{"id":2017032,"date":"2023-08-30T16:13:01","date_gmt":"2023-08-30T20:13:01","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/federal-appeals-court-reinstates-trump-era-ban-on-student-loan-collection-fees\/"},"modified":"2023-08-30T16:15:09","modified_gmt":"2023-08-30T20:15:09","slug":"federal-appeals-court-reinstates-trump-era-ban-on-student-loan-collection-fees","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/federal-appeals-court-reinstates-trump-era-ban-on-student-loan-collection-fees\/","title":{"rendered":"Federal Appeals Court restores Trump-era ban on student loan collection fees."},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"&quot;\"><div class=\"counts mashsbcount\">22<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Ffederal-appeals-court-reinstates-trump-era-ban-on-student-loan-collection-fees%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=2017032&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><div data-post-content=\"true\" class=\"post_content\" id=\"post_content\">\n<h2>Rule Reinstated\u2063 to Protect\u200d Borrowers<\/h2>\n<p>A month before <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/white-house-releases-list-of-president-trumps-accomplishments-and-it-is-historic\/\" title=\"White House Releases List of President Trump\u2019s Accomplishments \u2013  And It Is Historic!\">student loan payments<\/a> are set to resume, a <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/federal-court-is-fast-tracking-sidney-powells-request-for-a-forensic-exam-of-dominion-voting-machines\/\" title=\"Federal Court Is Fast-Tracking Sidney Powell\u2019s Request For A Forensic Exam Of Dominion Voting Machines\">federal appeals court<\/a>\u2062 has\u2063 reinstated a rule that will provide relief to defaulted borrowers.\u200c The rule, finalized by the Trump administration in 2019, <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/federal-appeals-court-reinstates-trump-era-ban-on-student-loan-collection-fees\/\" title=\"Federal Appeals Court restores Trump-era ban on student loan collection fees.\">prohibits student loan guaranty agencies<\/a> from charging \u2062collection fees from borrowers who quickly resume paying.<\/p>\n<p>The rule specifically\u200d applies to debt from the Federal Family \u200cEducation Loan \u200d(FFEL) program, which was discontinued during the 2009\u20132010 academic \u2064year. Guaranty agencies administering \u200cfederally backed student\u2063 loans made \u200dbefore 2010 will\u200d no longer be \u2063able to recover &#8220;collection costs&#8221; from borrowers \u200bwho \u200ddefaulted but\u2064 took steps to \u200brepay or rehabilitate their loans in a timely manner.<\/p>\n<div class=\"shortcode\">\n<div class=\"border-comp-divider mb-4 mr-4 w-full max-w-[500px] border px-5 py-4 text-[16px] leading-[20px] text-[#262626] md:float-left\">\n<div class=\"mb-3 font-sans text-[16px] font-semibold uppercase leading-[19px] text-[#2F2F2F]\">Related Stories<\/div>\n<ul>\n<li>\n<div class=\"grow\">\n<div class=\"mb-1 line-clamp-2\">\n              <a href=\"http:\/\/www.theepochtimes.com\/us\/biden-pushes-new-student-loan-repayment-plan-weeks-after-supreme-court-rejection-5478287\">Biden Pushes New Student Loan Repayment Plan Weeks\u200d After Supreme Court\u200b Rejection<\/a>\n            <\/div>\n<div class=\"text-comp-caption text-[14px] leading-[18px]\">8\/22\/2023<\/div>\n<\/p><\/div>\n<\/li>\n<li>\n<div class=\"grow\">\n<div class=\"mb-1 line-clamp-2\">\n              <a href=\"http:\/\/www.theepochtimes.com\/us\/biden-announces-39-billion-student-loans-will-be-automatically-discharged-soon-5466368\">Biden Announces $39 Billion Student\u200c Loans Will Be \u2018Automatically Discharged\u2019 Soon<\/a>\n            <\/div>\n<div class=\"text-comp-caption text-[14px] leading-[18px]\">8\/15\/2023<\/div>\n<\/p><\/div>\n<\/li>\n<\/ul><\/div>\n<\/p><\/div>\n<p>The FFEL program has been replaced with Direct Loans,\u2063 so the rule\u2064 doesn&#8217;t affect those who\u200d have taken out loans \u200bin\u2063 the \u200cpast decade.\u200d However, Ascendium Education Solutions, one of \u2064the largest guarantors, sued in 2019 to reserve the right to\u200b impose charges on\u2064 defaulted borrowers. They \u200cargued that the rule\u2064 is unlawful because it restricts guaranty agencies from recouping costs based\u2062 on when they are incurred, \u200brather than whether they are\u2064 reasonable.<\/p>\n<h2>Appeals Court Upholds Rule<\/h2>\n<p>In a recent\u2062 decision, the U.S.\u200b Court of Appeals for the District of Columbia \u2064Circuit overturned the 2022 ruling\u200c and \u200cupheld the Trump-era rule. The\u2062 panel of\u200c three judges ruled that the rule is consistent \u2064with\u2064 the\u2063 <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/joe-bidens-reversal-on-sexual-exposure-for-kids-shows-just-how-extreme-the-democratic-party-has-become\/\" title=\"Joe Biden\u2019s Reversal On Sexual Exposure For Kids Shows Just How Extreme The Democratic Party Has Become\">federal education law<\/a>.<\/p>\n<p>Circuit Judge\u200c Florence Pan, an appointee of President Joe\u2064 Biden, wrote in the court&#8217;s opinion, &#8220;The Act permits guarantors to charge borrowers only for &#8216;reasonable collection costs,&#8217; and the Department permissibly implemented\u200b that \u2064directive \u200bby\u2063 ensuring that \u2062borrowers who create little or no collections work for \u200ca guarantor \u2064are not charged\u200c thousands \u2062of\u2064 dollars in fees.&#8221;<\/p>\n<p>Circuit Judge \u2063Reed Walker, an appointee of President Donald Trump, wrote in a <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/supreme-court-deals-blow-to-epas-power-to-regulate-waters\/\" title=\"Supreme Court limits EPA's authority over water regulation.\">separate concurring opinion<\/a> that the Education Department \u200cacted &#8220;reasonably&#8221; within its rule-making authority\u2062 and no legal precedent is needed to justify the\u2062 rule.<\/p>\n<p>This ruling\u2063 comes \u2064as\u2064 the federal government is scheduled to resume collecting student \u200dloan payments. Starting on Sept. 1, interest on federally\u2063 held \u200cstudent loans will begin accruing again after being suspended\u200c since March 2020. However, payments on those loans won&#8217;t \u2064come\u200c due for at least another month. The Education\u2062 Department will\u200c notify borrowers \u200d&#8221;well before payments restart.&#8221;<\/p>\n<h2>Support \u2064for \u2063Borrowers<\/h2>\n<p>In\u2064 June, \u200bPresident\u200c Joe Biden announced a plan\u200c to establish a year-long &#8220;on-ramp&#8221; repayment \u2063program\u2064 for those who may \u2062struggle with payments\u2062 when they resume\u200c this fall.\u200d During this period, the \u2064Education Department will \u200dnot report borrowers to collection agencies or\u2063 credit bureaus for late, missed, \u200bor partial payments, providing some relief \u2064to borrowers.<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>A federal appeals court has reinstated a rule preventing student loan guaranty agencies from charging collection fees to defaulted borrowers who promptly resume payments. The rule, implemented by the Trump administration in 2019, applies to federally backed student loans made prior to the resumption of loan payments in a month&#8217;s time.<\/p>\n","protected":false},"author":392,"featured_media":2017033,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","fifu_image_alt":"","footnotes":""},"categories":[543],"tags":[],"class_list":["post-2017032","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-the-epoch-times"],"fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2017032","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/392"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=2017032"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2017032\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/2017033"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=2017032"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=2017032"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=2017032"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}