With the presidential election heating up, there’s a lot of talk about student loans. Here’s what you need to know about current legislation, the struggle some students experience, and what a president can actually promise.
If you’re a victim of college fraud, you can still seek loan forgiveness — for now.
The House voted 231-180 to overturn regulations Secretary of Education Betsy DeVos recently introduced that would limit forgiveness for students who have been a victim of fraud after a college closes unexpectedly.
The current rules, which were introduced in the Obama-era, allowed students to get loan forgiveness if the school was deceptive in their attempts to get students to take out student loans to attend. Students would often be stuck paying loans when they were unable to finish their education or gain employment in the field they were studying.
DeVos believes that forgiving loans under these circumstances were unfair to taxpayers and introduced a bill to limit loan forgiveness for those students. The good news is that after several states sued DeVos for not protecting students who were taken advantage of, the house overturned the regulation.
If you suffer at the hands of deceptive practices, you’re still eligible for potential forgiveness on your federal student loans.
Latino students are enrolling in college at record rates but lack the resources to finish
According to a recent report from USA Today, Latinos are pursuing degrees now more than they ever have. That’s excellent news. So, what’s the issue?
The problem is that while many Latinos are heading to school, they quickly find they can’t afford to finish their education. From 2016 to 2017, the number of Hispanic students enrolled in college rose from 3.17 to 3.27, despite an overall decline in college enrollment year over year.
Just under half of the students enrolled are eligible for Pell Grants, money that is meant to be held for students with the most financial need. A lack of financial resources severely limits their ability to continue their education and puts even more pressure on them and their families.
You can read the full report here.
If elected, could Elizabeth Warren really wipe out your student loans?
The general consensus is that nobody really knows. According to an article on CBS News, Sen. Warren’s sweeping student loan elimination plan relies on a loophole in the system. A loophole she may or may not be able to use.
The Higher Education Act was implemented in 1965 and apparently gives congress permission to “enforce, pay, compromise, waive, or release any right, claim, lien, or demand” to the lending program.
That’s the power that Warren is relying on. The problem? She needs a Secretary of Education in place on day one to make that happen — as they’re really the ones who have the power to wipe federal student loan debt.
To inform yourself and learn more about what’s possible, check out this article.