July 2, 2023 • 25 mins
Friday's show highlighted the Supreme Court's Ruling on Student Loan Debt Forgiveness and updates for the closeout of the 2022/2023 award year.
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Transcript
Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
(00:08):
Hey y'all,
this is Dana from DAS Financially Consulting Services coming in with breaking news.
I uh just received the information regarding the Supreme Court's decision that we've all been waiting for on student loan debt relief.
(00:36):
It was struck down.
Uh So we will go over that uh in today's uh episode and how that will affect students and their families going forward before I begin.
I would just like to say thank you very much for joining me on today's show.
(00:56):
I uh have been working in this field,
the financial student loan financial aid field for almost 17 years now.
And prior to that,
I was a paralegal at a prestigious law firm here in New Hampshire.
(01:17):
Uh And I also had uh quite an extensive banking background before I landed into the field of student loans.
So as everybody knows,
um or should be familiar with um during the 20 22 campaign,
(01:40):
President Biden and the Secretary of Education came up with a plan or a proposal called student loan debt relief and it was going to relieve at least $20,000 of student loan debt.
(02:01):
Uh was the proposal.
Now,
there were a lot of students that I'm sorry to say were deceived by this proposal.
Um The majority of us that work in the industry and have a legal background uh knew that the proposal that the president put forward with the Secretary of Education uh was not legal based on our US constitution.
(02:36):
You cannot have an overreach in,
in executive powers and go past Congress and try to uh eliminate the amount of debt and put a burden on the taxpayer.
You,
you that's not the way our government is set up.
(02:56):
This has nothing to do.
I just want to put it out there while this was a proposal during a political election.
This decision has nothing to do with politics,
nothing to do with politics at all.
So I want everybody to take a step back before they start throwing up their hands and saying that this is all political and it has to do with the,
(03:21):
you know,
the right and the left.
No,
this has nothing to do with that.
As far as the decision goes,
the decision is made was made based on the facts of the case in our US constitution.
And what the president was trying to do was basically through an executive order,
(03:44):
go above and beyond Congress.
And that is not the way again,
our government is set up.
It wasn't,
it wasn't meant to be set up that way.
And so this was a gross overreach of his,
his executive power that he has.
(04:06):
So going forward,
what this means is is that student loans are going to go into repayment.
Now,
there has been a couple of uh months thrown around uh 11 month is August the next month or the other month is um October.
I'm going to make sure I research and confirm but right now,
(04:30):
I I am almost positive that the repayments will begin in October.
And the reason for that is,
is because with this decision,
I I'm gonna be totally honest with y'all as I always am,
the Department of Education thought that this was going to be approved.
(04:52):
So they have not established the repayment centers as of yet.
So now they were gonna be scurrying during the summer months that we have left before the actual uh October date comes around uh to get these uh repayment uh set up and,
(05:18):
and put and implement it.
The other thing I want to point out as well as that there has been a number of students who were in default status and went on to get additional loans through the Fresh Start Initiative.
(05:39):
I want you to understand that those individuals,
those students who were in default status and got additional loans in the Fresh Start under Fresh Start initiative.
At this point in time,
there is a very good possibility this whole fresh start initiative that is also going to end up going to the wayside and the default statuses will have to be updated in order to be able to receive additional loans.
(06:12):
And this is the way it has always been prior to this whole time period that we've had to deal with with COVID-19,
uh overrides uh the pause on payments,
student loan payments that went far too long.
And also with regards to um,
(06:37):
the,
the fresh start initiative,
it always was that if you were a student that had wanted to go back to school and obtain additional loans that you are eligible to receive through the title four programs,
the attending schools that are eligible to receive the department's funds through the Title four program that you would have to make those uh,
(07:04):
defaulted loans into good standing.
And so you would have to call your loan servicer and figure out how that would come to be.
Sometimes you have to make six consecutive months of payments.
Uh Sometimes you just do a flat settlement.
I've seen that where you just do a flat settlement for a portion of the amount that you owe.
(07:28):
They call it good and then you're good to go.
Uh,
so for all of you that are listening today and that may find yourself in that boat.
It's better to contact your loan servicer and take care of the matter than to let it just sit there and fester.
(07:51):
I am,
I'm just gonna put it out there because of the fact that this ruling is not saying that that you're not going to be assisted if you are in that situation.
What that's not what this ruling is saying?
Nor is the ruling saying that those um students who had loans out under the public uh service,
(08:19):
um there was a,
the public service forgiveness.
So those for those nurses,
the uh doctor,
I mean,
the,
yeah,
nurses and I think there were doctors under that and I think there was also um I know for sure that there's police in um EMT si believe all of those covered from that,
but I will do further research just to update myself,
(08:44):
but I it it's called public loan service forgiveness.
And that's for all of those folks that um basically went to school to become police officers or nurses and they uh you know,
were out there um or and are out there on the front lines and they were uh signed up for that forgiveness and this was way before uh COVID and,
(09:11):
and it overrides and also uh the mention of this uh plan of student loan debt forgiveness.
So,
so they were already covered.
Um and I would,
I would highly suggest that they contact their loan servicers just to just to sign up uh if you haven't already signed up.
Um but I wanted to come in today uh just to because we've been waiting for this announcement forever and a day and I kind of knew that this was gonna be one of the last decisions to come out before of the summer session.
(09:46):
But um I,
I as promised I had been promising y'all,
I'd come in with it.
Um The other,
the other thing I wanted to touch on briefly because the last episode I had put out on May 11th was all regards to,
you know,
we were waiting for the budget to pass and the budget finally passed,
there were some modifications in there but it did not uh reduce the um student loan aid for the 2023 2024 award year that begins tomorrow.
(10:18):
Now,
a lot of us have already been processing,
processing files and auditing files for the 2023 2024 award year.
Uh It officially begins tomorrow and today the 2022 2023 award year officially is ending.
(10:40):
Now,
what that means is,
is that um as of today,
this is the last day that anyone can complete the 2022 2023 fast up to be quite honest if you haven't completed it by now,
unless you started in April May or June.
(11:01):
And you know,
for a fact that you are eligible for the 2022 2023 award year and you're in a program,
a career school program such as a 1500 hour clock year.
And you're gonna graduate prior to June 30th of 2024.
(11:24):
Get it done today.
Otherwise,
make sure you do not graduate until the 2024 2025 award year starts and that will be on July 1st of 2024.
Ok.
That way you can get all of the aid that's due.
But today does end being able is the um end date that folks students can complete the 2022 2023 Bass A.
(11:56):
Ok.
Now going forward,
we will be still able to award if the 2022 2023 FASA was completed and an IR has been received by the institution that you are planning on attending.
Make sure that the aid that you're going to be receiving,
(12:18):
everything has to be completed.
All of the verification items if you uh need to complete state identity and statement of educational purpose forms because as of today,
also the whole verification override for 2022 2 23 has ended.
So as of tomorrow and going forward,
(12:42):
if those files that were selected for verification were not verified,
the override for COVID is done again as of today and verifications will need to go forward on those files if they are planning on being utilized and therefore processed through the system,
(13:04):
school owners.
If you're listening,
please take note of that and tell your financial aid advisors that that is happening so that you don't get an audit finding for non completion of verification because you thought the override the COVID override extended beyond,
ok.
(13:25):
Extended beyond the June 30th.
2023 date.
Ok.
So that is the latest and greatest information I have for you all.
Um I did also want to point out that I posted recently um a post regarding uh some audit findings that I have been coming across on files.
(13:51):
Uh and this should be of interest to everybody because the students and the parents are providing the information that I am reviewing to complete their loan application,
file their financial aid file.
And there is a lot of information that let me just say this,
(14:16):
there have been quite a few files coming through that have been manipulated.
Manipulation of files is an offense that if it continues through the audit process could very well cause an institution to lose their title for Aid.
(14:39):
And so I just wanna put it out there that the next uh podcast that I will be uh hosting the next episode is gonna be all about the manipulation findings that I've been finding.
So the file manipulation,
audit findings that I have been discovering I will be going through in my next episode on my podcast um to get a little preview of it.
(15:05):
Uh check out my linkedin page under Dana Anderson and that's Dain A Anderson.
And I also have a uh page on Facebook under DAS Financial Aid Consulting services LLC.
And I also have um a,
(15:25):
a page that business owners,
uh school owners,
financial aid advisor.
If you're interested,
compliance officers,
you can follow on linkedin and that's under financial aid compliance solutions.
So having said all that I uh actually need to run along because I have to run to an appointment.
(15:46):
I wanna thank you all very much for again listening and supporting this podcast.
It's my privilege to be able to provide the information to all of you um that I am seeing on a day to day basis,
try to provide clarification as to why items are requested.
And also to bring everybody the factual information that is coming down from our government and the branch of the United States Department of Education as far as higher education funding goes.
(16:19):
So,
thank you again,
I want to wish everybody a very happy fourth of July holiday.
And again,
thank you very much.
Stay safe and I'll be talking to you soon.
Bye.
Hey y'all,
this is Dana from DAS Financially Consulting Services coming in with breaking news.
I uh just received the information regarding the Supreme Court's decision that we've all been waiting for on student loan debt relief.
(00:36):
It was struck down.
Uh So we will go over that uh in today's uh episode and how that will affect students and their families going forward before I begin.
I would just like to say thank you very much for joining me on today's show.
(00:56):
I uh have been working in this field,
the financial student loan financial aid field for almost 17 years now.
And prior to that,
I was a paralegal at a prestigious law firm here in New Hampshire.
(01:17):
Uh And I also had uh quite an extensive banking background before I landed into the field of student loans.
So as everybody knows,
um or should be familiar with um during the 20 22 campaign,
(01:40):
President Biden and the Secretary of Education came up with a plan or a proposal called student loan debt relief and it was going to relieve at least $20,000 of student loan debt.
(02:01):
Uh was the proposal.
Now,
there were a lot of students that I'm sorry to say were deceived by this proposal.
Um The majority of us that work in the industry and have a legal background uh knew that the proposal that the president put forward with the Secretary of Education uh was not legal based on our US constitution.
(02:36):
You cannot have an overreach in,
in executive powers and go past Congress and try to uh eliminate the amount of debt and put a burden on the taxpayer.
You,
you that's not the way our government is set up.
(02:56):
This has nothing to do.
I just want to put it out there while this was a proposal during a political election.
This decision has nothing to do with politics,
nothing to do with politics at all.
So I want everybody to take a step back before they start throwing up their hands and saying that this is all political and it has to do with the,
(03:21):
you know,
the right and the left.
No,
this has nothing to do with that.
As far as the decision goes,
the decision is made was made based on the facts of the case in our US constitution.
And what the president was trying to do was basically through an executive order,
(03:44):
go above and beyond Congress.
And that is not the way again,
our government is set up.
It wasn't,
it wasn't meant to be set up that way.
And so this was a gross overreach of his,
his executive power that he has.
(04:06):
So going forward,
what this means is is that student loans are going to go into repayment.
Now,
there has been a couple of uh months thrown around uh 11 month is August the next month or the other month is um October.
I'm going to make sure I research and confirm but right now,
(04:30):
I I am almost positive that the repayments will begin in October.
And the reason for that is,
is because with this decision,
I I'm gonna be totally honest with y'all as I always am,
the Department of Education thought that this was going to be approved.
(04:52):
So they have not established the repayment centers as of yet.
So now they were gonna be scurrying during the summer months that we have left before the actual uh October date comes around uh to get these uh repayment uh set up and,
(05:18):
and put and implement it.
The other thing I want to point out as well as that there has been a number of students who were in default status and went on to get additional loans through the Fresh Start Initiative.
(05:39):
I want you to understand that those individuals,
those students who were in default status and got additional loans in the Fresh Start under Fresh Start initiative.
At this point in time,
there is a very good possibility this whole fresh start initiative that is also going to end up going to the wayside and the default statuses will have to be updated in order to be able to receive additional loans.
(06:12):
And this is the way it has always been prior to this whole time period that we've had to deal with with COVID-19,
uh overrides uh the pause on payments,
student loan payments that went far too long.
And also with regards to um,
(06:37):
the,
the fresh start initiative,
it always was that if you were a student that had wanted to go back to school and obtain additional loans that you are eligible to receive through the title four programs,
the attending schools that are eligible to receive the department's funds through the Title four program that you would have to make those uh,
(07:04):
defaulted loans into good standing.
And so you would have to call your loan servicer and figure out how that would come to be.
Sometimes you have to make six consecutive months of payments.
Uh Sometimes you just do a flat settlement.
I've seen that where you just do a flat settlement for a portion of the amount that you owe.
(07:28):
They call it good and then you're good to go.
Uh,
so for all of you that are listening today and that may find yourself in that boat.
It's better to contact your loan servicer and take care of the matter than to let it just sit there and fester.
(07:51):
I am,
I'm just gonna put it out there because of the fact that this ruling is not saying that that you're not going to be assisted if you are in that situation.
What that's not what this ruling is saying?
Nor is the ruling saying that those um students who had loans out under the public uh service,
(08:19):
um there was a,
the public service forgiveness.
So those for those nurses,
the uh doctor,
I mean,
the,
yeah,
nurses and I think there were doctors under that and I think there was also um I know for sure that there's police in um EMT si believe all of those covered from that,
but I will do further research just to update myself,
(08:44):
but I it it's called public loan service forgiveness.
And that's for all of those folks that um basically went to school to become police officers or nurses and they uh you know,
were out there um or and are out there on the front lines and they were uh signed up for that forgiveness and this was way before uh COVID and,
(09:11):
and it overrides and also uh the mention of this uh plan of student loan debt forgiveness.
So,
so they were already covered.
Um and I would,
I would highly suggest that they contact their loan servicers just to just to sign up uh if you haven't already signed up.
Um but I wanted to come in today uh just to because we've been waiting for this announcement forever and a day and I kind of knew that this was gonna be one of the last decisions to come out before of the summer session.
(09:46):
But um I,
I as promised I had been promising y'all,
I'd come in with it.
Um The other,
the other thing I wanted to touch on briefly because the last episode I had put out on May 11th was all regards to,
you know,
we were waiting for the budget to pass and the budget finally passed,
there were some modifications in there but it did not uh reduce the um student loan aid for the 2023 2024 award year that begins tomorrow.
(10:18):
Now,
a lot of us have already been processing,
processing files and auditing files for the 2023 2024 award year.
Uh It officially begins tomorrow and today the 2022 2023 award year officially is ending.
(10:40):
Now,
what that means is,
is that um as of today,
this is the last day that anyone can complete the 2022 2023 fast up to be quite honest if you haven't completed it by now,
unless you started in April May or June.
(11:01):
And you know,
for a fact that you are eligible for the 2022 2023 award year and you're in a program,
a career school program such as a 1500 hour clock year.
And you're gonna graduate prior to June 30th of 2024.
(11:24):
Get it done today.
Otherwise,
make sure you do not graduate until the 2024 2025 award year starts and that will be on July 1st of 2024.
Ok.
That way you can get all of the aid that's due.
But today does end being able is the um end date that folks students can complete the 2022 2023 Bass A.
(11:56):
Ok.
Now going forward,
we will be still able to award if the 2022 2023 FASA was completed and an IR has been received by the institution that you are planning on attending.
Make sure that the aid that you're going to be receiving,
(12:18):
everything has to be completed.
All of the verification items if you uh need to complete state identity and statement of educational purpose forms because as of today,
also the whole verification override for 2022 2 23 has ended.
So as of tomorrow and going forward,
(12:42):
if those files that were selected for verification were not verified,
the override for COVID is done again as of today and verifications will need to go forward on those files if they are planning on being utilized and therefore processed through the system,
(13:04):
school owners.
If you're listening,
please take note of that and tell your financial aid advisors that that is happening so that you don't get an audit finding for non completion of verification because you thought the override the COVID override extended beyond,
ok.
(13:25):
Extended beyond the June 30th.
2023 date.
Ok.
So that is the latest and greatest information I have for you all.
Um I did also want to point out that I posted recently um a post regarding uh some audit findings that I have been coming across on files.
(13:51):
Uh and this should be of interest to everybody because the students and the parents are providing the information that I am reviewing to complete their loan application,
file their financial aid file.
And there is a lot of information that let me just say this,
(14:16):
there have been quite a few files coming through that have been manipulated.
Manipulation of files is an offense that if it continues through the audit process could very well cause an institution to lose their title for Aid.
(14:39):
And so I just wanna put it out there that the next uh podcast that I will be uh hosting the next episode is gonna be all about the manipulation findings that I've been finding.
So the file manipulation,
audit findings that I have been discovering I will be going through in my next episode on my podcast um to get a little preview of it.
(15:05):
Uh check out my linkedin page under Dana Anderson and that's Dain A Anderson.
And I also have a uh page on Facebook under DAS Financial Aid Consulting services LLC.
And I also have um a,
(15:25):
a page that business owners,
uh school owners,
financial aid advisor.
If you're interested,
compliance officers,
you can follow on linkedin and that's under financial aid compliance solutions.
So having said all that I uh actually need to run along because I have to run to an appointment.
(15:46):
I wanna thank you all very much for again listening and supporting this podcast.
It's my privilege to be able to provide the information to all of you um that I am seeing on a day to day basis,
try to provide clarification as to why items are requested.
And also to bring everybody the factual information that is coming down from our government and the branch of the United States Department of Education as far as higher education funding goes.
(16:19):
So,
thank you again,
I want to wish everybody a very happy fourth of July holiday.
And again,
thank you very much.
Stay safe and I'll be talking to you soon.
Bye.
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