacity of just 698 students, based on the number of permanent teacher spaces and class sizes. An additional 1729 students are enrolled at nearby public schools, including Vaucluse Public School, which has just 232 students, according to most recent data. Riverbank Public School, located in Sydney's northwestern growth area, by comparison has more than 2011 students enrolled from kindergarten to year 6. Opposition education spokeswoman Sarah Mitchell accused the Minns Labor government of 'floating housing thought bubbles without doing the homework'. 'Even now, the community is crying out for another co-ed high school – not based on future growth but the population that already lives here,' she said. 'Any serious housing proposal must come with serious investment in school infrastructure. 'But once again, Chris Minns and his ministers are putting the cart before the horse – promising rooftops without classrooms.' Mr Minns is yet to make an announcement about the future of Woollahra station but has not denied designs for the so-called ghost station either. It comes at a crucial time for the Premier after the sale of Rosehill Racecourse to make way for 25,000 homes was shot down by the Australian Turf Club. The Labor government is focusing on housing initiatives closer to the Sydney CBD and is spearheading measures to overrule recalcitrant Sydney small councils. Mr Minns said new guidelines announced this month would allow the state government to 'surpass many councils' ability to say no' to new housing planning proposals. Many of the councils the state government has its eyes set on are in Sydney's affluent southeast and north shore, areas with a reputation for opposing new housing projects. Woollahra Deputy Mayor Sean Carmichael has been one of many vocal sceptics of the Woollahra train station revival proposal. Mr Carmichael said the proposal was 'an interesting idea' but urged for a 'planning scalpel' to balance any potential density opportunities with heritage issues. He said he had suggested opening ticket boxes and escalators to activate the station many years ago. 'I still personally wouldn't mind if that were the case, but expectations for what this stop can actually achieve really need serious tempering,' he said. 'Aside from density and heritage concerns I've already raised, opening Woollahra station won't help young commuters very much. 'Woollahra Public (School) parents will still mostly prefer to drive their children for safety and family time, so the advantage there is also very limited. 'It could also slow students down too, by adding greater complexity to the line, and drive up delays. 'The steep valley below, with awkward roads like Attunga St, really dent the viability of making Woollahra station anything more than a hokey stop on an otherwise incredibly efficient line.' Mr Carmichael warned that 'flattening' mid-century and other architecturally historic homes in the area would not create affordable homes. 'Quite the opposite, as new luxury units bursting with creature comforts are inevitably more expensive than older ones that, for instance, don't have ducted heating or sound proofing,' he said. In a statement, a Woollahra Municipal Council spokesperson said the council had not received 'confirmation or any detail from the NSW government regarding revisiting and/or developing a train station in Woollahra'. 'Woollahra Mayor Sarah Swan has indicated that she is willing to discuss this idea with the government within the context of ongoing concerns regarding the impacts the government's low and mid-rise (LMR) housing changes will have on Woollahra. 'The LMR changes ignore well-founded community concerns regarding existing density, increased traffic congestion, a lack of public infrastructure and the need to protect local heritage. 'Council is committed to supporting housing growth, but delivery of additional housing should respect the existing character of our community and take into account the unique challenges of each location. 'The changes override council's carefully-developed strategic plans for additional housing at appropriate locations, including nearby Edgecliff, which would not sacrifice high standards of planning integrity and community benefits.'
The Advertiser
5 hours ago
- Politics
- The Advertiser
'Big weapon' wielded to strengthen childcare safety
Childcare centres that fail to meet standards could soon be stripped of their funding under reforms fast-tracked in response to horrifying abuse allegations. The changes were introduced to the House of Representatives on the first day of parliamentary business since the May election. They follow widespread calls for change after a Victorian childcare worker was charged with dozens of sex offences involving children. State regulators can already shut a centre on the spot if there is an imminent threat to safety. But Education Minister Jason Clare said the Commonwealth could also try to lift standards through its available levers. "We have to do everything that we can to ensure the safety of our children when they walk or when they're carried through the doors of an early education and care service," he told parliament on Wednesday. "Funding is the big weapon that the Australian government has to wield here. "The real purpose of this legislation isn't to shut centres down, but to raise standards." Any childcare operators that fail to meet quality, safety and compliance standards could be prevented from opening new centres and might be cut off from receiving government subsidies, which typically cover a large proportion of parents' fees. Providers would be issued with a formal notice requiring an explanation within 28 days with the Department of Education able to cancel or suspend an operator's approval. "Providers that can improve their services to meet the standard will get the chance to do that," Mr Clare said. "Services that don't or can't or won't will lose their access to funding." The bill also expands commonwealth powers to publish information about providers that are sanctioned for non-compliance. State, territory and federal ministers are expected to meet in August to discuss other changes, including mandatory CCTV in childcare centres, establishing a national worker registry and mandatory child-safety training. Information on centres for which childcare subsidy approvals have been suspended or cancelled can already be viewed on the department's website. But the legislation would also allow for information to be made public when compliance action is taken against providers, like when an infringement notice is issued. Commonwealth-authorised officers would also be given more powers to do their jobs through the ability to enter premises without consent during operating hours to detect non-compliance across the sector. Opposition Leader Sussan Ley said the coalition would need to examine the legislation closely. "I wanted this issue to be above politics, as somebody who's dropped my own children off at child care and now sees my children dropping their children at child care," she told ABC News. "I'm incredibly concerned, so I do want to be constructive, but that being constructive doesn't mean giving the government a blank cheque when it comes to goodwill on this issue." Mr Clare said parents were "not interested in excuses, they expect action". There were still issues with sharing information on working-with-children checks between jurisdictions, he added, and more work would be done at an upcoming meeting of state and federal attorneys-general. 1800 RESPECT (1800 737 732) National Sexual Abuse and Redress Support Service 1800 211 028 Childcare centres that fail to meet standards could soon be stripped of their funding under reforms fast-tracked in response to horrifying abuse allegations. The changes were introduced to the House of Representatives on the first day of parliamentary business since the May election. They follow widespread calls for change after a Victorian childcare worker was charged with dozens of sex offences involving children. State regulators can already shut a centre on the spot if there is an imminent threat to safety. But Education Minister Jason Clare said the Commonwealth could also try to lift standards through its available levers. "We have to do everything that we can to ensure the safety of our children when they walk or when they're carried through the doors of an early education and care service," he told parliament on Wednesday. "Funding is the big weapon that the Australian government has to wield here. "The real purpose of this legislation isn't to shut centres down, but to raise standards." Any childcare operators that fail to meet quality, safety and compliance standards could be prevented from opening new centres and might be cut off from receiving government subsidies, which typically cover a large proportion of parents' fees. Providers would be issued with a formal notice requiring an explanation within 28 days with the Department of Education able to cancel or suspend an operator's approval. "Providers that can improve their services to meet the standard will get the chance to do that," Mr Clare said. "Services that don't or can't or won't will lose their access to funding." The bill also expands commonwealth powers to publish information about providers that are sanctioned for non-compliance. State, territory and federal ministers are expected to meet in August to discuss other changes, including mandatory CCTV in childcare centres, establishing a national worker registry and mandatory child-safety training. Information on centres for which childcare subsidy approvals have been suspended or cancelled can already be viewed on the department's website. But the legislation would also allow for information to be made public when compliance action is taken against providers, like when an infringement notice is issued. Commonwealth-authorised officers would also be given more powers to do their jobs through the ability to enter premises without consent during operating hours to detect non-compliance across the sector. Opposition Leader Sussan Ley said the coalition would need to examine the legislation closely. "I wanted this issue to be above politics, as somebody who's dropped my own children off at child care and now sees my children dropping their children at child care," she told ABC News. "I'm incredibly concerned, so I do want to be constructive, but that being constructive doesn't mean giving the government a blank cheque when it comes to goodwill on this issue." Mr Clare said parents were "not interested in excuses, they expect action". There were still issues with sharing information on working-with-children checks between jurisdictions, he added, and more work would be done at an upcoming meeting of state and federal attorneys-general. 1800 RESPECT (1800 737 732) National Sexual Abuse and Redress Support Service 1800 211 028 Childcare centres that fail to meet standards could soon be stripped of their funding under reforms fast-tracked in response to horrifying abuse allegations. The changes were introduced to the House of Representatives on the first day of parliamentary business since the May election. They follow widespread calls for change after a Victorian childcare worker was charged with dozens of sex offences involving children. State regulators can already shut a centre on the spot if there is an imminent threat to safety. But Education Minister Jason Clare said the Commonwealth could also try to lift standards through its available levers. "We have to do everything that we can to ensure the safety of our children when they walk or when they're carried through the doors of an early education and care service," he told parliament on Wednesday. "Funding is the big weapon that the Australian government has to wield here. "The real purpose of this legislation isn't to shut centres down, but to raise standards." Any childcare operators that fail to meet quality, safety and compliance standards could be prevented from opening new centres and might be cut off from receiving government subsidies, which typically cover a large proportion of parents' fees. Providers would be issued with a formal notice requiring an explanation within 28 days with the Department of Education able to cancel or suspend an operator's approval. "Providers that can improve their services to meet the standard will get the chance to do that," Mr Clare said. "Services that don't or can't or won't will lose their access to funding." The bill also expands commonwealth powers to publish information about providers that are sanctioned for non-compliance. State, territory and federal ministers are expected to meet in August to discuss other changes, including mandatory CCTV in childcare centres, establishing a national worker registry and mandatory child-safety training. Information on centres for which childcare subsidy approvals have been suspended or cancelled can already be viewed on the department's website. But the legislation would also allow for information to be made public when compliance action is taken against providers, like when an infringement notice is issued. Commonwealth-authorised officers would also be given more powers to do their jobs through the ability to enter premises without consent during operating hours to detect non-compliance across the sector. Opposition Leader Sussan Ley said the coalition would need to examine the legislation closely. "I wanted this issue to be above politics, as somebody who's dropped my own children off at child care and now sees my children dropping their children at child care," she told ABC News. "I'm incredibly concerned, so I do want to be constructive, but that being constructive doesn't mean giving the government a blank cheque when it comes to goodwill on this issue." Mr Clare said parents were "not interested in excuses, they expect action". There were still issues with sharing information on working-with-children checks between jurisdictions, he added, and more work would be done at an upcoming meeting of state and federal attorneys-general. 1800 RESPECT (1800 737 732) National Sexual Abuse and Redress Support Service 1800 211 028 Childcare centres that fail to meet standards could soon be stripped of their funding under reforms fast-tracked in response to horrifying abuse allegations. The changes were introduced to the House of Representatives on the first day of parliamentary business since the May election. They follow widespread calls for change after a Victorian childcare worker was charged with dozens of sex offences involving children. State regulators can already shut a centre on the spot if there is an imminent threat to safety. But Education Minister Jason Clare said the Commonwealth could also try to lift standards through its available levers. "We have to do everything that we can to ensure the safety of our children when they walk or when they're carried through the doors of an early education and care service," he told parliament on Wednesday. "Funding is the big weapon that the Australian government has to wield here. "The real purpose of this legislation isn't to shut centres down, but to raise standards." Any childcare operators that fail to meet quality, safety and compliance standards could be prevented from opening new centres and might be cut off from receiving government subsidies, which typically cover a large proportion of parents' fees. Providers would be issued with a formal notice requiring an explanation within 28 days with the Department of Education able to cancel or suspend an operator's approval. "Providers that can improve their services to meet the standard will get the chance to do that," Mr Clare said. "Services that don't or can't or won't will lose their access to funding." The bill also expands commonwealth powers to publish information about providers that are sanctioned for non-compliance. State, territory and federal ministers are expected to meet in August to discuss other changes, including mandatory CCTV in childcare centres, establishing a national worker registry and mandatory child-safety training. Information on centres for which childcare subsidy approvals have been suspended or cancelled can already be viewed on the department's website. But the legislation would also allow for information to be made public when compliance action is taken against providers, like when an infringement notice is issued. Commonwealth-authorised officers would also be given more powers to do their jobs through the ability to enter premises without consent during operating hours to detect non-compliance across the sector. Opposition Leader Sussan Ley said the coalition would need to examine the legislation closely. "I wanted this issue to be above politics, as somebody who's dropped my own children off at child care and now sees my children dropping their children at child care," she told ABC News. "I'm incredibly concerned, so I do want to be constructive, but that being constructive doesn't mean giving the government a blank cheque when it comes to goodwill on this issue." Mr Clare said parents were "not interested in excuses, they expect action". There were still issues with sharing information on working-with-children checks between jurisdictions, he added, and more work would be done at an upcoming meeting of state and federal attorneys-general. 1800 RESPECT (1800 737 732) National Sexual Abuse and Redress Support Service 1800 211 028
Perth Now
7 hours ago
- Politics
- Perth Now
'Big weapon' wielded to strengthen childcare safety
Childcare centres that fail to meet standards could soon be stripped of their funding under reforms fast-tracked in response to horrifying abuse allegations. The changes were introduced to the House of Representatives on the first day of parliamentary business since the May election. They follow widespread calls for change after a Victorian childcare worker was charged with dozens of sex offences involving children. State regulators can already shut a centre on the spot if there is an imminent threat to safety. But Education Minister Jason Clare said the Commonwealth could also try to lift standards through its available levers. "We have to do everything that we can to ensure the safety of our children when they walk or when they're carried through the doors of an early education and care service," he told parliament on Wednesday. "Funding is the big weapon that the Australian government has to wield here. "The real purpose of this legislation isn't to shut centres down, but to raise standards." Any childcare operators that fail to meet quality, safety and compliance standards could be prevented from opening new centres and might be cut off from receiving government subsidies, which typically cover a large proportion of parents' fees. Providers would be issued with a formal notice requiring an explanation within 28 days with the Department of Education able to cancel or suspend an operator's approval. "Providers that can improve their services to meet the standard will get the chance to do that," Mr Clare said. "Services that don't or can't or won't will lose their access to funding." The bill also expands commonwealth powers to publish information about providers that are sanctioned for non-compliance. State, territory and federal ministers are expected to meet in August to discuss other changes, including mandatory CCTV in childcare centres, establishing a national worker registry and mandatory child-safety training. Information on centres for which childcare subsidy approvals have been suspended or cancelled can already be viewed on the department's website. But the legislation would also allow for information to be made public when compliance action is taken against providers, like when an infringement notice is issued. Commonwealth-authorised officers would also be given more powers to do their jobs through the ability to enter premises without consent during operating hours to detect non-compliance across the sector. Opposition Leader Sussan Ley said the coalition would need to examine the legislation closely. "I wanted this issue to be above politics, as somebody who's dropped my own children off at child care and now sees my children dropping their children at child care," she told ABC News. "I'm incredibly concerned, so I do want to be constructive, but that being constructive doesn't mean giving the government a blank cheque when it comes to goodwill on this issue." Mr Clare said parents were "not interested in excuses, they expect action". There were still issues with sharing information on working-with-children checks between jurisdictions, he added, and more work would be done at an upcoming meeting of state and federal attorneys-general. 1800 RESPECT (1800 737 732) National Sexual Abuse and Redress Support Service 1800 211 028
