Department of Education extends application deadline for defaulted student loan borrowers
The Department of Education (DOE) extended its deadline for the Fresh Start program for defaulted student loan borrowers until the morning of Wednesday, Oct. 2. The deadline was supposed to be Monday, Sept. 30, but the department pushed it back because of an issue on one of its websites.
The Fresh Start program is open to only a limited number of student loan borrowers. It will put them back in good standing on their loans, avoiding the impacts of delinquency and default, like taking a hit on their credit report, wage garnishment and the potential for having their Social Security benefits withheld in the future.
The Education Department said as of 2022, there were about 7.5 million federal student loan borrowers in default.
⚠ Borrowers in default: The deadline to sign up for Fresh Start benefits has been extended. Borrowers should enroll by 2:59 a.m. Eastern time on Wednesday, Oct. 2. Apply online, on the phone, or by mail: https://t.co/jbS9cxGBHX If you experience issues signing up online or by… pic.twitter.com/xlsQJv5Ngs
Pew study unveils rising student debt straining young Americans
Americans are grappling with approximately $1.6 trillion in student loan debt as of June 2024, a significant 42% increase from a decade ago. This rise coincides with more young adults attending college and an escalation in higher education costs.
This figure declines with age — 14% among those aged 40 to 49, and only 4% among those 50 and older. Student loans are predominantly held by those with at least a four-year college degree.
The survey highlights disparities in debt levels based on education level. For instance, individuals who attended some college but did not earn a bachelor’s degree have median debts ranging from $10,000 to $14,999. Those with postgraduate degrees typically owe between $40,000 and $49,999.
The financial strain is particularly evident among younger borrowers, especially those aged 25 to 39 with student loans, who report greater financial hardship compared to their peers without debt.
Despite earning higher household incomes facilitated by higher education, about 35% of these indebted college graduates believe the financial costs of their education were not worth the benefits, compared to 16% of those without loans.
Americans lose confidence college is worth it, skilled trades on the rise
As more Americans lose confidence that a college degree is actually worth it, a new study points to some potentially good news for the post-secondary schools. The number of high school graduates who chose to enroll in college held steady from 2022 to 2023, and both years were a big improvement over enrollment numbers during the COVID-19 pandemic in 2020 and 2021.
Still, four years after the pandemic began, there are 900,000 fewer undergraduate students enrolling in college. College costs continue to rise and not wanting to accrue student loan debt has many high schoolers looking at other plans for after they graduate.
A separate recent study found nearly half (49%) of high schoolers believe a high school diploma, trade program, two-year degree or other type of enrichment program is the highest level of education needed for their anticipated career path. And even those planning on going to college believe on-the-job training and experience is more beneficial than getting a higher education degree, with 56% of them saying so.
A third study found a majority of those with student loan debt said their degree wasn’t worth it. While more than half (53%) said knowing they’d have to take on debt has stopped them from pursuing more education.
The Department of Labor says in the decade from 2012 to 2121, the number of registered apprentices jumped 64%. Just between 2022 and 2023 enrollment in vocational programs spiked 16%.
The Department of Education also found those who go to trade schools are more likely to find a job after going to school than those who take the traditional college route and are more likely to actually work in their field of study.
It’s also worth noting more and more Americans think two-year post-secondary schools are a better bang for your buck. In a recent Gallup survey, more than half (55%) said a degree from a two-year school is worth it while 18% believed the same thing about four-year colleges.
Navient banned from student loans, ordered to pay $120 million in settlement
In a settlement, Navient is permanently banned from servicing federal student loans and must pay $120 million in penalties and borrower relief. The Consumer Financial Protection Bureau (CFPB) accused Navient of steering struggling borrowers into costly forbearance options instead of income-driven repayment plans, mishandling payment processing, and harming the credit of disabled borrowers.
Navient allegedly enrolled 1.5 million borrowers in multiple consecutive forbearances, resulting in $4 billion in additional interest charges.
In a statement, Navient says it does not agree with the CFPB’s allegations. However, the company states, “This agreement puts these decade-old issues behind us.”
Under the settlement, Navient is banned from serving federal student loans. Navient will also pay a $20 million penalty and provide $100 million in relief to affected borrowers.
The CFPB said it will mail checks to eligible borrowers, and affected consumers will not need to do anything to obtain redress.
US charges 6 Hamas leaders with terrorism over Oct. 7 attack
The U.S. Department of Justice has announced terrorism charges against senior leaders of Hamas. And with the kickoff to a new NFL season a day away, betting on the games is expected to break records. These stories and more highlight The Morning Rundown for Wednesday, Sept. 4, 2024.
US charges 6 Hamas leaders with terrorism over Oct. 7 attack
The Department of Justice has announced charges against six senior Hamas officials for killing at least 43 Americans since the terrorist attack on Oct. 7, 2023, in Israel. Nearly a year later, there are mass protests taking place in the streets of Israel after six more bodies of hostages were recovered.
U.S. Attorney General Merrick Garland said the federal charges unsealed Tuesday, Sept. 3, won’t be the last efforts by the DOJ to hold Hamas accountable for its heinous crimes.
Justice Department Announces Terrorism Charges Against Senior Leaders of Hamas pic.twitter.com/z8gS2lUGvV
“On Oct. 7, Hamas terrorists murdered nearly 1,200 people, including over 40 Americans, and kidnapped hundreds of civilians,” Garland said. “They perpetrated the deadliest massacre of Jews since the Holocaust. The charges unsealed today are just one part of our effort to target every aspect of Hamas’ operations. These actions will not be our last.”
The recovery of the bodies of Goldberg-Polin and five other hostages in Gaza sparked a massive round of protests in Israel. Thousands of people are calling for more action to be taken to see the release of the remaining hostages.
The charges filed against six Hamas leaders include conspiracy to provide material support to a terrorist organization, conspiracy to murder U.S. Nationals, and conspiracy to use weapons of mass destruction.
However, of the six Hamas officials charged, three of them are already dead. The other three have not yet been captured.
Zelenskyy: Ukraine to hold onto Russian territories ‘indefinitely’
Ukrainian President Volodymyr Zelenskyy says Kyiv will be holding on to the Russian territories it seized last month indefinitely as its war with Russia stretches on. It’s part of a plan to force Russian President Vladimir Putin to the negotiating table.
Almost a month ago, Ukrainian troops took over Russia’s Kursk region in an unexpected operation. Ukraine now claims it controls nearly 500 square miles of Russian territory and has taken hundreds of Russian prisoners of war.
In an interview with NBC News, Zelenskyy would not discuss whether Ukraine planned to try to seize more Russian territory.
The interview aired hours before Ukraine’s foreign minister resigned Wednesday, Sept. 4, as a Ukraine parliament deputy warned it would be the “day of resignations,” with more than half of Zelenskyy’s cabinet members expected to be replaced.
Harris to announce economic plans, Trump to hold town hall
There are now less than nine weeks until Election Day and both presidential candidates will be on the road today.
The Democratic nominee, Vice President Kamala Harris, is set to give a speech in New Hampshire, unveiling plans for new benefits for entrepreneurs and small businesses. Those plans are set to include a tax deduction of up to $50,000 for starting a small business; ten times the $5,000 amount currently granted to small businesses in their first year.
She is also set to announce a goal of 25 million small business applications during her first term if she’s elected president. That would surpass the 19 million new small businesses under the Biden administration.
Meanwhile, Republican presidential nominee former President Donald Trump will be holding a town hall in the battleground state of Pennsylvania.
He’ll take questions during the event at the Farm Show Complex in Harrisburg hosted by Fox News’ Sean Hannity. The town hall will air Wednesday night on the network.
Both vice presidential candidates are also holding events Wednesday. Democratic Minnesota Gov. Tim Walz is set to be in Pennsylvania and Republican Ohio Sen. JD Vance in Arizona.
Federal judge won’t intervene in Trump’s New York criminal case
A federal judge has rejected former President Trump’s request to intervene in his New York criminal case. Trump’s lawyers were hoping to move the case to federal court so they could try to have his conviction overturned in the wake of the Supreme Court’s presidential immunity ruling.
The lawsuit brought by six Republican states and led by Missouri Attorney General Andrew Bailey alleges they have documents proving the Biden administration plans to begin canceling loans this week, even though a cancellation plan technically does not exist yet.
Usually, states cannot file to block federal regulation until it’s officially in place, but in this case, the states say they have proof the secretary of education is implementing the plan without one officially being in place.
The lawsuit claims the administration has been planning this move since May. The Education Department has not commented on the pending litigation.
$35 billion expected to be bet on NFL this season
The NFL’s 2024 season kicks off Thursday, Sept. 5, and the American Gaming Association predicts Americans are about to dish out the big bucks betting on games. They say $35 billion will be placed in legal wagers this season.
If the association is right, that would be a roughly 30% increase from the amount bet on the NFL in the 2023 season.
Last season there was nearly $27 billion spent on legally betting on NFL games. Since then, even more states have passed laws to allow for legal betting markets, including North Carolina, Maine, and Vermont.
Betting is now legal in 38 states and Washington D.C.
The American Gaming Association said more bets are placed and more money is wagered on the NFL than any other league.
Supreme Court won’t revive Biden’s student loan debt forgiveness plan
The U.S. Supreme Court dealt a significant setback to the Biden administration’s efforts to provide student debt relief, declining on Wednesday, Aug. 28, to reinstate the SAVE Plan, a key part of the administration’s broader strategy to ease the financial burden on millions of Americans. This decision leaves borrowers in limbo as legal challenges from GOP-led states continue to play out in the courts.
The SAVE Plan, rolled out in July 2023, is an income-driven repayment program that lowers monthly payments and offers earlier loan forgiveness for borrowers with smaller balances. Under the plan, borrowers with loans of $12,000 or less could see their debt wiped away after 10 years of payments, a reduction from the previous 20 to 25 years.
The plan also adjusts the percentage of discretionary income that borrowers must pay from 10% to 5%, with discretionary income redefined to exclude those earning less than 225% of the federal poverty line.
The Supreme Court’s decision to leave an injunction from the U.S. Court of Appeals for the 8th Circuit in place means that the program remains blocked for now. The Education Department had already paused loan payments for those enrolled in the SAVE Plan due to the ongoing legal battles.
This legal struggle follows the Supreme Court’s rejection last year of a more ambitious plan by the Biden administration that aimed to cancel over $400 billion in student loans, affecting more than 40 million Americans. The new SAVE Plan, though less sweeping, still faces fierce opposition, with critics arguing that it effectively forgives loans without proper congressional authorization.
The estimated cost of the SAVE Plan has been a major point of contention. While the Biden administration estimates the plan will cost nearly $156 billion over a decade, critics argue that the true cost could be as high as $475 billion.
Controversy over Trump photos at Arlington National Cemetery
Former President Donald Trump’s running mate has harsh words for Vice President Kamala Harris amid controversy over Trump’s visit to Arlington National Cemetery this week. And Israel’s military has launched a massive incursion into the West Bank as concerns grow over a broadening war. These stories and more highlight The Morning Rundown for Thursday, Aug. 29, 2024.
Controversy over Trump photos at Arlington National Cemetery
There’s controversy on the campaign trail after former President Donald Trump’s visit to Arlington National Cemetery earlier this week. He was there to mark three years since the United States’ withdrawal from Afghanistan.
Two Trump campaign officials had a “verbal and physical altercation” with a cemetery official during Monday’s, Aug. 26, ceremony honoring the 13 U.S. military service members killed in a bombing at Kabul’s airport in 2021, according to NPR.
Sources with knowledge of the incident told multiple news outlets the former president’s campaign had been warned not to take any pictures or videos in the area known as Section 60, but they did so anyway. Section 60 is the part of the cemetery dedicated to military personnel killed while fighting in Afghanistan and Iraq.
Cemetery officials released a statement confirming “an incident” had occurred and a report had been filed but did not give details about what had happened.
Late Tuesday night, Aug. 27, Trump posted a photo on his Truth Social platform of the Gold Star families who had invited him to the ceremony. In the post, family members said they had invited the campaign to film in Section 60.
However, cemetery officials say that wasn’t their call to make. Federal law prohibits political campaign or election-related activities within army national military cemeteries.
Trump’s running mate, Ohio Sen. JD Vance, touched on the incident during a rally in Pennsylvania Wednesday, Aug. 28, dismissing the allegations.
“Three years ago, 13 brave, innocent Americans died, and they died because Kamala Harris refused to do her job and there hasn’t been a single investigation or a single firing,” Vance said. “I don’t, I don’t — look, sometimes mistakes happen. That’s just the nature of government, the nature of military service. But to have those 13 Americans lose their lives and not fire a single person is disgraceful. Kamala Harris is disgraceful.”
Vance also blasted Trump’s Democratic opponent, Vice President Kamala Harris, for how the Biden administration handled the withdrawal from Afghanistan.
“And she wants to yell at Donald Trump because he showed up?” he said. “She can… she can go to hell.”
The Harris campaign has declined to comment on Vance’s remarks as well as the reports of an altercation at Arlington.
Harris, Walz to sit down for first TV interview of campaign
Vice President Harris and her running mate, Minnesota Gov. Tim Walz will take part in their first joint interview since their campaign together began on Thursday, Aug. 29. This interview marks Harris’ first formal sit-down as the 2024 Democratic presidential candidate and comes at a critical time as she faces criticism for her lack of media engagement.
Since President Joe Biden withdrew from the race and endorsed her, Harris has been criticized for not participating in interviews or holding press conferences.
Their interview with CNN’s Dana Bash comes as the Harris campaign kicks off a bus tour of swing state Georgia. It will air at 9 p.m. ET.
At least 10 dead amid large-scale Israeli military operation in West Bank
The Israeli military launched its largest incursion into the occupied West Bank in decades on Wednesday. At least 10 Palestinian militants were killed in what the IDF described as a “counterterrorism operation.”
Hundreds of Israeli troops took part in the overnight raids targeting Palestinian militants after months of increasing attacks. These raids have raised concerns about the potential for the Israel-Hamas War to escalate further.
The IDF’s international spokesperson said in a briefing Israel had identified a quote “systematic strategy in Iran” of smuggling weapons and explosives into the West Bank.
The United Nations’ secretary general has called on Israel to immediately end the operation, saying it’s “fueling an already explosive situation and further undermining the Palestinian authority.”
The Supreme Court declined to reinstate the Biden administration’s latest student debt cancellation plan, leaving millions of borrowers in limbo as legal challenges continue. The justices turned down a request from the Justice Department to lift an appeals court order blocking the SAVE plan.
SAVE is an income-driven repayment program designed to lower monthly payments and offer earlier loan forgiveness. The save plan is part of President Biden’s broader effort to reduce the financial burden on about 43 million Americans with student debt.
The plan’s estimated cost has been a point of contention, with critics arguing it effectively forgives loans without proper authorization.
CrowdStrike offers $60M in credits; Delta reports $500M loss
CrowdStrike is offering $60 million in credits to customers impacted by a massive software outage earlier this year, but the true cost of the incident might be much higher. Delta Air Lines — the most affected client — claims it lost around $500 million due to the outage, which disrupted flights and operations.
Despite these challenges, CrowdStrike reported a strong quarter with $260.8 million dollars in adjusted earnings. That’s a 47% increase from last year.
However, the company has revised its full-year earnings forecast downward, reflecting the expected costs of customer compensation.
Moody’s downgraded CrowdStrike’s outlook from positive to neutral, raising concerns about the company’s ability to retain customer trust after the incident.
NASA’s Perseverance rover begins steep climb up Mars crater
NASA’s Perseverance rover has set off on a “road trip” of sorts across Mars. The rover has been wandering the red planet’s Jezero Crater since 2021.
So far, it’s found evidence of ancient flash floods and collected several rock samples, which NASA plans to bring back to Earth on a future mission. Now, the rover is expected to spend the next few months making a steep climb up to the western rim of the crater.
Scientists believe the 28-mile-wide crater was once home to a river delta and they’re hoping samples taken by Perseverance will help them piece together an idea of what Mars’ climate was like billions of years ago and whether it sustained life.
Student loan forgiveness sees relief for some, while many still struggle
Around 943,000 people have had their student loans forgiven by the federal government over U.S. President Joe Biden’s term in office, according to a recent report by The Wall Street Journal. However, in some cases, it hasn’t provided the financial security some were hoping for.
According to the report, despite the large number of people’s loans forgiven, many still struggle with other debts and poor credit scores. According to the Education Data Initiative, the average student loan debt in the U.S. is around $38,000 for federal loans and over $40,000 when private loans are included.
Under the Public Service Loan Forgiveness Plan (PSLF), many borrowers saw some or all of their debts wiped away after making the equivalent of 120 qualifying payments while working in public service or nonprofit sectors. According to the Journal, even with relief, many borrowers still find themselves in a debt cycle.
Researchers say that some borrowers opt to replace their student debt with other forms of debt, such as credit cards, auto loans and home loans. In The Journal’s article, a professor who had $90,000 in loans wiped away said the relief was like “taking sandbags off her back,” but said it wasn’t life-changing.
While forgiveness programs are making an impact, borrowers are still navigating a complex financial landscape, beyond just student debt.
Only about 1/3 of Americans think college is worth it
More Americans are losing confidence that a college degree is actually worth it. A new Gallup poll shows only about a third of Americans say they have a “great deal” or “a lot” of confidence in higher education, down significantly over the past decade.
In 2015, 57% had a lot of confidence in higher education.
The amount of people who have little or no confidence in the U.S. college system is on the rise as another third of people said they feel that way. Only 10% had little or no confidence in 2015.
According to the recent Gallup survey, lower levels of confidence in higher education stem primarily from concerns in three areas: too much focus on political agendas, failing to teach relevant skills and being too expensive.
However, a separate Gallup poll found confidence in two-year schools is going up. About half of respondents (48%) said they had a great deal or quite a lot of confidence in community colleges compared to four-year colleges and universities.
The differences were also dramatic. For instance, 58% of Americans have high confidence two-year schools provide an affordable education, while only 11% agree with that about four-year schools. And more than half (55%) say a degree from a two-year college is worth it, compared to only 18% who feel that way about four-year universities.
The waning view of whether college is worth the time and money is consistent across all demographics, including gender, age and political affiliation.
Biden issues warning after immunity ruling as Trump looks to overturn conviction
Reaction from President Joe Biden and former President Donald Trump after the Supreme Court’s historic ruling on presidential immunity. And Hurricane Beryl strengthens to a Category 5 as it approaches Jamaica. These stories and more highlight The Morning Rundown for Tuesday, July 2, 2024
Biden issues warning after SCOTUS ruling as Trump looks to overturn conviction
In a landmark 6-3 vote along ideological lines the Supreme Court justices ruled Monday, July 1, that former President Donald Trump is entitled to immunity for official acts he took while in office. The effects of the court’s decision will be seen in the coming days.
The high court’s ruling gave Trump some immunity from being criminally prosecuted on charges of attempting to overturn the 2020 election, however, it did not totally dismiss Special Counsel Jack Smith’s case. The former president is reportedly looking to have his New York trial conviction overturned based on the Supreme Court’s decision.
According to Trump’s legal team, the Manhattan jury’s verdict that found him guilty of falsifying business records should be overturned because the jurors saw evidence during trial that they now consider to be protected. Trump’s lawyers are seeking a delay in Trump’s sentencing so they can have more time to make their case. Trump’s sentencing is currently scheduled for July 11.
In the Supreme Court’s opinion, Chief Justice John Roberts wrote, “The president is not above the law. But … the president may not be prosecuted for exercising his core constitutional powers.”
After that decision came down, Trump posted on his social media platform Truth Social saying, “Big win for our Constitution and democracy. Proud to be an American.”
BIG WIN FOR OUR CONSTITUTION AND DEMOCRACY. PROUD TO BE AN AMERICAN!
— Donald J. Trump Posts From His Truth Social (@TrumpDailyPosts) July 1, 2024
Meanwhile, President Joe Biden decided the historic ruling warranted a primetime address. In it, he warned of what he called a “dangerous precedent.”
Biden calling the ruling a, “disservice to the people of this nation,” saying the decision means there are “virtually no limits on what a president can do.”
“This nation was founded on the principle that there are no kings in America,” the president said. “Each of us is equal before the law. No one, no one is above the law, not even the President of the United States. [With] today’s Supreme Court decision on presidential immunity, that fundamentally changed for all practical purposes.”
Biden repeated Justice Sonia Sotomayer’s dissent, saying the ruling makes the president “now a king above the law.”
In response, Trump posted that the primetime address was just meant to deflect from Biden’s “horrible campaign performance.”
Steve Bannon begins 4-month prison sentence for contempt of Congress
“I’m proud to go to prison,” he said in a press conference before turning himself over to authorities. “I am proud of going to prison today.”
The longtime Trump ally was convicted of contempt for defying a congressional subpoena from the committee that probed the Jan. 6, 2021, U.S. Capitol attack.
“If this is what it takes to stand up to tyranny, if that’s what it takes to stand up to the [Attorney General Merrick] Garland corrupt criminal DOJ, if this is what it takes to stand up to Nancy Pelosi, if this is what it takes to stand up to Joe Biden, I’m proud to do it,” Bannon said. “I was on a destroyer for four years in the Navy. I am prepared for whatever prison has, right? Our prisons are run very well. The Bureau of Prisons does a great job. I’m prepared to do this, whatever task I do, I’m totally prepared mentally, physically, everything, for prison.”
In an interview Monday, former President Trump blamed President Biden for what he claims is a “weaponization” of the justice system, saying Biden is “going to pay a big price” for it. Trump’s campaign told ABC News Trump’s statement meant Biden will lose the election come November.
Iran, Syria, North Korea sued in connection with Oct. 7 Israel attack
More than 100 victims and families of victims of Hamas’ Oct. 7 attack on Israel are suing Iran, Syria and North Korea. They said the countries provided the terrorist organization the money, weapons and instruction to carry out the deadly attack.
📢 BREAKING: ADL filed a federal lawsuit today against Iran, Syria and North Korea for providing material support to Hamas to commit atrocities in Israel on Oct 7, 2023. These state sponsors of terror must be held accountable. 🧵https://t.co/hfIcxLKyz5pic.twitter.com/CUdQWDhQJ5
The lawsuit, which was filed in a New York court, seeks at least $4 billion in damages for the attack. The suit was filed by the Anti-Defamation League — a Jewish advocacy organization — and is the largest case against foreign countries in connection with the attack.
This comes as the Israeli army ordered a mass evacuation of Palestinians from much of the southern Gaza city Khan Younis on Monday, July 1, signaling troops are likely to launch a new ground assault into the strip’s second-largest city.
The call to move toward the Al Mawasi Humanitarian Zone does not apply to the patients in the European Hospital or the medical staff working there.
There is no intention to evacuate the European Hospital in the Khan Yunis area. https://t.co/MditW1DJ9g
Hurricane Beryl now a Category 5 storm, heads for Jamaica
Hurricane Beryl is now a Category 5 storm. This is the earliest on record that a hurricane in the Atlantic has reached the highest category there is, with wind speeds above 160 miles per hour.
— NOAA Aircraft Operations Center (@NOAA_HurrHunter) July 1, 2024
It made landfall on the Caribbean’s Windward Islands on Monday as a Category 4 storm. Many are still without power or water and at least one death has been reported.
Beryl is only the second Category 5 Atlantic storm to be recorded in July.
Biden student loan repayment plan allowed to proceed
In a small victory for the Biden administration, a federal appeals court will allow the Department of Education to move forward with lowering millions of student loan borrowers’ monthly payments in July. The move comes as the administration faces two legal battles over the repayment plan known as SAVE, which launched in 2023.
A federal judge in Kansas issued an injunction blocking the plan from taking effect on July 1. The Department of Justice quickly appealed.
New: The 10th Circuit has GRANTED @usedgov's request to stay the Kansas court's decision to block parts of the SAVE plan. Unclear yet what this will look like for borrowers (ED placed 3M of them on forbearance last week in light of the rulings). pic.twitter.com/XO9EsoQgls
Under SAVE, many borrowers will pay only 5% of their discretionary income toward their debt every month, and anyone making $32,800 dollars or less will have no monthly payment.
On the other income-driven repayment plans, borrowers pay at least 10% of their discretionary income.
After twice breaking the U.S. record for under-18 runners at the Olympic trials, it was confirmed Monday, July 1, Wilson will be joining Team USA at the Paris summer games later this month.
Teenaged phenom Quincy Wilson, 16, is headed to Paris as part of the U.S. men's 4×400 Olympic relay squad, his coach confirmed on Monday.
He's the youngest American male track athlete to appear at an Olympics 👏
Wilson will be part of the team that runs the 4x400m relay, making him the youngest American male track athlete to appear at an Olympics. Wilson’s team will formally be announced next week.