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close video Federal student loan repayments will restart, Education Secretary Miguel Cardona reveals

The Education Department is “preparing to restart” federal student loan debt repayments after a three-year pause now that the COVID-19 pandemic emergency has ended, Secretary Miguel Cardona told lawmakers on Thursday.

The Education Department is "preparing to restart" federal student loan debt repayments after a three-year pause now that the COVID-19 pandemic emergency has ended, Secretary Miguel Cardona told lawmakers this week.

Cardona revealed the administration's intentions at a Senate Appropriations Committee hearing on Thursday, when Sen. Katie Britt, R-Ala., asked him why the government should forgive student loan borrowers when President Biden is demanding that Congress pay its debt obligations in arguments with Republicans over the debt limit.  

Britt, a first-term senator, cited remarks about the federal debt made Monday by White House press secretary Karine Jean-Pierre and asked if Cardona agreed. 

"If you buy a car, you are expected to pay the monthly payments. If you buy a home, you are expected to pay the mortgage every month. That is the expectation," Jean-Pierre said. 

BIDEN ASKS STUDENT LOAN COMPANIES TO PREPARE FOR END TO PAYMENT PAUSE

Education Secretary Miguel Cardona testifies during the House Appropriations Subcommittee on Labor, Health and Human Services, Education, and Related Agencies hearing on the “FY2024 Request for the United States Department of Education,” in Rayburn B (Williams/CQ-Roll Call, Inc via Getty Images / Getty Images)

Cardona said he agreed with the White House. Britt then said, "that same logic must apply to student loans.

"We agree, and we're preparing to restart repayment because the emergency period is over, and we're preparing our borrowers to restart," Cardona responded.

He added that the HEROES Act, which the Biden administration has controversially argued empowers the secretary of education to reduce or eliminate federal student loan debt obligations, "provides me the opportunity to create a waiver for those who are impacted significantly by the pandemic — very similar to small businesses the year before, where Congress provided a little bit of support."

Cardona did not provide Congess with a specific timeline for the administration's plan when asked.

STUDENT LOAN REFINANCE INTEREST RATES EDGE DOWN FOR 5-YEAR LOANS ONLY

President Joe Biden speaks about student loan debt forgiveness in the Roosevelt Room of the White House on Aug. 24 in Washington. (AP/Evan Vucci / AP Images)

Politico reported earlier this month that the Department of Education issued guidance to student loan companies last November about collecting federal student loan payments once payments resume sometime in October this year. 

Student loan servicers are reportedly required to alert borrowers of payment resumption after Aug. 31. 

Federal student loan payments were paused and interest rates reduced to 0% in March 2020, when President Donald Trump signed the CARES Act in response to the COVID-19 pandemic. The student loan pause has since been extended multiple times by the Biden administration.

Biden, who is running for re-election, has proposed forgiving up to $10,000 in federal student loan debt and up to $20,000 for those who received Pell Grants — a plan that is currently being challenged in court. If Biden is permitted to carry out his plan, he could eliminate a total of $441 billion in student debt from more than 40 million borrowers, according to the Federal Reserve Bank of New York.

SUPREME COURT ALLOWS $6 BILLION IN PAYMENTS TO CONTINUE IN STUDENT LOAN RELIEF CASE

Members of the public walk by as student loan debt holders take part in a demonstration outside the White House staff entrance to demand that President Biden cancel student loan debt July 27, 2022, at the Executive Offices in Washington, D.C. (Jemal Countess/Getty Images for We, The 45 Million / Getty Images)

Students study in the Rice University Library on Aug. 29, 2022, in Houston. (Brandon Bell/Getty Images / Getty Images)

Federal student loan debt stands at $1.635 trillion and is carried by more than 43.8 million borrowers, according to EducationData.org. Should the Supreme Court give Biden the green light for relief, those eligible would need to have individual incomes of less than $125,000 or $250,000 if they’re married couples.

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The White House announced last November that federal student loan payments would resume 60 days after the Education Department is allowed to initiate its student loan forgiveness plan or after Supreme Court litigation is resolved – whichever comes first.

FOX Business' Javier Simon contributed to this report.

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Leafs’ Matthews in Germany for injury treatment

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Leafs' Matthews in Germany for injury treatment

TORONTO — Auston Matthews boarded a plane and crossed an ocean.

The Toronto Maple Leafs are hoping the trip provides some answers — and returns their best to the ice.

General manager Brad Treliving said following Tuesday’s practice his captain, out day-to-day since Nov. 5 because of an undisclosed upper-body injury, is in Germany to see a doctor the star center has worked with in the past.

“More as a general checkup,” Treliving said during an unscheduled availability with reporters. “But also to get some work done on this thing.”

Matthews has sat out six games and will be out a seventh Wednesday when Toronto hosts the Vegas Golden Knights.

Treliving, who added a team doctor accompanied the star forward to Europe, said with the Leafs playing only twice this week the organization decided to use the time to its advantage.

Treliving declined to provide further details on what’s ailing Matthews, who’s believed to have skated only twice since last playing Nov. 3.

“There’s been no setbacks,” Treliving said of the 2022 Hart Trophy winner. “Everything’s been, actually, going quite well. We’re just trying to use the days that we’ve got here with less games being played to just try to get this behind us.”

Toronto (11-6-2) was already down three forwards with Matthews, Max Pacioretty and Calle Jarnkrok sidelined before announcing earlier Tuesday center David Kampf (lower-body injury) is also now on the shelf. Fraser Minten was recalled from the minors to take his spot.

Reaves reaction

Leafs enforcer Ryan Reaves was suspended five games for Saturday’s illegal check to the head on Oilers defenseman Darnell Nurse.

“Never want to see anybody injured,” Treliving said. “It’s a hockey play that goes wrong.”

Reaves was in Toronto’s locker room Tuesday following practice and appeared willing to speak with reporters, but the team’s communications staff intervened and made it clear the 37-year-old forward wasn’t available to comment.

“We thought it was a little high,” Leafs center John Tavares said of a ban from the NHL’s Department of Player Safety that rules Reaves out until Dec. 4. “But we’ll stick behind him … we know how effective he’s been.”

Domi struggling

Leafs forward Max Domi has just six assists — and is on a career-worst 13-game point drought — despite playing an offensive role.

The 29-year-old, who was on the ice Tuesday, missed two recent practices for maintenance.

“He’s fighting through a lot right now … he’s banged up,” coach Craig Berube said. “I’m not overly concerned. We gotta keep working through it.”

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NHL ref Dunning back home after on-ice collision

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NHL ref Dunning back home after on-ice collision

PHILADELPHIA — The NHL referee who was stretchered out of a game following a violent collision with Colorado defenseman Josh Manson was back home Tuesday and expected to make a full recovery.

The league said that Mitch Dunning was home following a trip to the hospital for precautionary reasons after he was accidentally knocked down by Manson in the Avalanche-Flyers game.

Manson skated alone on the ice Monday night when he slammed into Dunning near the blue line early in the first period. Dunning went down in a heap and lay prone on the ice for several minutes. Dunning appeared to be moving his feet and moved his right hand when Manson went to talk to him.

The game at the Wells Fargo Center was delayed for several minutes while trainers and medical staff tended to Dunning.

The game continued with one referee and two linespersons. Colorado beat Philadelphia 3-2.

Dunning is a former professional hockey defenseman who played parts of three seasons in the OHL. He later shifted into officiating and was promoted to full-time NHL status in 2022.

The NHL did not say when Dunning would return to work.

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2 years after record season, B’s fire Montgomery

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2 years after record season, B's fire Montgomery

The Boston Bruins have fired coach Jim Montgomery after stumbling to a losing record in their first 20 games, the team announced Tuesday.

Associate coach Joe Sacco was elevated to interim head coach. The Bruins are off to an 8-9-3 start (.475 points percentage) and outside of a playoff seed in the Eastern Conference.

General manager Don Sweeney called the move “a difficult decision.”

“Jim Montgomery is a very good NHL coach and an even better person. He has made a positive impact throughout the Bruins organization, and I am both grateful and appreciative of the opportunity to work with him and learn from him,” Sweeney said in a statement.

Sacco was previously coach of the Colorado Avalanche from 2009 to 2013 and has been a part of the Boston coaching staff since 2014. The 55-year-old had a 13-year NHL playing career with five teams from 1990 to 2003.

“Our team’s inconsistency and performance in the first 20 games of the 2024-25 season has been concerning and below how the Bruins want to reward our fans. I believe Joe Sacco has the coaching experience to bring the players and the team back to focusing on the consistent effort the NHL requires to have success,” Sweeney said. “We will continue to work to make the necessary adjustments to meet the standard and performance our supportive fans expect.”

Montgomery, 55, had a 120-41-23 record (.715 points percentage) in three seasons with the Bruins, making the playoffs twice. Both trips to the postseason ended at the hands of the Florida Panthers. Boston was stunned in a seven-game, first-round upset in 2023 after having the most successful regular season in NHL history (135 points), and again earlier this year when it lost to Florida in the second round after eliminating the Maple Leafs in seven games.

Montgomery won the Jack Adams Award as NHL coach of the year in 2022-23. He previously coached the Dallas Stars for two seasons (2018-20), amassing a record of 60-43-10.

As Montgomery chronicled in his 2023 NHL Awards speech, his success in Boston came after he turned his personal life around. “Three and a half years ago, the Dallas Stars terminated my contract because of my struggles with alcohol,” he said. “And I had to change my actions and behaviors.”

Despite Sweeney saying the sides were discussing an extension during training camp, Montgomery didn’t have a contract beyond the 2024-25 season.

The Bruins have been one of the NHL’s most notable disappointments this season. They’re 31st in team offense (2.40 goals per game) and 28th in defense (3.45 goals against per game).

Previously dependable aspects of the team have malfunctioned, in particular the goaltending. The team traded former Vezina winner Linus Ullmark to the Ottawa Senators for goalie Joonas Korpisalo. The Ullmark deal broke up the best goalie tandem in the NHL with 26-year-old Jeremy Swayman, who missed training camp during a bitter negotiation before signing an eight-year contract that will pay him $66 million.

Swayman has a 5-7-2 record with an .884 save percentage and a 3.47 goals-against average. After the Bruins lost to the Columbus Blue Jackets 5-1 on Monday, Montgomery said missing training camp wasn’t advantageous.

“I don’t think missing training camp helps anyone,” Montgomery said. “That’s why you have training camps.”

Montgomery has been seen having animated discussions with captain Brad Marchand on the Boston bench multiple times this season. He also benched leading goal scorer David Pastrnak in a game earlier this month.

Montgomery’s firing is the first coaching change of the 2024-25 season. Sacco is the fourth head coach under Sweeney since the GM took over in 2015.

“I’m supportive of Don’s decision to address our current play and performance,” team president Cam Neely said in a statement. “Joe Sacco has a wealth of experience and knowledge of our roster and can help lead our team in the right direction. He has a strong understanding of our standards and expectations, and I trust he will do all he can to accomplish our organization’s goals this season.”

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