Defrauded college students will no longer be taxed on their canceled loans | Washington Post
Student loan borrowers whose education debt has been canceled because their college closed or engaged in fraud will no longer face a tax bill, relief that arrives as applications for forgiveness continue to grow. On Wednesday, the Internal Revenue Service issued guidance shielding borrowers from having their discharged federal and private loans treated as taxable income. The measure is effective for education loans canceled on or after Jan. 1, 2016. Anyone affected by the new policy may claim a credit or refund for an overpayment of taxes.
Canceling Student Debt Is Easier Than It Sounds | NPR
Sen. Elizabeth Warren, D-Mass., has pledged to cancel up to $50,000 of debt for 95% of student loan borrowers if she is elected president. Sen. Bernie Sanders, I-Vt., has proposed an even more generous plan if he’s elected.
White House contender Warren sees path to cancel student loan debt without Congress | Reuters
Democrat Elizabeth Warren outlined on Tuesday how, if elected to the White House, she would on the first day of her presidency cancel federal student loan debt by using the Department of Education’s pre-existing authority.
Warren Would Bypass Congress to Cancel Federal Student Debt | Bloomberg
Senator Elizabeth Warren proposed Tuesday to ease federal student loan debt with executive authority, in a policy rollout aimed at attracting young voters. Warren said that as president, she would not wait for Congress to approve her plans to cancel or modify federal student debt. Instead, she would directly authorize the Department of Education to provide as much as $50,000 in relief to about 95% of student loan borrowers.
Elizabeth Warren says she will use presidential authority to cancel student loan debt if elected | Boston Globe
White House Contender Warren Sees Path to Cancel Student Loan Debt Without Congress | New York Times
Democrat Elizabeth Warren outlined on Tuesday how, if elected to the White House, she would on the first day of her presidency cancel federal student loan debt by using the Department of Education’s pre-existing authority. Warren had previously called for the cancellation of up to $50,000 in student loan debt for each of about 42 million borrowers, but had not outlined the specific steps she would take or the timing.
Warren vows to cancel college debt without awaiting Congress | Associated Press
Presidential candidate Elizabeth Warren says she’d order her secretary of education to cancel up to $50,000 in college debt for about 95% of student borrowers on her first day in office, effectively erasing outstanding loans for about 42 million Americans. The Democratic senator from Massachusetts vowed in a proposal released Tuesday to act immediately and not wait for Congress because the secretary of education already has broad authority to compromise on and modify student loans.
Warren says she would cancel student debt on Day 1, citing legal authority of Department of Ed | USA Today
Sen. Elizabeth Warren would capitalize on the federal government’s current legal authority and begin canceling existing student loan debt on her hypothetical first day in office. In a plan released Tuesday, Warren said she would direct the Secretary of Education to “use their authority to begin to compromise and modify federal student loans consistent with my plan to cancel up to $50,000 in debt for 95% of student loan borrowers,” which equals about 42 million people.
Legislators Are Trying to Block Devos’ Rule on Student Loan Forgiveness—Here’s What You Need to Know | Newsweek
The House of Representatives will vote on a resolution that could stop Education Secretary Betsy DeVos’ borrower defense rule from going into effect, and supporters of the measure say it’s time for legislators to choose a side. Senators will now have a chance to go on the record: Are you with the students or the predatory industry that defrauded them with worthless degrees and a lifetime of debt?” Senator Dick Durbin said in a statement introducing the resolution in September.
Elizabeth Warren says her plan to eliminate student loan debt can bypass Congress | CNBC
Democratic presidential contender Sen. Elizabeth Warren said Tuesday that she would begin to forgive student loan debt on the first day of her administration, using legal tools that would allow her to bypass Congress. The announcement, which comes just weeks before voting begins in the first primary and caucus states, adds urgency to legislation she introduced over the summer to cancel the bulk of the nation’s outstanding student loan debt.