Latest news with #FederalPellGrants
Yahoo
08-05-2025
- Business
- Yahoo
Is it fraud? Boston man brings concerns about his fiancée's parents ‘ethically horrendous' act to Dave Ramsey
A Boston man reached out to The Ramsey Show for advice after learning that his fiancée's dad may have gamed the student aid system — something he feared might amount to fraud. According to Cody, 'back in November, [my fiancée] told me her father had transferred all her parents' investments to her so that her sister could get a better financial aid package [for college].' Dave Ramsey didn't mince words, saying that while he couldn't determine if it was indeed fraud, it was 'definitely morally wrong.' Thanks to Jeff Bezos, you can now become a landlord for as little as $100 — and no, you don't have to deal with tenants or fix freezers. Here's how I'm 49 years old and have nothing saved for retirement — what should I do? Don't panic. Here are 5 of the easiest ways you can catch up (and fast) Nervous about the stock market in 2025? Find out how you can access this $1B private real estate fund (with as little as $10) 'It's approaching the criminal side,' Ramsey said, adding, 'It's ethically horrendous, ethically ridiculously bad.' Ramsey thinks Cody's future in-laws were applying for Federal Pell Grants, typically reserved for undergrads in serious need of financial assistance. Unlike student loans, Pell Grants do not have to be repaid. Ramsey finds it abhorrent that anyone would pose as poor to receive aid that is actually intended for students who are legitimately struggling. 'This guy has no ethics, he's willing to lie to the government to get poor people's student assistance,' Ramsey said. Read more: BlackRock CEO Larry Fink has an important message for the next wave of American retirees — here's how he says you can best weather the US retirement crisis To add to Cody's dilemma, his future father-in-law asked him to sign a prenuptial agreement. Cody said he wasn't comfortable signing and combining assets with the man. 'That's why you got slime on you and wanted to take a shower after you met him,' Ramsey said. The entwining of family finances, he warned, 'is not healthy.' 'You can't prenup away a lack of ethics.' Ramsey advised Cody to stand his ground and build a 'standalone life that doesn't involve something that's unethical.' The finance guru acknowledged that Cody's fiancée could suffer, caught between loyalty to her father and her future husband. Ramsey encourages a careful approach. 'You can be gentle and kind, and don't have to accuse him,' Ramsey said. 'Don't call him names. You could say, 'I got some counsel because I was confused about it and it bothered me.' Take all the weight of the problem on you and say you can't go forward with this.' He added that Cody could also tell his future in-laws: 'All of my understanding of setting up a household is we are to leave and cleave to set up our standalone household to be able to have a high-quality relationship with your daughter.' Ultimately, Ramsey stressed, Cody's fiancée needs to 'realize what's going on. You can't cave, because it condones everything.' Want an extra $1,300,000 when you retire? Dave Ramsey says this 7-step plan 'works every single time' to kill debt, get rich in America — and that 'anyone' can do it Rich, young Americans are ditching the stormy stock market — here are the alternative assets they're banking on instead Robert Kiyosaki warns of a 'Greater Depression' coming to the US — with millions of Americans going poor. But he says these 2 'easy-money' assets will bring in 'great wealth'. How to get in now This article provides information only and should not be construed as advice. It is provided without warranty of any kind. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
22-04-2025
- Business
- Yahoo
Are your student loans in default? They'll soon be sent to debt collectors
Americans with student loans in default will have to begin repaying them next month or risk having their wages garnished. According to a statement from the Education Department, starting May 5, the Treasury Department's offset program will initiate involuntary collection on those loans. This means government payments — including tax refunds, federal salaries, and other benefits — will be withheld from individuals with overdue debts. Additionally, after a 30-day notice period, the department will begin wage garnishment for borrowers in default. Secretary of Education Linda McMahon, who seemingly took a dig at the Biden administration's loan-forgiveness program, said the borrowers are responsible for paying the loans. 'American taxpayers will no longer be forced to serve as collateral for irresponsible student loan policies,' said McMahon. 'The Biden Administration misled borrowers: the executive branch does not have the constitutional authority to wipe debt away, nor do the loan balances simply disappear." Here's what borrowers need to know about the loan collection. The U.S. Department of Education announced that it will restart collections on defaulted student loans beginning May 5. Over the next two weeks, the department will notify borrowers in default via email, encouraging them to make a payment or enroll in a repayment plan. The emails will also direct them to a government website with details on how to proceed. Wage garnishment is a legal procedure in which a person's earnings are required by court order to be withheld by an employer for the payment of a debt. According to the Education Department's notice, wage garnishment will begin later this summer, meaning payments will be automatically taken from borrowers' paychecks. According to Federal Student Aid, for most federal student loans, borrowers enter default after 270 days (roughly nine months) of missed payments. Once in default, the full remaining balance becomes immediately due, and the government can take action to recover the debt, such as garnishing wages or withholding tax refunds. Nearly 5.3 million borrowers are in default on their federal student loans. As per the Federal Student Aid website, the following can happen for those who have defaulted on their loan without making a payment: The entire unpaid balance of your loan and any interest you owe becomes immediately due. Your tax refunds and federal benefit payments may be withheld and applied toward repayment of your defaulted loan (this is called 'Treasury offset'). Garnished wages. This means your employer may be required to withhold a portion of your pay and send it to your loan holder to repay your defaulted loan. You can no longer receive deferment or forbearance, and you lose eligibility for other benefits, such as the ability to choose a repayment plan. You lose eligibility for additional federal student aid, such as Federal Pell Grants and student loans. The default is reported to credit bureaus, damaging your credit rating and affecting your ability to buy a car or house or to get a credit card. This article originally appeared on Austin American-Statesman: Unpaid student loans will soon go to debt collection, officials say
Newsweek
22-04-2025
- Business
- Newsweek
What if You Can't Pay Your Student Loan? Trump Sets New Deadline
Based on facts, either observed and verified firsthand by the reporter, or reported and verified from knowledgeable sources. Newsweek AI is in beta. Translations may contain inaccuracies—please refer to the original content. The Trump administration has announced it will resume collection efforts on defaulted federal student loans starting in early May. Why It Matters The resumption of payments will impact more than 5 million borrowers who are currently in default, the Education Department said, adding that another 4 million borrowers are late in making payments. What To Know Defaulted student loans have not been collected since March 2020 when the federal government activated a process known as administrative forbearance, which was put in place due to the economic turbulence caused by the coronavirus pandemic. The Biden administration extended the pause several times before repayments became due again in October 2024. Borrowers become delinquent from the first day a payment is late, and for most federal student loans, the outstanding balance goes into default after 270 days, or roughly nine months, of non-payment. The Education Department said it will begin informing borrowers who are in default via email over the next two weeks, urging them to make a payment or to enroll in a repayment plan. If action is not taken by May 5, defaulted borrowers will become subject to wage garnishment to collect their outstanding balances. Stock image/file photo: A mortarboard laid on U.S. dollar bills. Stock image/file photo: A mortarboard laid on U.S. dollar bills. GETTY What Happens If You Can't Pay Failing to make your student loan payment on time—or missing it altogether—can eventually lead to default. Once your loan goes into default, the full remaining balance of your loan, along with any accrued interest, becomes immediately due (known as "acceleration"), and the government has the authority to recover the debt by garnishing your wages, withholding tax refunds, and seizing other federal payments. Other consequences include: Losing access to deferment, forbearance, and other benefits—including the option to choose a repayment plan. Becoming ineligible for additional federal student aid, such as Federal Pell Grants and new student loans. The default is reported to credit bureaus, which can significantly lower your credit score and impact your ability to finance a car, home, or obtain credit cards. Rebuilding your credit can take several years, and you could face restrictions on buying or selling certain assets, like real estate. Your loan holder has the right to take legal action against you, and you could be responsible for additional costs, including court fees, collection expenses, and attorney fees related to the collection process. Repayment Plans The Department will also restart processing of applications for Income-Driven Repayment (IDR), which allows borrowers to tie loan payments to their incomes. Borrowers will have until May 5 to apply for a repayment plan if they are delinquent or in default. There are four main types of repayment plan: Income-Based Repayment (IBR)—sets monthly payments at 10 to 15 percent of a borrower's discretionary income, making it a suitable option for those with a high debt-to-income ratio. Borrowers can qualify for loan forgiveness after making 20 to 25 years of payments. Income-Contingent Repayment (ICR)—determines payments as either 20 percent of discretionary income or a fixed amount over 12 years, whichever is lower. Loan forgiveness is available after 25 years, and this is the only income-driven plan accessible to Parent PLUS Loan borrowers through consolidation. Pay As You Earn (PAYE)—caps payments at 10 percent of discretionary income and is available only to those who took out loans after October 1, 2007. Borrowers can receive loan forgiveness after 20 years of qualifying payments. Revised Pay As You Earn (REPAYE)—requires payments of 10 percent of discretionary income, regardless of income level. Loan forgiveness is granted after 20 years for undergraduate loans and 25 years for graduate loans. If you don't pick a repayment plan, your loan servicer will place you on the Standard Repayment Plan (a 10-year fixed payment repayment plan), which may result in a higher monthly payment. What People Are Saying U.S. Secretary of Education Linda McMahon said in a press release issued on April 21: "American taxpayers will no longer be forced to serve as collateral for irresponsible student loan policies. The Biden Administration misled borrowers: the executive branch does not have the constitutional authority to wipe debt away, nor do the loan balances simply disappear. Hundreds of billions have already been transferred to taxpayers. "Going forward, the Department of Education, in conjunction with the Department of Treasury, will shepherd the student loan program responsibly and according to the law, which means helping borrowers return to repayment—both for the sake of their own financial health and our nation's economic outlook." Student Borrower Protection Center (SBPC) executive director Mike Pierce said in a statement: "For five million people in default, federal law gives borrowers a way out of default and the right to make loan payments they can afford. Since February, Donald Trump and Linda McMahon have blocked these borrowers' path out of default and are now feeding them into the maw of the government debt collection machine. This is cruel, unnecessary, and will further fan the flames of economic chaos for working families across this country." What Happens Next The Education Department's Office of Federal Student Aid will email all borrowers in default over the next two weeks. Later this summer, it will begin sending notices to initiate wage garnishment for those who remain in default.
Yahoo
19-03-2025
- Politics
- Yahoo
Schools across DC region rally against proposed education cuts
The Brief D.C. area schools hold "walk-ins" protesting federal budget cuts to public education. Title I funding, special education, and Pell Grants face potential reductions. Events urge lawmakers to restore funding during Congress' recess. UPPER MARLBORO, Md. - Parents, teachers, and students in the Washington, D.C. region are joining a nationwide movement to protest sweeping federal education budget cuts. Organized "walk-ins" are taking place at schools across the country, including Wise High School and several others in Prince George's County, as part of an effort led by the National Education Association. What we know FOX 5's Maureen Umeh says the rallies aim to push back against recent federal cuts that advocates warn could have devastating effects on public education. Last week's layoff of 1,400 U.S. Department of Education employees reduced the agency's workforce by nearly half since 2017. Key programs are at risk, including Title I funding for low-income schools, special education services, and higher education grants like Federal Pell Grants for low-income college students. Local leaders caution that Prince George's County schools could face overcrowded classrooms, fewer resources, and increased burdens on teachers. What's next Walk-ins, scheduled for this morning, are expected to last 30 to 45 minutes before the start of the school day. Organizers are urging participants to contact lawmakers during Congress' recess to demand restored funding for critical education programs. The Source FOX 5 DC
USA Today
29-01-2025
- Health
- USA Today
Temporary pause on federal financial assistance programs worries Louisiana organizations
Temporary pause on federal financial assistance programs worries Louisiana organizations While CLASS, Healthy Living for All, will be greatly impacted as an agency by the Trump administration's temporary pause on grant, loan and other financial assistance programs at the Office of Management and Budget, executive director Ann Lowrey is more worried about the people that the non-profit serves. She said its operations and programs predominately are funded by federal grants to the state of Louisiana, and CLASS is a contractor or sub-recipient of the grants. "In January alone, CLASS helped house nearly 100 people living with HIV or AIDS. Without our assistance, many of these individuals are at risk of becoming homeless," she said, citing this as an example of one of the supportive services they provide. "There are many, many people who rely on these services for their survival," she said. She said CLASS provides services in three categories that rely on federal funding to varying degrees. Those services include "supportive services for people living with HIV; HIV prevention services that include HIV and STI testing, linkage to care or treatment at our facility; and preventative HIV services, including access to pre-exposure prophylaxis services; and Harm Reduction services that include alcohol and substance misuse groups and access to treatment options, syringe services and overdose prevention education and materials including Narcan." Linda Hutson, director of development and community relations at the Food Bank of Central Louisiana, said they have read the information that they have seen in the news, but have not heard anything officially or unofficially about their current funding streams or grants, so they don't know enough to make a comment at this time. Kitty Wynn, executive director of the Central Louisiana Homeless Coalition in Alexandria, said they decided to pause moving forward with some things because of the order. Central Louisiana Technical Community College released a statement to its students Tuesday afternoon regarding the executive order that read, 'We are closely monitoring recent federal actions as we receive the latest updates from national organizations and our legislative partners. The Department of Education has indicated that the temporary funding pause does not impact Federal Pell Grants, Direct Loans Under Title IV, HEA, Title I, IDEA, other formula grants, or assistance received directly by individuals. However, it may impact other programs. We are actively seeking clarification on how these changes will be implemented, and as we await further guidance and assessment, we remain focused on our mission to provide accessible education and workforce training that supports Louisiana's communities and economy.'
