Latest news with #loanrepayment
Yahoo
06-07-2025
- Business
- Yahoo
The Trump administration has begun garnishing wages of student loan borrowers in default. These are the benefits businesses can offer employees to help with their debt
A few years ago, it seemed like the dream of widespread student debt forgiveness was alive and well. And although the hopes of millions of borrowers across the country have since been dashed, there are moves that employers can make to help workers toiling under the burden of defaulted loans and garnished wages. Student loan borrowers were able to take advantage of a repayments pause when the COVID pandemic began in 2020, but that expired in September of 2023. That same year, the Supreme Court struck down then-President Biden's decision to cancel up to $20,000 in debt for qualified borrowers. And in May of 2025, a five-year reprieve for student loan borrowers who were in default on their loans expired. That means that collections are now in play, and the Department of Education can garnish wages, tax refunds, and federal benefits. 'Resuming collections protects taxpayers from shouldering the cost of federal student loans that borrowers willingly undertook to finance their postsecondary education,' the Department of Education (DOE) wrote in a statement late April. 'There will not be any mass loan forgiveness.' This isn't just a problem for an unlucky few. Around 20.5% of student loan borrowers have a payment that's past due by 90 days or more, according to a TransUnion analysis. And around 5.3 million defaulted borrowers will get a notice from the Treasury Department that their wages could potentially be garnished, according to a May statement from the DOE. Workers of all ages have already been struggling for years with student loan repayment. But the latest move from the Trump administration has made the issue even more urgent. There are several different ways that employers can help their workers with student loan repayments, including through retirement benefits, educational assistant programs, and paid time off exchanges. Fortune sat down with benefits experts, who say that while offering these benefits do come with challenges, they can go a long way toward improving employee financial wellbeing. 'Business leaders can't ignore this financial pressure anymore,' says Jeremy Yonan, VP of total rewards at job site Indeed. 'Student loan debt isn't just a personal challenge, it's actually a business imperative because the ripple effect comes up in every corner of the workplace.' Many workers burdened by student loans face a tough financial tradeoff: either reduce their debt or invest in their future. That means they often miss out on contributing to their retirement plans, and their employer's valuable contributions. The Secure 2.0 Act of 2022 aimed to fix that problem. Companies can take the funds they'd use to match employee retirement contributions and instead use them to help them pay off student loans. 'When companies offer a contribution into retirement savings in connection with their student loan payments, they are helping to protect the financial future of those employees who are largely sidelined and sitting out of their primary benefit that they offer, which is the retirement match,' says Laurel Taylor, CEO of Candidly, a financial wellness company. Financially, this process is easy for employers because the money is essentially repurposed so it doesn't cost businesses extra to provide the benefit. But few employers are currently taking advantage of it because of the administrative burden. Only 11% of Candidly customers have launched the student loan retirement match in connection with secure 2.0. Benefit, according to Taylor. Goldman Sachs Ayco, an arm of the bank that specializes in workplace financial planning, says that while 31% of their corporate clients offer student loan assistance, only 10% do so through retirement. As the student loan crisis becomes more dire, however, we might see more businesses offer the benefit to their workforce. 'When employees start to see their wages garnished, it might lead some companies to accelerate adoption on the 401(K) side if participation is high enough,' says Kris Battistoni, VP of compensation and benefits solutions at Goldman Sachs Ayco. Companies that offer employees a certain number of days of paid-time off may want to consider a program that allows workers to exchange their unused time and dedicate those funds towards paying off student loan debt. The benefit is that it costs the employer itself very little, as they have already budgeted that time into their balance sheet. The drawback is that it can come with administrative burdens, because HR managers have to comply with a variety of state laws around what employees can and can't do with their PTO. There are, however, a variety of B2B businesses out there tailored to handle services like these. Businesses should also be aware that critics of these PTO exchanges argue that they incentivize employees to disregard work-life balance, which could lead to additional stress and burnout. The program also won't work for companies with flexible or unlimited PTO. 'The PTO model is interesting, because the biggest criticism that we've seen and heard and had had conversations with employers about is it sort of diminishes quality of life,' Stacey MacPhetres, senior director of education finance for EdAssist by Bright Horizons, which helps employers manage education benefits, tells Fortune. One of the easiest and most impactful ways to provide help to people with student loans is offering them financial counseling services. Student loan borrowers often have more than one loan in play at a time, with different interest rates and timelines. That can make it hard to figure out exactly how much of one's paycheck should be allocated toward paying off the debt, and which loans should be prioritized, says MacPhetres. 'It's incredibly beneficial to offer, not just the monetary contribution, but expert coaching behind the scenes to make sure that those funds are being applied in the most expedient way, based on what the employee wants to accomplish,' she says. Student loan education is just as important as the ability to pay off the debt, experts say, especially if planners can help employees refinance their loans to get a better interest rate. That kind of personalized assistance can not only help with student loans, but also ease worker anxiety around their finances. 'From recent grads and mid-career professionals to parents helping get through college, having that personalized care for different life stages can provide real short term relief,' says Yonan. 'It's not just about the case investment, it's also about education.' Employers have long been able to help workers fund their education through educational assistance programs. Businesses are allowed to contribute $5,250 per employee per year towards tuition, books, or supplies, or courses. But in 2020, the program was expanded to include the ability for companies to put this money towards paying off student loan debt, according to the IRS. Many employers have questions about how they can make sure the money is being used as intended. That's because employees mostly self-certify that they've spent the money on loans, and businesses need to find an efficient way to verify that without invading privacy in the process, says Jonathan Barber, VP head of compensation and benefits solutions, at Goldman Sachs Ayco. 'I think companies thus far are uncomfortable with it because they want to verify that they're actually doing something to pay off the debt and not just giving employees funds.' Under current law, the program is set to expire at the end of 2025, according to the IRS. But experts that Fortune spoke with are confident that the program will be made permanent through legislation later this year. This story was originally featured on
Yahoo
30-06-2025
- Business
- Yahoo
AB Science provides an update on the renegotiation of loan repayment terms with its financial creditors
PRESS RELEASE AB SCIENCE PROVIDES AN UPDATE ON THE RENEGOTIATION OF LOAN REPAYMENT TERMS WITH ITS FINANCIAL CREDITORS AGREEMENT IN PRINCIPLE HAS BEEN REACHED ON A TWO-YEAR DEFERRAL OF REPAYMENT OF STATE-GUARANTEED LOANS SAVINGS OVER THE PERIOD WILL BE INVESTED IN R&D THIS AGREEMENT IS CONDITIONAL ON THE REPAYMENT DATE OF THE EIB COVID LOAN BEING POSTPONED, NEGOTIATIONS ON WHICH ARE CURRENTLY UNDERWAY. Paris, June 30, 2025, 8am CET AB Science SA (Euronext - FR0010557264 - AB) today announced that an agreement in principle has been reached with its financial creditors to postpone by 24 months the repayment of its bank debt (for a total amount of around 3.7 million euros at the opening of the conciliation procedure in January 2025). The implementation of this agreement is conditional on the postponement by at least 12 months of the repayment of a loan taken out with the EIB (for a total principal amount of 12 million euros, initially repayable in January and December 2028). Throughout the negotiation period, a standstill was granted by the creditors. The financial creditors unanimously agreed to the following restructuring terms : State-guaranteed loans (PGE) for a balance of 3.5 million euros Freeze on principal repayments from January 1, 2025 to December 31, 2026 Resumption of amortization on January 1th, 2027 Extension of the repayment period for the balance of 3.5 million euros, quarterly between March 31, 2027 and March 31, 2029 Innovation loan for a balance of 0.2 million euros Freeze on principal repayments from January 1, 2025 to September 30, 2025 Resumption of amortization on October 1st, 2025 Repayment of the balance of 0.2 million euros, quarterly between December 31, 2025 and June 30, 2026. The banks' agreement is conditional on the postponement by at least 12 months of the start of amortization of the EIB loan. The loan with the EIB is granted in two tranches of 6 million euros each, with the first tranche maturing on January 1, 2028 and the second on December 31, 2028. The Company is pursuing discussions with the EIB to obtain this postponement. About AB ScienceFounded in 2001, AB Science is a pharmaceutical company specializing in the research, development and commercialization of protein kinase inhibitors (PKIs), a class of targeted proteins whose action are key in signaling pathways within cells. Our programs target only diseases with high unmet medical needs, often lethal with short term survival or rare or refractory to previous line of treatment. AB Science has developed a proprietary portfolio of molecules and the Company's lead compound, masitinib, has already been registered for veterinary medicine and is developed in human medicine in oncology, neurological diseases, inflammatory diseases and viral diseases. The company is headquartered in Paris, France, and listed on Euronext Paris (ticker: AB). Further information is available on AB Science's website: Forward-looking Statements - AB ScienceThis press release contains forward-looking statements. These statements are not historical facts. These statements include projections and estimates as well as the assumptions on which they are based, statements based on projects, objectives, intentions and expectations regarding financial results, events, operations, future services, product development and their potential or future performance. These forward-looking statements can often be identified by the words "expect", "anticipate", "believe", "intend", "estimate" or "plan" as well as other similar terms. While AB Science believes these forward-looking statements are reasonable, investors are cautioned that these forward-looking statements are subject to numerous risks and uncertainties that are difficult to predict and generally beyond the control of AB Science and which may imply that results and actual events significantly differ from those expressed, induced or anticipated in the forward-looking information and statements. These risks and uncertainties include the uncertainties related to product development of the Company which may not be successful or to the marketing authorizations granted by competent authorities or, more generally, any factors that may affect marketing capacity of the products developed by AB Science, as well as those developed or identified in the public documents published by AB Science. AB Science disclaims any obligation or undertaking to update the forward-looking information and statements, subject to the applicable regulations, in particular articles 223-1 et seq. of the AMF General Regulations. For additional information, please contact: AB ScienceFinancial Communication & Media Relations investors@ Attachment Standstill Banques VEng VFError in retrieving data Sign in to access your portfolio Error in retrieving data
Associated Press
30-06-2025
- Business
- Associated Press
AB Science provides an update on the renegotiation of loan repayment terms with its financial creditors
PRESS RELEASE AB SCIENCE PROVIDES AN UPDATE ON THE RENEGOTIATION OF LOAN REPAYMENT TERMS WITH ITS FINANCIAL CREDITORS AGREEMENT IN PRINCIPLE HAS BEEN REACHED ON A TWO-YEAR DEFERRAL OF REPAYMENT OF STATE-GUARANTEED LOANS SAVINGS OVER THE PERIOD WILL BE INVESTED IN R&D THIS AGREEMENT IS CONDITIONAL ON THE REPAYMENT DATE OF THE EIB COVID LOAN BEING POSTPONED, NEGOTIATIONS ON WHICH ARE CURRENTLY UNDERWAY. Paris, June 30, 2025, 8am CET AB Science SA (Euronext - FR0010557264 - AB) today announced that an agreement in principle has been reached with its financial creditors to postpone by 24 months the repayment of its bank debt (for a total amount of around 3.7 million euros at the opening of the conciliation procedure in January 2025). The implementation of this agreement is conditional on the postponement by at least 12 months of the repayment of a loan taken out with the EIB (for a total principal amount of 12 million euros, initially repayable in January and December 2028). Throughout the negotiation period, a standstill was granted by the creditors. The financial creditors unanimously agreed to the following restructuring terms : State-guaranteed loans (PGE) for a balance of 3.5 million euros Freeze on principal repayments from January 1, 2025 to December 31, 2026 Resumption of amortization on January 1th, 2027 Extension of the repayment period for the balance of 3.5 million euros, quarterly between March 31, 2027 and March 31, 2029 Innovation loan for a balance of 0.2 million euros Freeze on principal repayments from January 1, 2025 to September 30, 2025 Resumption of amortization on October 1st, 2025 Repayment of the balance of 0.2 million euros, quarterly between December 31, 2025 and June 30, 2026. The banks' agreement is conditional on the postponement by at least 12 months of the start of amortization of the EIB loan. The loan with the EIB is granted in two tranches of 6 million euros each, with the first tranche maturing on January 1, 2028 and the second on December 31, 2028. The Company is pursuing discussions with the EIB to obtain this postponement. About AB Science Founded in 2001, AB Science is a pharmaceutical company specializing in the research, development and commercialization of protein kinase inhibitors (PKIs), a class of targeted proteins whose action are key in signaling pathways within cells. Our programs target only diseases with high unmet medical needs, often lethal with short term survival or rare or refractory to previous line of treatment. AB Science has developed a proprietary portfolio of molecules and the Company's lead compound, masitinib, has already been registered for veterinary medicine and is developed in human medicine in oncology, neurological diseases, inflammatory diseases and viral diseases. The company is headquartered in Paris, France, and listed on Euronext Paris (ticker: AB). Further information is available on AB Science's website: . Forward-looking Statements - AB Science This press release contains forward-looking statements. These statements are not historical facts. These statements include projections and estimates as well as the assumptions on which they are based, statements based on projects, objectives, intentions and expectations regarding financial results, events, operations, future services, product development and their potential or future performance. These forward-looking statements can often be identified by the words 'expect', 'anticipate', 'believe', 'intend', 'estimate' or 'plan' as well as other similar terms. While AB Science believes these forward-looking statements are reasonable, investors are cautioned that these forward-looking statements are subject to numerous risks and uncertainties that are difficult to predict and generally beyond the control of AB Science and which may imply that results and actual events significantly differ from those expressed, induced or anticipated in the forward-looking information and statements. These risks and uncertainties include the uncertainties related to product development of the Company which may not be successful or to the marketing authorizations granted by competent authorities or, more generally, any factors that may affect marketing capacity of the products developed by AB Science, as well as those developed or identified in the public documents published by AB Science. AB Science disclaims any obligation or undertaking to update the forward-looking information and statements, subject to the applicable regulations, in particular articles 223-1 et seq. of the AMF General Regulations. For additional information, please contact: AB Science Financial Communication & Media Relations [email protected] Attachment Standstill Banques VEng VF
Yahoo
23-06-2025
- Business
- Yahoo
Exclusive-Trump Organization pays off loan on 40 Wall Street in New York
By Tom Bergin (Reuters) -The Trump Organization said on Monday it had repaid a $160 million loan on the 40 Wall Street office tower in Manhattan, of which analysts estimate about $114 million was outstanding. Trump has cited the building, which he said he bought for $1 million, as one of his most successful real estate investments ever. However, in recent years the building struggled with low occupancy and its income has been unable to cover debt payments. The loan was due for repayment in early July. Sign in to access your portfolio
Zawya
09-05-2025
- Business
- Zawya
Debt settlement: Nigeria repays $3.4bln COVID-19 relief loan to IMF
Nigeria has officially cleared its $3.4 billion loan obligation to the International Monetary Fund (IMF), marking a pivotal achievement in the country's economic recovery journey. The loan, disbursed in April 2020 under the IMF's Rapid Financing Instrument (RFI), was aimed at cushioning the impact of the COVID-19 pandemic and the global oil price crash. According to a statement by the IMF Resident Representative in Nigeria, Dr. Christian Ebeke, the country completed the repayment as of April 30, 2025. The five-year repayment plan included a moratorium period of 3.25 years, with repayments beginning in the third quarter of 2023. Despite settling the principal loan, Nigeria will continue to make annual payments of around $30 million in Special Drawing Rights (SDR) charges. These charges are based on the difference between the country's SDR holdings—currently SDR 3.164 billion (US$4.3 billion)—and its total SDR allocation of SDR 4.027 billion (US$5.5 billion). Payments will continue until the two balances are equal. Former presidential aide Tolu Ogunlesi, via his X (formerly Twitter) handle, applauded the milestone. 'This US$3.4 billion—equivalent to 100% of our SDR quota—has now been fully repaid, in line with the agreement,' he noted. 'President Bola Ahmed Tinubu has kept to the terms. As of May 2025, the loan is fully cleared. Naija no dey carry last, and we no dey default.' Figures from the IMF confirm Nigeria's consistent repayment trajectory: June 30, 2023: $2.45 billion outstanding; Dec 31, 2023: $1.84 billion; June 30, 2024: $1.23 billion; March 31, 2025: $306.8 million; May 07, 2025: $0. Analysts believe that this milestone reinforces Nigeria's creditworthiness and signals a renewed commitment to fiscal discipline amid ongoing economic reforms.
