$20 Million Settlement Eliminates For-Profit College Student Debt

$20 Million Settlement Eliminates For-Profit College Student Debt

New York City Mayor Eric Adams announced on March 3 that the for-profit Berkeley College had agreed to a settlement canceling $20 million in loan debt for former students, Business Insider reports. While Berkeley does not admit any wrongdoing, the settlement follows a 2018 lawsuit filed by the city’s Department of Consumer and Worker Protection alleging that Berkeley’s deceptive practices included “inducing students to contract loans directly to Berkeley” and “hide student costs until it’s too late for them to withdraw,” according to the Press release announcing the settlement.

The Biden administration has taken a piecemeal approach to student debt forgiveness, targeting loans taken out at for-profit colleges and loans taken out by people classified as lifelong disabled, as well as expanded eligibility for the existing Civil Service Loan Relief Program (PSLF). Last fall, The Hill estimated that Biden had forgiven more than $9 billion in student loans since taking office.

To put those numbers into perspective, at the start of the pandemic, about 45 million people owed more than $1.8 trillion in student loan debt, according to Debt Collective, a “union of debtorswhich organizes itself to abolish unjust debts. All 45 million benefited from the COVID-based pause on student debt payments and interest dating back to March 2020. After extending the program several times, Biden announced that the moratorium would expire on May 1. But sources say CNBC that the Ministry of Education has ordered federal student loan service companies to suspend sending notices about the resumption of payments. For now, it looks like borrowers can get at least one more reprieve before repayment resumes.

HBCU and nonprofit launch Black Wealth Institute

Miami HBCU Florida Memorial University and nonprofit TechNolij announced the creation of the Black Wealth Institutea “platform to deliberately and creatively design how black wealth is created”.

Blavity Reports that the institute intends to connect black entrepreneurs to business opportunities and use its partnership with higher education to educate people about financial planning, home ownership and investing, as well as “more niche” topics such as crypto and NFTs. Former music industry executive Ted Lucas started TechNolij to create a pool of workforce and entrepreneurial talent for women and minorities in technology.

“There are models from the past that prove this type of social engineering works and has created new black millionaires and a stronger black middle class in cities like Atlanta, Detroit and Washington, D.C.,” Lucas said in a statement. joint statement with Institute co-founder Fabiola Fleuranvil, CEO of Blueprint Creative Group. “Our approach is to design similar structures and accomplish the same through the Institute of Black Wealth and with the support of business partners, banking institutions and funders who understand the role they play. in supporting efforts that deliberately address structural inequalities.”

How rising gas prices affect people living in cars

As residents of auto-centric communities across the United States complain about the sudden spike in gas prices, The Guardian’s Spotlights an invisible victim of soaring prices: people who live in their cars and rely on a running engine to stay warm. One February 2021 The USA Today story called this type of homelessness “vehicle residence”.

“Having to idle to warm up when I’m in colder regions definitely has an impact on my gas mileage,” a Michigan woman, speaking on condition of anonymity, told the Guardian. “I don’t have the greatest credit, so buying a home is currently out of reach for me, and with skyrocketing rents and most incomes requiring two to three times the rent, it’s impossible to find anything affordable.”

the National Alliance to End Homelessness estimates the total number of homeless people at around 580,000 in 2020, based on a count at some point before the pandemic. It is more difficult to accurately estimate the number of people living in vehicles, as they are constantly on the move in search of safe places to park as well as sources of electricity and water.

According to AAA, the average cost of gasoline in the United States as of March 10 was $4.32 per gallon, down from $2.82 per gallon a year ago. According to The Guardian, this price spike comes even as the 24 largest oil companies reported $174 billion in profits from January to September 2021.

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