Student Loan News, Week in Review

Published on Author Kelsey Radcliffe

This week in student loan news: several bills are introduced that would allow employees to receive more assistance from their employer for student loan repayment, private lenders announce parent-targeted loans and a high school dropout sues the U.S. Department of Education to get his loans discharged.

Bills Would Spur More Companies to Repay Workers’ Student Loans

Six different bills have been introduced in Congress that would allow employer-paid student loan repayment to be exempt from federal tax. Currently, employees can receive up to $5,250 from their employer each year tax-free toward education. HR3861 and a companion bill in the Senate would extend these benefits to the repayment of private or federal loans.

The remaining bills allow for employers to pay even more toward their employees’ student loans. HR1713 would allow up to $6,000 per year tax-free with a lifetime maximum of $50,000, while HR4363 would allow $10,000 each year tax-free. Two other bills, HR4102 and S2099 would allow tax-free employer payments on a “qualified education refinance loan” without any cap. These bills would encourage more companies to offer student loan repayment as a perk to their employees.

Read the full story here.

Student Loans Are Now Being Targeted at Parents to Help Fight Debt

An increasing number of private lenders are now offering student loans targeted to parents. Some of these loans will be a cheaper option for parents than Federal Parent PLUS loans, as parent loans from private lenders don’t have any origination fees. Parents with high credit scores will also receive lower interest rates with private loans.

Read the full story here.

We offer refinancing for parent PLUS loans in addition to student loans. We also offer the unique option to transfer your balance to your child who is ready to take on the responsibility of the loan. See what you can save by using the Find My Rate tool.

High School ‘Dropout’ Wants $56k in Student Loans Discharged

A Florida man is suing the U.S. Department of Education to discharge his student loans on the grounds that he never qualified for them in the first place. 44-year-old Ian Locklear never graduated from high school, but applied to the University of South Florida in 1989 as a junior in high school and was accepted. He then dropped out of high school to attend college in 1990, racking up more than $56k in student loans.

Under the Higher Education Act of 1965, student loans can be discharged if a school falsely certifies a student’s ability to benefit from a program loans are taken out for.  Locklear claims to have not been eligible for the loans without a high school diploma.

Read the full story here.

Share: Share on FacebookShare on Google+Tweet about this on TwitterShare on LinkedIn