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Blog: Can BlackRock Benefit from Inside Information from Fed Facilities?

Cross-posted from AFR’s Medium page. Can BlackRock Benefit from Inside Information from Fed Facilities? The Fed’s Agreement with BlackRock Raises Questions about Inside Information In order to respond to the ongoing pandemic, the Federal Reserve has created several facilities to purchase financial securities in order

photo of a student borrower looking sadly at the sky - Photo by Matese Fields on Unsplash

Statement: Narrowing student debt cancellation in the Heroes Act leaves out millions and surrenders a key tool for economic stimulus

As Congress considers the next steps to rebuild the U.S. economy, student debt cancellation must remain a priority. Speaker Pelosi said that the third pillar of the Heroes Act is “putting much-needed money into the pockets of the American people.” Narrowing the student debt cancellation provisions in the HEROES Act surrenders a crucial tool to address this economic crisis that would do exactly that.

students in graduation cap and gowns - Photo by Caleb Woods on Unsplash

Statement on the Student Loan Cancellation Provisions of the HEROES Act

The HEROES Act provides needed relief to the 45 million student loan borrowers in the U.S., tackling the ongoing economic fallout caused by the coronavirus with an approach that research shows would boost the economy overall. HEROES includes $10,000 in federal student debt cancellation, which would leave as estimated 16 million borrowers completely debt-free. It also extends the CARES Act suspension of student loan payments to September 2021, giving borrowers a chance to recover on the same timeline the economy is projected to need to return to pre-coronavirus productivity.

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Letter to Regulators: The Fed must reject any effort by banks to increase involvement in oil and gas

Americans for Financial Reform Education Fund sent a letter to the Federal Reserve Board, urging them to avoid any actions which would permit the financial holding companies or any of their subsidiaries to directly or indirectly operate oil or gas companies. The letter highlights the manifold physical, economic, reputational and financial system risks of bank commodity holdings, risks have become even more severe with the recent dislocation in global energy markets. As these markets will be disrupted for an extended period, the letter asks the Board to firmly reject any effort by banks to use the situation with respect to defaulting loans in the energy industry to increase bank involvement in the oil and gas industry.

a student raises their hand in a classroom Photo by Felicia Buitenwerf on Unsplash

Sign-on letter: 69 orgs call for canceling student debt to tackle economic fallout

Today, 69 community, civil rights, consumer, and student advocacy organizations sent a letter to House and Senate leadership, urging them to include student debt cancellation in the next coronavirus package.  The letter also calls on leadership to extend the suspension of payments on federal student loans through March 2021, as current estimates indicate that the economy will not recover to pre-virus levels until the third quarter of 2021.

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News Release: Private Student Lenders Finally Do the Bare Minimum, Halt New Lawsuits Against Borrowers During the Pandemic

According to the Washington Post, Navient will suspend any new lawsuits against private student loan borrowers, and National Collegiate has said no new lawsuits will be filed for at least two months. This is the bare minimum of what should happen in the midst of a pandemic, but it is step in the right direction which we welcome and urge all other private student loan servicers to take as well.