Business
What to know about the new SAVE student loan repayment plan before pandemic pause ends on August 5, 2023 at 12:00 pm Business News | The Hill
Student loan borrowers now have access to the beta website for the Saving on a Valuable Education (SAVE) plan, the Biden administration’s new income-driven repayment (IDR) plan, after the Department of Education unveiled it this week.
The program, which the White House calls the “most generous” such plan ever offered to borrowers, will become the main IDR interface for student debt in the coming months.
Borrowers will be navigating the changes SAVE makes to their monthly payments, which are set to restart in October after the three-year COVID-19 pause.
The SAVE plan, which doesn’t list a maximum applicable income, comes after the Supreme Court earlier this summer struck down President Biden’s attempt to forgive up to $20,000 per student loan borrower.
Here is what you need to know about SAVE before payments return:
How do borrowers apply?
All student loan borrowers are eligible to enroll in the SAVE plan and can start applying immediately.
Those who are on the Revised Pay As You Earn Repayment (REPAYE) IDR plan will not need to apply to the SAVE plan. The department is automatically enrolling them in the new plan.
And those who apply during the beta phase of the website will not have to apply again once the website is fully launched in August.
“During the testing period, eligible borrowers can apply for the SAVE Plan, but some website functionality may be limited as the Department’s technical team monitors site performance and refines and tweaks the application as needed,” an Education Department spokesperson said. “This testing period will allow the Department to monitor site performance through real-world use, test the site ahead of the official application launch, refine processes, and uncover any possible bugs prior to official launch.”
An education department official said the application should only take around 10 minutes to complete as the site can automatically pull up tax documents and other information you need for the application if it is already in its system.
Unlike past plans, if a borrower agrees to securely allow the department to access certain tax information, the agency will automatically recertify a person for the SAVE plan every year instead of the borrower having to do it themselves.
The same applies to a person who is 75 days late on their payments next July. If they agree to disclose certain tax information, the department will automatically enroll them in the plan.
What changes are made in the plan this year?
The plan is getting launched in two phases with some changes coming in the next couple of months and others coming next summer.
The first change raises the income exemption from 150 percent to 225 percent above the federal poverty guidelines. For borrowers, this means monthly payments will be based on a smaller portion of one’s income, leading to smaller payments on loans.
An individual borrower making as much as $32,800 a year would have $0 monthly payments on their student loans. A family of four would need an income higher than $67,500 to have monthly payments above $0.
Another change implemented this year will affect the interest on monthly payments. As long as someone on the SAVE plan makes their principal payments on their loans each month, they will not be penalized with growth of unpaid interest.
“You now have assurances that your reduced payment will be satisfactory for paying off the balance of your of your student loans, and you won’t have to worry about interest rates, causing your loan to grow even as you make payments,” said Bruce McClary, senior vice president of media relations and membership for the National Foundation for Credit Counseling.
“That’s exciting news because there’s nothing more deflating than looking at your statement and seeing your balance grow as you’re making the agreed upon payments based on the reductions through your plan,” McClary added.
And in a third change this year, spousal income will not be included in the monthly calculations for married couples who file separately.
Changes happening next summer
In July of next year, several changes will take place for those who are under the SAVE plan.
Borrowers with undergraduate loans can expect their monthly payments to be cut in half from 10 percent of their discretionary income to 5 percent.
Those with original balances of up to $12,000 can reach forgiveness after 10 years of payments, with an additional year added for every $1,000 after $12,000.
Borrowers who consolidate loans won’t lose time towards their forgiveness and payments made before 2024 will count towards time to forgiveness.
Changes will also occur for people who are in deferment or forbearance, although with the restart of student loans, everyone has been given a clean slate so no individual will be in deferment or forbearance until next year.
Certain periods of deferment or forbearance will qualify towards months for forgiveness and borrowers will be able to make “catch-up” payments to receive credit for other types of forbearance or deferment.
By the time the changes are implemented, it is likely the REPAYE program will be completely phased out and other IDR options will be limited.
“There was a lot of confusion about the different plans and the appropriateness of those plans in terms of a person’s unique circumstances and, for many borrowers, they had to had to take a little bit of extra time to reach out and get some expert advice to help guide them in the right direction to plug into the plan that worked best for them,” McClary said. “So hopefully, some confusion will be cleared, and the program will be presented in a way that’s easier to understand.”
Could this fall through in court?
The plan has been decried by Republicans for its hefty price tag of between $150 billion and $350 billion, according to varying estimates, and it’s facing at least one legal challenge.
“The administration’s Income-Driven Repayment rule is nothing more than a backdoor attempt to provide free college by executive fiat,” House Education and the Workforce Committee Chairwoman Virginia Foxx (R-N.C.) previously said.
On Friday, the New Civil Liberties Alliance (NCLA) filed a lawsuit to stop the SAVE plan, arguing it violates the Constitution’s Appropriations Clause, which says Congress is in charge of what debt that is owed to the Treasury can be forgiven.
The suit takes particular issue with the part of the SAVE plan that allows some periods of deferment or forbearance to count towards student loan forgiveness.
“Non-payments are not payments. No amount of nonsense changes the essential fact Congress required debtors to make payments before receiving debt relief,” said Mark Chenoweth, president and general Counsel of the NCLA.
Education, Administration, Business, student loans Student loan borrowers now have access to the beta website for the Saving on a Valuable Education (SAVE) plan, the Biden administration’s new income-driven repayment (IDR) plan, after the Department of Education unveiled it this week. The program, which the White House calls the “most generous” such plan ever offered to borrowers, will become the…
Business
The Cities Bracing for Trump’s Immigration Crackdown
In the wake of Donald Trump’s recent election victory and his promise of “the largest deportation operation in American history,” several major U.S. cities are bracing for potentially seismic shifts in their economic and social landscapes. As the nation grapples with the implications of this proposed policy, urban centers that have long been havens for immigrant communities find themselves at the epicenter of a looming storm.
Los Angeles, often dubbed the “City of Angels,” stands to lose more than its celestial nickname suggests. As a primary gateway for immigrants, the city’s vibrant tapestry of cultures and its economic engine could face significant disruption. From the bustling streets of Koreatown to the sun-drenched orchards of the Central Valley, the absence of undocumented workers could leave gaping holes in the city’s workforce and cultural identity.
Across the country, New York City, with its iconic skyline and melting pot reputation, faces its own reckoning. The Big Apple’s 5.9 million immigrants, many of whom are undocumented, form the backbone of industries ranging from construction to healthcare. The potential exodus could transform neighborhoods like Jackson Heights and Flushing, altering the very essence of what makes New York a global city.In the Sunshine State, Miami’s tropical allure belies the turbulent times ahead. Home to 2.5 million immigrants, the city’s economy relies heavily on sectors like tourism and hospitality – industries where undocumented workers often fill crucial roles. The potential deportation of these workers could send shockwaves through Miami’s economic ecosystem, from South Beach’s glitzy hotels to the agricultural heartlands of South Florida.
Chicago, the “City of Big Shoulders,” may find those shoulders significantly weakened. With 1.7 million immigrants in its metropolitan area, the Windy City’s diverse neighborhoods and industries face an uncertain future. From the meatpacking plants to the tech startups, Chicago’s economic resilience could be tested like never before.
In the Lone Star State, Houston and Dallas stand as twin testaments to the complexities of immigration policy. These Texas titans, each home to large immigrant populations, could see their booming economies stumble. The construction sites that dot their ever-expanding skylines and the service industries that keep these cities humming could face unprecedented labor shortages.
Out West, the San Francisco Bay Area’s reputation as a bastion of innovation and progress could be challenged. The region’s tech industry, often reliant on immigrant talent, might find itself grappling with a new reality. From Silicon Valley’s coding campuses to the agricultural expanses of the Central Valley, California’s economic powerhouse could face a reckoning. Phoenix, rising from the Sonoran Desert, could see its growth trajectory altered. As Arizona’s urban center, it stands at the forefront of the immigration debate, potentially facing not just economic impacts but social and political upheaval as well.
These cities, along with others like San Diego and Las Vegas, are not just facing potential economic disruptions. They are staring down the barrel of profound social change. Family separations, community fragmentation, and the erosion of cultural enclaves built over generations are all possible consequences of mass deportations. Moreover, the fiscal implications are staggering. Undocumented immigrants contribute billions in taxes annually, often without receiving the full benefits of their contributions. Their sudden absence could leave gaping holes in city budgets, potentially affecting public services and infrastructure projects.
As these urban centers brace for impact, the debate rages on. Supporters of stricter immigration policies argue for the need to enforce laws and protect American jobs. Critics warn of economic devastation and the unraveling of America’s urban fabric. What’s clear is that America’s cities stand at a crossroads. The coming months and years will likely reshape urban landscapes in ways both visible and invisible. From the foods we eat to the services we rely on, from the neighborhoods we call home to the very character of our cities, the impacts of this proposed immigration crackdown could be far-reaching and long-lasting. As the nation watches and waits, these cities – vibrant, diverse, and economically vital – find themselves on the front lines of a policy that could redefine what it means to be an American city in the 21st century.
Bolanle Media is excited to announce our partnership with The Newbie Film Academy to offer comprehensive courses designed specifically for aspiring filmmakers. Whether you’re just starting out or looking to enhance your skills, our resources will provide you with the tools and knowledge needed to succeed in the competitive world of screenwriting. Join us today to unlock your creative potential and take your first steps toward crafting compelling stories that resonate with audiences. Let’s turn your ideas into impactful scripts together!
Business
How Trump’s Deportation Plans Could Reshape Major Cities
In the wake of Donald Trump’s recent election victory, his ambitious plans for mass deportations have thrust America’s urban centers into the spotlight. As the nation grapples with the potential implications of what Trump calls “the largest deportation operation in American history,” cities across the country are bracing for significant changes that could reshape their economic, social, and cultural landscapes.
The stakes are particularly high for metropolitan areas like New York, Los Angeles, Houston, Dallas, and Miami, which host the largest populations of unauthorized immigrants. These cities, along with other major urban hubs such as Chicago, Washington D.C., and San Francisco, stand at the forefront of a looming transformation that could reverberate throughout the nation.
Economic Tremors
Economists warn that the proposed deportations could send shockwaves through urban economies. Mark Zandi, chief economist at Moody’s, cautions that businesses would face “significant challenges” if a substantial number of immigrants were removed. Industries such as construction, hospitality, and healthcare—pillars of urban economies—could face severe labor shortages.
Joe Brusuelas, chief economist at RSM, emphasizes the potential ripple effects: “The native-born workforce cannot meet current labor demands.” This labor gap could lead to increased wages, potentially rekindling inflation—a concern that looms large over city planners and policymakers alike.
Community Fabric Under Strain
Beyond economic considerations, the social fabric of cities hangs in the balance. Elena, a Nicaraguan immigrant in Houston, voices a fear echoed in immigrant communities across the nation: “I’m scared… This is my home.” The threat of family separations, particularly in mixed-status households, casts a long shadow over urban neighborhoods.
Immigrant advocacy groups like FIEL are mobilizing, advising clients to prepare for “anything that can happen.” This atmosphere of uncertainty could lead to decreased community engagement and cooperation with local authorities, potentially impacting public safety and community cohesion.
Cities at a Crossroads
As the debate intensifies, cities find themselves at a crossroads. Some, like New York and Los Angeles, have historically positioned themselves as “sanctuary cities,” often at odds with federal immigration enforcement. The impending clash between federal policy and local governance promises to be a defining feature of this new political landscape.
Meanwhile, the logistical challenges of implementing such a massive deportation operation remain daunting. Questions abound regarding detention facilities, transportation networks, and the sheer manpower required to carry out Trump’s vision.
Looking Ahead
As America’s urban centers brace for potential change, the full impact of Trump’s deportation plans remains to be seen. Legal challenges are all but certain, and the resilience of America’s cities will be put to the test.
What is clear is that the coming months and years will be pivotal for urban America. As Jason Miller, a senior Trump adviser, puts it, the plan is to “immediately reinstate” immigration policies from Trump’s first term. For America’s cities, this could mean a period of unprecedented change, challenge, and, potentially, transformation.
As the nation watches and waits, the story of America’s cities in the face of this ambitious deportation plan is just beginning to unfold. The outcome will undoubtedly shape the future of urban life in America for years to come.
Bolanle Media is excited to announce our partnership with The Newbie Film Academy to offer comprehensive courses designed specifically for aspiring screenwriters. Whether you’re just starting out or looking to enhance your skills, our resources will provide you with the tools and knowledge needed to succeed in the competitive world of screenwriting. Join us today to unlock your creative potential and take your first steps toward crafting compelling stories that resonate with audiences. Let’s turn your ideas into impactful scripts together!
Business
Donald Trump Wins 2024 USA Election
Based on the election results, Donald Trump has indeed won the 2024 U.S. presidential election, defeating Vice President Kamala Harris. Here’s an analysis of the key statistics and implications:
Electoral College Victory
Donald Trump has secured the presidency by winning crucial battleground states and flipping some key states that were previously held by Democrats. The final Electoral College tally is still being determined, but Trump has surpassed the 270 electoral votes needed to win.
Battleground State Performance
Trump’s victory was largely secured by winning several critical swing states:
- Wisconsin: Trump’s win here was pivotal in securing his path to victory.
- Pennsylvania: This state flipped back to Republican control.
- Georgia: Another key state that Trump managed to win back.
- Michigan: Trump successfully flipped this traditionally Democratic stronghold.
Popular Vote and Voter Priorities
While the final popular vote tally is still being calculated, exit polls provide insight into voter priorities:
- Economy and democracy were top concerns for voters.
- Abortion and immigration also played significant roles in voter decision-making.
Congressional Control
The election results extend beyond the presidency:
- Republicans are set to take back the Senate majority, securing at least 51 seats.
- Control of the House of Representatives remains undetermined.
Media Implications
The outcome of this election could be seen as a challenge to mainstream media narratives for several reasons:
- Polling Discrepancies: Many pre-election polls suggested a tight race or even a slight Harris advantage in key states. Trump’s victory, particularly in battleground states, may indicate that polls underestimated his support.
- Narrative Shifts: Throughout the campaign, much of the mainstream media focused on Trump’s legal challenges and controversies. His victory suggests that these issues may not have resonated with voters as much as economic and policy concerns.
- Voter Priorities: The emphasis on issues like the economy and immigration in voter decision-making may indicate a disconnect between media focus and voter concerns.
- Electoral Predictions: Many mainstream outlets were cautious about predicting a Trump victory, even as results began to favor him. This hesitancy could be seen as a reflection of broader media skepticism about Trump’s chances.
- Underestimation of Trump’s Base: The results suggest that Trump’s core support remained strong and potentially grew, despite negative coverage in much of the mainstream media.
It’s important to note that while the election outcome may challenge some media narratives, it doesn’t necessarily invalidate all mainstream reporting. The complex factors influencing voter behavior and the challenges of accurate political forecasting remain subjects of ongoing analysis and debate.
As the dust settles on this historic election, both the media and political analysts will likely engage in extensive reflection on the factors that led to Trump’s victory and the implications for future political coverage and analysis.
Bolanle Media is excited to announce our partnership with The Newbie Film Academy to offer comprehensive courses designed specifically for aspiring screenwriters. Whether you’re just starting out or looking to enhance your skills, our resources will provide you with the tools and knowledge needed to succeed in the competitive world of screenwriting. Join us today to unlock your creative potential and take your first steps toward crafting compelling stories that resonate with audiences. Let’s turn your ideas into impactful scripts together!
-
Advice4 weeks ago
How Community Engagement Ignites Cultural Phenomena
-
Entertainment1 day ago
What Chris Tucker and Jackie Chan Teach Us About On-Screen Chemistry
-
Advice5 days ago
The Impact of Music on Film Pacing
-
Advice1 week ago
Master the Art of Film Casting
-
Advice1 week ago
How to Create Unforgettable Movie Scenes
-
Advice2 weeks ago
A Reality Check for Aspiring Filmmakers
-
Advice1 week ago
Reinventing Genres: Tips for Filmmakers
-
Advice1 week ago
Screenwriting Tips for Aspiring Filmmakers