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.
The US will take over Gaza and “own it”, Donald Trump has said.
Speaking alongside Israeli Prime Minister Benjamin Netanyahu at the White House, he said the two million Palestinian people living in the territory, which he described as a “demolition site”, would go to “various domains”.
Asked about deploying US troops to fill a potential security vacuum, the president replied: “We’ll do what is necessary.”
Expanding on plans for the territory, he said the US would “develop it, create thousands and thousands of jobs” and turn it into “something the entire Middle East can be very proud of”.
The president reiterated his suggestion from 25 January that Palestinians could be relocated to Egypt and Jordan – something both countries, other Arab nations including Saudi Arabia, and Palestinian leaders, have rejected.
Palestinians in Gaza could go to countries beyond Jordan and Egypt too, he said.
Asked whether he thought Egypt and Jordan would accept Palestinians, he said he believed they would.
But, he added: “I hope we could do something where they wouldn’t want to go back. Who would want to go back?
“They’ve experienced nothing but death and destruction.”
Saudi Arabia immediately responded, stressing its rejection of attempts to displace Palestinians from Gaza, and insisted it would not establish relations with Israel without a Palestinian state.
Asked on what authority the US could take control of Gaza, Mr Trump told reporters he sees a “long term ownership position” which would, he claimed, bring stability to that part of the Middle East.
“This was not a decision made lightly,” he said.
“Everybody I’ve spoken to loves the idea of the United States owning that piece of land, developing and creating thousands of jobs.”
It would be the “Riviera of the Middle East”.
He continued: “I’ve studied it. I’ve studied this very closely over a lot of months, and I’ve seen it from every different angle.”
He does not believe Palestinians should return to Gaza because it is a “guarantee that they’re going to end up dying”.
He talked about finding a “beautiful area to resettle people, permanently, in nice homes where they can be happy and not be shot and not be killed and not be knifed to death like what’s happening in Gaza”.
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The war, triggered by Hamas carrying out a massacre of 1,200 people and taking 250 others hostage during the 7 October 2023 attacks in Israel, has temporarily stopped since the long-sought ceasefire deal came into effect on 19 January.
More than 47,000 Palestinians have been killed in Gaza since Hamas’s attack, according to local authorities.
Mr Netanyahu, the first world leader to meet Mr Trump since the pro-Israel president’s return to the White House, sat beside the Republican as he answered questions from the press.
Trump relocation call will horrify Palestinians
If President Trump is to be taken at face value then he is set to repeat history.
It would end the prospect of a two-state solution – Israelis and Palestinians living side by side on the same land.
It could also wreck any prospects of diplomatic normalisation between Israel and Gulf Arab states.
Nations like Saudi Arabia wouldn’t stand for such a permanent resettlement and probably wouldn’t trust any resettlement presented as ‘temporary’ – which this is conspicuously not.
The two countries being told to take the people of Gaza – Egypt and Jordan – have firmly refused to do so. The American president seems convinced they will roll over.
Maybe though this is part of Trump’s art of the deal: to suggest something, then not follow through – and present that as a concession down the line.
There’s something else too.
Even if Israeli PM Netanyahu believes it’s a plan that can’t work and could further the cries of ethnic cleansing (it’s notable that he didn’t add his overt support to it alongside Trump) the president’s plan will certainly help him domestically where his future is fragile.
Netanyahu can dangle ‘permanent relocation’ in front of the real hardliners in his government who keep him in power.
Whatever is at play here, the announcement today will horrify Palestinians and it will delight and embolden the hardline elements of Israeli society who have dreamt of a Jewish state free of Palestinians.
‘Plans change with time’
The US president hinted he would seek an independent Palestinian state as part of a broader two-state solution to the decades-long Israel-Palestine conflict.
“Well, a lot of plans change with time,” he told reporters when he was asked if he was still committed to a plan similar to the one he spelled out in 2020 that described a possible Palestinian state.
That plan proposed a series of Palestinian enclaves surrounded by an enlarged Israel, did not have the Palestinian capital in East Jerusalem, but suggested a Palestinian capital on the outskirts of the city.
“A lot of death has occurred since I left and now came back. Now we are faced with a situation that’s different – in some ways better and in some ways worse. But we are faced with a very complex and difficult situation that we’ll solve,” he said.
On the likelihood of getting a permanent ceasefire in Gaza, Mr Trump said: “We are dealing with a lot of people, and we have steps to go yet, as you know, and maybe those steps go forward, and maybe they don’t.
“We’re dealing with a very complex group of people, situation and people, but we have the right man. We have the right leader of Israel. He’s done a great job.”
Mr Trump was also asked whether he should get the Nobel Peace Prize.
He said: “They will never give me a Nobel Peace Prize. It’s too bad. I deserve it, but they will never give it to me.”
A United States Postal Service worker pushes a cart of packages in New York City, on Dec. 4, 2023.
Brendan Mcdermid | Reuters
The U.S. Postal Service said Tuesday it’s temporarily suspending all inbound packages from China and Hong Kong Posts.
The change is effective immediately and will remain “until further notice,” according to an alert posted to the agency’s website. Letters and large envelopes, referred to as “flats,” sent from China and Hong Kong won’t be impacted, the USPS said.
The announcement comes after President Donald Trump on Saturday signed executive orders imposing tariffs on China, Mexico and Canada. Trump on Monday agreed to hold off on imposing 25% tariffs on Canada and Mexico for 30 days, but the 10% tax on goods from China remains.
A provision in the orders eliminates a popular trade loophole, known as “de minimis,” which allows exporters to ship packages worth less than $800 into the U.S. duty free.
Chinese e-commerce firms, including Shein and PDD Holdings‘ Temu, have relied on the de minimis loophole as a way to bypass tariffs, and keep prices low.