Biden ignores question on whether he will cancel $10,000 in student debt — something he promised to do during his campaign
During his first solo press conference of 2022, Biden was asked whether he plans to cancel student debt broadly. He simply did not answer.At the end of a nearly two-hour press conference on Wednesday, in which Biden was asked about a range of issues from voting rights to foreign policy, a reporter wrapped up the conference with what she said were "two very simple questions.
Navient, one of the nation's largest student loan services, agreed Thursday to pay nearly $2 billion to settle claims by 38 states and the District of Columbia it deceived thousands of borrows into costly, long-term, forbearance plans that caused students to pay more than they should have.
"They ran a multi-billion dollar scam," Pennsylvania Attorney General Josh Shapiro said during a news conference announcing the settlement agreement.
MORE: Biden extends student loan payment pause until May
Navient, formerly known as Sally Mae, burdened struggling students with debt, the attorneys general said, by pushing them into subprime, private loans they knew most would be unable to repay.
University of Michigan Reaches $490M Settlement with More than 1,000 Sexual Assault Accusers
Robert Anderson, the late sports doctor who worked with UMich for 37 years, was accused of sexually assaulting at least 1,050 people between 1966 and his 2003 retirementThe University of Michigan has agreed to pay $490 million to more than 1,000 people who claim they were sexually assaulted by a former sports doctor over the course of his nearly four-decade career with the school.
"So many people are trapped in unaffordable student loan debt," Massachusetts Attorney General Maura Healey said. "These loans were doomed to fail from the start and Navient knew it."
Navient also steered students into forbearances instead of counseling them about a more affordable repayment plan.
"What Navient did was deceive them," Washington Attorney General Bob Ferguson. "All they got was a push into a bad plan, this forbearance plan."
When students stopped making payments, as forbearance allows, the debt piled up. The agreement cancels nearly $1.7 billion dollars in balances owed by 66,000 borrowers nationwide.
Borrowers receiving private loan debt cancellation will receive a notice from Navient, along with refunds of any payments made on the cancelled private loans after June 30, 2021. Federal loan borrowers who are eligible for a restitution payment of approximately $260 will receive a postcard in the mail from the settlement administrator later this spring.
University of Michigan agrees to $490M settlement with alleged sexual abuse victims of former sports doctor
The lawsuits stated that Dr. Robert Anderson, who died in 2008, sexually assaulted people -- including the school's athletes -- during routine medical examinations . "It has been a long and challenging journey, and I believe this settlement will provide justice and healing for the many brave men and women who refused to be silenced," Stinar told the AP.Stinar clarified that $460 million of the settlement will go to the victims while $30 million will be for any future accusers that may come forward.Anderson worked at the University of Michigan from 1966 until he retired in 2003.
MORE: Progressives warn inaction on student debt could hurt Democrats in midterms
Navient has denied any violation of the law. "The company's decision to resolve these matters, which were based on unfounded claims, allows us to avoid the additional burden, expense, time and distraction to prevail in court," said Navient's chief legal officer Mark Heleen in a statement.
The settlement includes the states of Arizona, Arkansas, California, Colorado, Connecticut, Delaware, Florida, Georgia, Hawaii, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Minnesota, Missouri, Nebraska, Nevada, New Jersey, New Mexico, New York, North Carolina, Ohio, Oregon, Pennsylvania, Rhode Island, South Carolina, Tennessee, Vermont, Virginia, Washington, West Virginia, Wisconsin, and the District of Columbia.
"Today's billion-dollar agreement will bring relief to thousands of borrowers in New York and across the nation and help them get back on their feet. Navient will no longer be able to line its pockets at the expense of students who are trying to earn a college degree," New York Attorney General Letitia James said in a statement Thursday.
"Americans across the nation are struggling with their student loan debt," Illinois Attorney General Kwame Raoul said, adding Navient "buried students into debt" with private loans they could never repay. "Today's settlement provides substantial student loan relief."
On the Money — SCOTUS strikes down Biden vax-or-test rules .
Happy Thursday and welcome to On The Money, your nightly guide to everything affecting your bills, bank account and bottom line. Subscribe here: thehill.com/newsletter-signup. Today's Big Deal: The Supreme Court just gutted President Biden's private sector vaccine mandate. We'll also look at progress toward an annual spending deal, Lael Brainard's confirmation hearing and a big victory for defrauded student debtors. But first, find out why theToday's Big Deal: The Supreme Court just gutted President Biden's private sector vaccine mandate. We'll also look at progress toward an annual spending deal, Lael Brainard's confirmation hearing and a big victory for defrauded student debtors.