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New Delhi: The <keyword id="19895345" type="General" weightage="20" keywordseo="supreme-court" source="keywords">Supreme Court</keyword> on Wednesday said it will hear on September 17 the appeal of US-based creditor Glas Trust Company LLC against a judgment of the <keyword id="19916400" type="General" weightage="20" keywordseo="nclat" source="keywords">NCLAT</keyword>, which had stayed insolvency proceedings against ed-tech firm BYJU's and approved its Rs 158.9 crore dues settlement with the <keyword id="19901245" type="General" weightage="20" keywordseo="bcci" source="keywords">BCCI</keyword>. A bench comprising Chief Justice D Y Chandrachud and Justices J B Pardiwala and Manoj Misra was urged by a battery of lawyers that the plea be heard urgently keeping in mind the subsequent developments in the case. The plea was mentioned by senior advocate NK Kaul, appearing for the ed-tech major, that the case needed to be heard at the earliest. The submission was supported by Solicitor General Tushar Mehta, appearing for the BCCI, and senior lawyer Abhishek Singhvi, also appearing for the ed-tech firm. Kaul said another plea in the case has also been filed and that is listed for hearing on September 17 and hence, the present plea be either heard on that day or the hearings in both the cases be advanced to this Friday. "We will hear both the pleas on September 17," the CJI said. Senior advocate Shayam Divan, appearing for the US-based creditor, said let the matters be heard together on September 17. Earlier on August 22, the bench had refused to pass an interim order to ensure that the committee of creditors (CoC) does not hold any meeting in pursuance of the insolvency proceedings against the embattled ed-tech firm. It had listed the plea for a final hearing on August 27. The bench had said the developments, which may take place in the meantime, can be negated if it finds there was no merit in the appeal of the US-based creditor against the judgment of appellate insolvency tribunal NCLAT. The plea was mentioned earlier also on August 20 by Byju's and the BCCI and the top court had then also refused to pass an interim order to restrain the Insolvency Resolution Professional (IRP) from constituting a committee of creditors (CoC) in the insolvency proceedings against the ed-tech firm. In a major setback to Byju's, the top court had on August 14 stayed the verdict of NCLAT, setting aside the insolvency proceedings against the ed-tech major and approving its Rs 158.9 crore dues settlement with the Indian cricket board. The August 2 verdict of the NCLAT had come as a huge relief for Byju's as it had effectively put its founder Byju Raveendran back in control. The top court, however, had prima facie termed the NCLAT verdict as "unconscionable" and stayed its operation while issuing notices to Byju's and others on the appeal of the ed-tech firm's US-based creditor against the judgment of the insolvency appellate tribunal. The case stemmed from Byju's default on a Rs 158.9 crore payment related to a sponsorship deal with the BCCI. The top court had directed the BCCI to keep a sum of Rs 158 crore it had received from Byju's after a settlement in a separate escrow account till further orders. "Issue notice. Pending further orders there shall be a stay of the impugned order of August 2 of NCLAT. In the meantime, BCCI shall maintain the amount of Rs 158 crore, which shall be realised in pursuance of a settlement, in a separate escrow account until further orders," the bench had said. The NCLAT had approved the Rs 158.9 crore dues settlement with the BCCI and set aside the insolvency proceedings against Byju's. Byju's had entered into a "Team Sponsor Agreement" with the BCCI in 2019. Under the agreement, the ed-tech firm got exclusive rights to display its brand on the Indian cricket team's kit and some other benefits. Byju's had to pay a sponsorship fee. The company met its obligations till the middle of 2022 but defaulted on subsequent payments of Rs 158.9 crore. After insolvency proceedings were initiated, Byju's entered into a settlement with the BCCI. On July 16, the Bengaluru bench of the <keyword id="19902197" type="General" weightage="20" keywordseo="national-company-law-tribunal" source="keywords">National Company Law Tribunal</keyword> (NCLT) had admitted 'Think and Learn', Byju's parent company, to the insolvency resolution process on a plea filed by the BCCI over default in payment of outstanding dues of almost Rs 158.9 crore. While suspending the board of the ed-tech firm, the NCLT had appointed an interim resolution professional to run the operations of the company, suspended the company's board of directors, and brought it under moratorium by freezing its assets. The US-based lenders suspected that the settlement amount was being diverted from the credit they had extended to Byju's.

SC to hear plea related to insolvency proceedings against ed-tech firm Byju's on Sept 17

The <keyword id="19895345" type="General" weightage="20" keywordseo="Supreme-Court" source="keywords">Supreme Court</keyword> on Friday agreed to list for an early hearing the appeal of US-based creditor Glas Trust Company LLC against a judgment of the <keyword id="19916400" type="General" weightage="20" keywordseo="NCLAT" source="keywords">NCLAT</keyword>, which had stayed <keyword id="19965539" type="General" weightage="20" keywordseo="insolvency-proceedings" source="keywords">insolvency proceedings</keyword> against ed-tech firm <keyword id="19958178" type="General" weightage="20" keywordseo="Byjus" source="keywords">BYJU's</keyword> and approving its Rs 158.9 crore dues settlement with the <keyword id="19901245" type="General" weightage="20" keywordseo="BCCI" source="keywords" meta.keywordsubtype="org" meta.entityname="BCCI" meta.hostid="153" meta.entityid="BCCI">BCCI</keyword>. A bench comprising Chief Justice D Y Chandrachud and Justices J B Pardiwala and Manoj Misra was urged by senior advocate NK Kaul, appearing for the ed-tech major, that the case needed to be heard at the earliest. Kaul said, "The only funding was done by the promoters and today no one has brought any external borrowing. We have to show today how malafide the petition (of US firm) is." "I will get it listed as early as possible," the CJI, who was indisposed and in quarantine for the last few days, said. Senior advocate Kapil Sibal, appearing for the US-based creditor, said it also wanted an early hearing. Earlier on August 22, the bench had refused to pass an interim order to ensure that the committee of creditors (CoC) does not hold any meeting in pursuance of the insolvency proceedings against the embattled ed-tech firm. It had listed the plea for a final hearing on August 27. The bench had said the developments, which may take place in the meantime, can be negated if it finds there was no merit in the appeal of the US-based creditor against the judgment of appellate insolvency tribunal NCLAT. The plea was mentioned earlier also on August 20 by Byju's and the BCCI and the top court had then also refused to pass an interim order to restrain the Insolvency Resolution Professional (IRP) from constituting a committee of creditors (CoC) in the insolvency proceedings against the ed-tech firm. In a major setback to Byju's, the top court had on August 14 stayed the verdict of NCLAT, setting aside the insolvency proceedings against the ed-tech major and approving its Rs 158.9 crore dues settlement with the Indian cricket board. The August 2 verdict of the NCLAT had come as a huge relief for Byju's as it had effectively put its founder Byju Raveendran back in control. The top court, however, had prima facie termed the NCLAT verdict as "unconscionable" and stayed its operation while issuing notices to Byju's and others on the appeal of the ed-tech firm's US-based creditor against the judgment of the insolvency appellate tribunal. The case stemmed from Byju's default on a Rs 158.9 crore payment related to a sponsorship deal with the BCCI. The top court had directed the BCCI to keep a sum of Rs 158 crore it had received from Byju's after a settlement in a separate escrow account till further orders. "Issue notice. Pending further orders there shall be a stay of the impugned order of August 2 of NCLAT. In the meantime, BCCI shall maintain the amount of Rs 158 crore, which shall be realised in pursuance of a settlement, in a separate escrow account until further orders," the bench had said. The NCLAT had approved the Rs 158.9 crore dues settlement with the BCCI and set aside the insolvency proceedings against Byju's. Byju's had entered into a "Team Sponsor Agreement" with the BCCI in 2019. Under the agreement, the ed-tech firm got exclusive rights to display its brand on the Indian cricket team's kit and some other benefits. Byju's had to pay a sponsorship fee. The company met its obligations till the middle of 2022 but defaulted on subsequent payments of Rs 158.9 crore. After insolvency proceedings were initiated, Byju's entered into a settlement with the BCCI. On July 16, the Bengaluru bench of the National Company Law Tribunal (NCLT) had admitted 'Think and Learn', Byju's parent company, to the insolvency resolution process on a plea filed by the BCCI over default in payment of outstanding dues of almost Rs 158.9 crore. While suspending the board of the ed-tech firm, the NCLT had appointed an interim resolution professional to run the operations of the company, suspended the company's board of directors, and brought it under moratorium by freezing its assets. The US-based lenders suspected that the settlement amount was being diverted from the credit they had extended to Byju's. SEE ALSO: <a href="https://www.businessinsider.in/tech/mobile/news/india-beats-the-us-to-emerge-as-the-second-biggest-market-for-5g-smartphones/articleshow/113095322.cms">India beats the US to emerge as the second-biggest market for 5G smartphones</a> <a href="https://www.businessinsider.in/tech/mobile/news/apple-iphone-16-to-launch-on-september-9-design-specs-and-everything-we-know-so-far/articleshow/113091114.cms">Apple iPhone 16 to launch on September 9 – design, specs and everything we know so far</a> <a href="https://www.businessinsider.in/stock-market/webstories/shree-tirupati-balajee-agro-trading-ipo-price-band-to-risk-factors-all-you-need-to-know/slidelist/113082663.cms">Shree Tirupati Balajee Agro Trading IPO – Price band to risk factors, all you need to know</a>

Supreme Court agrees to list plea related to insolvency proceedings against ed-tech firm Byju's

<ul class="summary-list"><li>The <keyword id="11893011" type="UNKNOWN" weightage="60" keywordseo="supreme-court" source="Orion">Supreme Court</keyword> has struck down Biden's moratorium on tenant evictions. </li><li>The court ruled 6-3 that the CDC had no jurisdiction over eviction moratoriums. </li><li>Conservative justices argued that "if a federally imposed <keyword id="11957476" type="UNKNOWN" weightage="60" keywordseo="eviction-moratorium" source="Orion">eviction moratorium</keyword> is to continue, Congress must specifically authorize it."</li></ul>In a stunning 6-3 vote, the Supreme Court has struck down Biden's moratorium on tenant evictions. The moratorium was issued earlier this month by the Centers for Disease Control and Prevention, which said it aimed to address areas with "heightened levels of community transmission in order to respond to recent, unexpected developments in the trajectory of the COVID-19 pandemic, including the rise of the Delta variant."It was intended "to target specific areas of the country where cases are rapidly increasing, which likely would be exacerbated by mass evictions," the CDC said.But the court said that the CDC had no authority to issue such a moratorium. In its opinion issued Thursday, the conservative majority said it "strains credulity to believe" that the statute under which the moratorium was imposed - which allows the CDC to take extreme measures to staunch the spread of COVID-19 - "grants the CDC the sweeping authority that it asserts."Further, they argued, "If a federally imposed eviction moratorium is to continue, Congress must specifically authorize it."Justice Stephen Breyer wrote the dissenting opinion, which was supported by Justices Sonia Sotomayer and Elena Kagan. In their dissent, the justices argued that an eviction moratorium was actually a more mild measure than imposing a quarantine, which "arguably impose greater restrictions on individuals' rights and state police powers than do limits on evictions."According to a report from nonprofit research group the <a href="https://www.aspeninstitute.org/wp-content/uploads/2021/07/AI-017-FSP-Report_Eviction-Report_r4.pdf">Aspen Institute</a>, around 15 million people live in some 6.5 million households that are currently behind in rent. Biden had acknowledged that it was likely his eviction moratorium would be struck down, but said he was hoping to buy time to allow for the distribution of $46.5 billion in rent assistance money. So far, however, only around $5 billion of those funds has been disbursed, <a href="https://apnews.com/article/health-courts-pandemics-coronavirus-pandemic-daa34fb48a04dc9f3ddad94fb6b4cbb2?utm_campaign=SocialFlow&amp;utm_source=Twitter&amp;utm_medium=APedium=AP">AP</a> reported.The moratorium was an extension of an earlier moratorium put in place during the Trump administration and was set to expire October 3.The White House called the Supreme Court decision "disappointing" and called on state and local agencies to "urgently act" to prevent evictions.Several states and cities have already said they will keep the current eviction moratorium in place. "California renters will NOT be impacted by this <keyword id="11893589" type="UNKNOWN" weightage="100" keywordseo="news" source="Orion">news</keyword>, the state's eviction moratorium remains in effect. We're focused on ensuring tenants and small landlords get the rent relief they need under California's renter assistance program, the largest in the country," a <a href="https://twitter.com/CAgovernor/status/1431080302596681729">tweet</a> from the Office of the Governor of California said.Mayor Bill de Blasio called the Supreme Court "a group of right-wing extremists" and said that New York "won't stand for this vile, unjust decision."Several members of Congress, including Rhode Island Rep. David Cicilline and <a href="https://twitter.com/CoriBush">Missouri Rep. Cori Bush</a> voiced disappointment with the ruling. Cicilline said in a <a href="https://twitter.com/davidcicilline/status/1431075291116589058">tweet</a> that Congress should return to session to vote to extend the moratorium.

Supreme Court shoots down Biden's moratorium on tenant evictions in 6-3 vote

<ul class="summary-list"><li>One of the two laws the <keyword id="6355838" type="LOCATION" weightage="60" keywordseo="new-york">New York</keyword> Legislature passed regulating pandemic evictions was struck down.</li><li>The majority of the court found that one of the laws violated <keyword id="6374217" type="UNKNOWN" weightage="60" keywordseo="Landlords">landlords</keyword>' right to due process.</li><li>Because the landlords did not challenge the <keyword id="84208" type="PERSON" weightage="60" keywordseo="Tenant">Tenant</keyword> Safe Harbor Act, it remains in place.</li></ul>In a <a href="https://www.supremecourt.gov/opinions/20pdf/21a8_3fb4.pdf">6-3 decision on August 12</a>, the <keyword id="6354977" type="ORGANIZATION" weightage="60" keywordseo="Supreme-Court">Supreme Court</keyword> ruled that the rights of five New York landlords and one landlords' association were violated by the state's <keyword id="9865732" type="UNKNOWN" weightage="60" keywordseo="eviction-moratorium">eviction moratorium</keyword>, which resulted in one of the laws provisions being struck down.During the pandemic, the New York Legislature passed two laws regulating evictions: the <a href="https://www.nysenate.gov/legislation/bills/2019/s8192/amendment/b">Tenant Safe Harbor Act (THSA)</a> and the <a href="https://www.nysenate.gov/legislation/bills/2019/s9114">COVID-19 Emergency Eviction and Foreclosure Prevention Act of 2020</a> (CEEFPA). The court blocked the latter, which barred the <keyword id="6356416" type="UNKNOWN" weightage="60" keywordseo="eviction">eviction</keyword> of any tenant who filed a financial <a href="https://www.nycourts.gov/courts/nyc/SSI/images/corona/HardshipDeclaration.pdf">hardship declaration</a> with their <keyword id="6371484" type="UNKNOWN" weightage="60" keywordseo="landlord">landlord</keyword>, because it violated the landlords' right to due process, <a href="https://www.supremecourt.gov/opinions/20pdf/21a8_3fb4.pdf">according to the order</a>."While I respect the US Supreme Court as a separate judicial entity, I am deeply disappointed in the injunction issued yesterday that invalidates eviction protections for hundreds of thousands of <keyword id="6371483" type="UNKNOWN" weightage="60" keywordseo="tenants">tenants</keyword> and denies New Yorkers this still necessary public health measure," state Sen. Brian Kavanagh, who authored CEEFPA, said in a <a href="https://www.nysenate.gov/newsroom/press-releases/brian-kavanagh/sen-kavanagh-statement-us-supreme-court-invalidating-part-ny">press release</a>.Supreme Court Justices Sonia Sotomayor, Elena Kagan, and Stephen Breyer, who authored the dissenting opinion, cited several reasons they wished to keep CEEFPA in place, including the fact that the state is still distributing federal aid to landlords that would alleviate the need for evictions. Although the order left TSHA intact, all protections under the New York eviction moratorium are set to expire on August 31. Only 55 New York households received financial assistance by the end of July and the state still has $2.35 billion in federal funds and $100 million in state funds left to distribute, according to a <a href="https://www.nysenate.gov/newsroom/press-releases/alessandra-biaggi/senator-biaggi-and-assemblymember-niou-introduce">press release from state Sen. Alessandra Biaggi</a>.

Supreme Court sides with landlords, striking down part of New York's eviction ban

<ul class="summary-list"><li>The <keyword id="11893011" type="UNKNOWN" weightage="60" keywordseo="supreme-court" source="Orion">Supreme Court</keyword> struck down Biden's <keyword id="11957476" type="UNKNOWN" weightage="60" keywordseo="eviction-moratorium" source="Orion">eviction moratorium</keyword> on Thursday.</li><li>That leaves a handful of states, such as New York and California, with eviction bans in place.</li><li>At least 7.4 million people are at risk of eviction in the next few months, per Census Data.</li></ul>The Supreme Court dealt the Biden administration a fresh blow on Thursday evening when it struck down a nationwide eviction moratorium, imperiling millions of renters struggling to catch up on their monthly payments. It leaves just a handful of eviction bans in place at the state level.In a 6-3 ruling, the high court said in an unsigned opinion that the Centers for Disease Control and Prevention had overstepped its authority by imposing a fresh moratorium tailored to areas struggling with high caseloads from the Delta variant. The court's conservative justices said it was up to Congress to renew the moratorium, with three liberal justices in dissent.Now, around <a href="https://www.businessinsider.com/why-the-supreme-court-overturned-bidens-eviction-ban-millions-renters-2021-8">7.4 million people are at risk of eviction</a>, which makes up about 16% of all renters in the US, <a href="https://www.census.gov/programs-surveys/household-pulse-survey/data.html" target="_blank" rel="noopener noreferrer">per data from the Census Bureau</a>.The Biden administration issued the <keyword id="11948117" type="UNKNOWN" weightage="60" keywordseo="eviction-ban" source="Orion">eviction ban</keyword> on August 3 after progressives led by Rep. <keyword id="11964799" type="UNKNOWN" weightage="60" keywordseo="cori-bush" source="Orion">Cori Bush</keyword> of Missouri stepped up pressure on the White House and demanded it. The moratorium was intended to last until October 3, with President <keyword id="99719" type="UNKNOWN" weightage="60" keywordseo="joe-biden" source="Orion">Joe Biden</keyword> saying the main goal was to allow time for the distribution of $46 billion in emergency rental relief aid from his stimulus package.Data from the Treasury Department shows only around 11% of that federal money has reached renters. States and municipalities are grappling with low staffing, onerous documentation requirements, and stubborn landlords who refuse to accept the aid among other bureaucratic hurdles.According to <a href="https://www.nolo.com/evictions-ban">legal information resource site Nolo</a>, seven states and DC still have some eviction bans of their own still in effect, which aren't affected by the Supreme Court's ruling. You can scroll over each state to see more details about the ban:Those states have different approaches to their moratoria. New York has a full eviction ban in place for only four more days, set to expire on August 31. Neighboring New Jersey's ban is more open-ended, intended to last through two months after the end of the emergency.The District of Columbia has a plan to gradually phase out their ban, allowing progressively more legal action by landlords over the next several months.Studies increasingly indicate that states with eviction bans have lower COVID-19 caseloads compared to those that don't. "There's plenty of research that shows eviction moratoria <a href="https://newsroom.ucla.edu/releases/ending-eviction-moratoriums-increased-covid-cases">prevents case growth</a> in states where an eviction moratorium was in place versus states where moratoriums were limited," Paul Williams, a housing expert at the Jain Family Institute, told Insider.<keyword id="11896865" type="UNKNOWN" weightage="60" keywordseo="democrats" source="Orion">Democrats</keyword> who favor an extension of the federal moratorium appear to have their hands tied because they don't have enough votes to pass a renewal in either the House or Senate. Speaker <keyword id="128640" type="UNKNOWN" weightage="60" keywordseo="nancy-pelosi" source="Orion">Nancy Pelosi</keyword> said on Friday that Democrats "will continue our work to ensure that families suffering hardship during the pandemic can have the safety of home" and attempt to speed up the delivery of rental relief.But that may not come fast enough for millions of unemployed people who are on the verge of losing all their income from federal jobless aid after Labor Day. Democrats also don't have enough support for a renewal.

The Supreme Court struck down Biden's eviction ban, but these 7 states and DC are stepping up to protect renters

<ul class="summary-list"><li>Pelosi criticized the <keyword id="11893011" type="UNKNOWN" weightage="60" keywordseo="supreme-court" source="Orion">Supreme Court</keyword> for ending the Biden administration's <keyword id="11957476" type="UNKNOWN" weightage="60" keywordseo="eviction-moratorium" source="Orion">eviction moratorium</keyword>.</li><li>The court "immorally ripped away that relief in a ruling that is arbitrary and cruel," she said.</li><li>Around 7.4 million people are at risk of eviction, according to Census data.</li></ul>House <keyword id="11909045" type="UNKNOWN" weightage="60" keywordseo="speaker" source="Orion">Speaker</keyword> <keyword id="128640" type="UNKNOWN" weightage="60" keywordseo="nancy-pelosi" source="Orion">Nancy Pelosi</keyword> on Friday rebuked the Supreme Court for ending a nationwide eviction ban, which puts millions of vulnerable renters at risk of eviction as new COVID-19 infections sweep the United States."Eviction is a horror that no family should ever have to experience - with cribs and personal belongings on the street, children in fear and distress and parents struggling to find basic shelter," Pelosi said in a statement. "Putting people out of their homes and forcing them to crowd in with others is also a public health risk as the delta variant accelerates."The Supreme Court on Thursday evening <a href="https://www.insider.com/supreme-court-says-bidens-moratorium-on-tenant-evictions-unconstitutional-2021-8">struck down</a> the Biden administration's <a href="https://www.businessinsider.com/biden-limited-eviction-ban-areas-hit-hard-by-delta-2021-8">60-day extension of the eviction moratorium</a>, which was announced on August 3.In a 6-3 decision, the court ruled that the Centers for Disease Control and Prevention, which issued the moratorium, had no legal authority to do so. The conservative majority argued that it's up to <keyword id="11893699" type="UNKNOWN" weightage="60" keywordseo="congress" source="Orion">Congress</keyword> to "specifically authorize" a "federally imposed eviction moratorium." The three liberal justices dissented, arguing that Congress has allocated billions in federal aid to help landlords cover rent, and that an eviction ban isn't as extreme as government-imposed coronavirus lockdown restrictions. "Earlier this month, thanks to the leadership of President Biden and Congressional <keyword id="11896865" type="UNKNOWN" weightage="60" keywordseo="democrats" source="Orion">Democrats</keyword>, the imminent fear of eviction and being put out on the street was lifted for countless families across America with the issuing of a new <keyword id="11917544" type="UNKNOWN" weightage="60" keywordseo="cdc" source="Orion">CDC</keyword> eviction moratorium. Last night, the Supreme Court immorally ripped away that relief in a ruling that is arbitrary and cruel," Pelosi said.She joined a growing number of Democrats who have slammed the court's decision. The White House on Thursday evening <a href="https://www.whitehouse.gov/briefing-room/statements-releases/2021/08/26/statement-by-press-secretary-jen-psaki-on-eviction-moratorium-3/">said</a> it is "disappointed" with the ruling and called on states and cities to prevent <keyword id="11948116" type="UNKNOWN" weightage="60" keywordseo="evictions" source="Orion">evictions</keyword>.President Joe Biden <a href="https://www.businessinsider.com/cdc-legal-authority-extend-evictions-moratorium-white-house-2021-8">had anticipated that extending the eviction moratorium</a> would face legal challenges. The Supreme Court ruled in July that the CDC moratorium was unconstitutional and that any extension on the ban must come from Congress.But Biden <a href="https://www.businessinsider.com/biden-limited-eviction-ban-areas-hit-hard-by-delta-2021-8">renewed the moratorium</a> after he faced pressure from progressive groups and lawmakers to do so. Democratic Rep. Cori Bush of Missouri led a <a href="https://www.insider.com/rep-cori-bush-sleeping-outside-to-extend-the-eviction-moratorium-2021-7">five-day sit-in at the steps of the US Capitol,</a> urging Biden to extend the moratorium as it was set to expire on July 31."We were outside the Capitol for 5 days. Rain. Heat. Cold. If they think this partisan ruling is going to stop us from fighting to keep people housed, they're wrong," Bush <a href="https://twitter.com/CoriBush/status/1431077989840740353?s=20">tweeted</a> on Thursday evening after the court's decision was handed down. "Congress needs to act immediately. For every unhoused or soon to be unhoused person in our districts."Pelosi echoed the call, saying that Democrats "will continue our work to ensure that families suffering hardship during the pandemic can have the safety of home, as we also work with communities to ensure the immediate disbursement by states and localities of the over $45 billion allocated by Congress for rental assistance."The Supreme Court's ruling may put millions of Americans out of a home soon, as landlords now have the power to evict people who are behind on rent due to the coronavirus pandemic. Around <a href="https://www.businessinsider.com/why-the-supreme-court-overturned-bidens-eviction-ban-millions-renters-2021-8">7.4 million people are at risk of eviction</a>, which makes up about 16% of all renters, <a href="https://www.census.gov/programs-surveys/household-pulse-survey/data.html" target="_blank" rel="noopener noreferrer">according to Census data</a>.Coronavirus cases and deaths are spiking in the US. The current 7-day average of daily cases is 142,006, a nearly 3% uptick from last week, and the weekly average of daily deaths is 864, an 11% increase from last week, <a href="https://twitter.com/CDCgov/status/1431010193027051523?s=20">per the CDC.</a>

Pelosi says Supreme Court 'immorally ripped away' relief from Americans in its 'arbitrary and cruel' decision to end eviction moratorium

The <keyword id="6354977" type="ORGANIZATION" weightage="20" keywordseo="Supreme-Court">Supreme Court</keyword> Tuesday deferred to November 5 the hearing on a batch of pleas relating to charging of interest on interest by banks on EMIs which were not paid by the borrowers who availed of the RBI <keyword id="6840678" type="UNKNOWN" weightage="20" keywordseo="loan-moratorium">loan moratorium</keyword> scheme in view of the COVID-19 pandemic. The <keyword id="6354335" type="ORGANIZATION" weightage="20" keywordseo="reserve-bank-of-india">Reserve Bank of India</keyword> and the Finance Ministry have already filed separate additional affidavits in the apex court saying that the banks, financial and non-banking financial institutions will credit into the accounts of eligible borrowers by November 5 the difference between compound and simple interest collected on loans of up to Rs 2 crore during the <keyword id="117489" type="PERSON" weightage="20" keywordseo="moratorium">moratorium</keyword> scheme period. A bench of Justices Ashok Bhushan, R Subhash Reddy and M R Shah was requested by Solicitor General Tushar Mehta that the hearing in the loan moratorium case be deferred as he would be busy arguing on behalf of the Centre in other matter relating to the Central Vista project. "These moratorium matters were listed yesterday but they came up today. I am requesting for an adjournment considering I have a case (Central Vista) where I will be arguing" the law officer said. A letter seeking deferment of the hearing in the case was also circulated by advocate-on-record Anil Katiyar for the Centre to the parties and the bench. The top court acceded to the request and adjourned the hearing on pleas including the one filed by Gajendra Sharma on November 5. The pleas pertained to charging of interest on interest by banks on EMIs which have not been paid by borrowers after availing the loan moratorium scheme of RBI during March 1 to August 31. Earlier, the RBI had filed the affidavit saying that it has asked all banks, financial and non-banking financial institutions to take "necessary actions" to credit into the accounts of eligible borrowers the difference between compound and simple interest collected on loans of up to Rs 2 crore during the moratorium scheme. Prior to this, the central government had told the apex court that lenders have been asked to credit into the accounts of eligible borrowers the difference between compound and simple interest collected on loans of up to Rs 2 crore during the RBI's loan moratorium scheme by November 5. The government had said that the ministry has issued a scheme as per which lending institutions would credit this amount in the accounts of borrowers for the 6-month loan moratorium period which was announced following the COVID-19 pandemic situation. On October 14, the apex court had observed that the Centre should implement "as soon as possible" the interest waiver on loans of up to Rs 2 crore under the RBI's moratorium scheme and had said that the common man's Diwali is in the government's hands. The RBI had on March 27 issued the circular which allowed lending institutions to grant a moratorium on payment of instalments of term loans falling due between March 1, 2020, and May 31,2020, due to the pandemic. Later, the moratorium was extended till August 31 this year. SEE ALSO: <a href="https://www.businessinsider.in/thelife/personalities/news/prajakta-koli-aka-mostlysane-advice-for-content-creators-on-the-fine-line-between-brand-collaborations-and-staying-honest-on-social-media/articleshow/79013162.cms">Prajakta Koli aka MostlySane’s advice for content creators on the fine line between brand collaborations and staying honest on social media</a> <a href="https://www.businessinsider.in/business/ecommerce/news/flipkart-acquires-gaming-startup-mech-mocha-as-it-looks-to-tap-the-social-gaming-space-for-more-consumers/articleshow/79014466.cms">Flipkart acquires gaming startup Mech Mocha as it looks to tap the social gaming space for more consumers</a> <a href="https://www.businessinsider.in/india/news/covid-19-vaccine-updates-pfizer-moderna-to-roll-out-covid-19-vaccine-by-december/articleshow/78924143.cms">COVID-19 vaccine tracker: German CureVac shows an immune response, Aspen Pharmacare and J&amp;J sign pact to make vaccine in South Africa</a>

Supreme Court verdict on loan moratorium case deferred to November 5

<ul><li>State Bank of India (SBI), Axis Bank, HDFC Bank and other banking stocks are treading on the side of caution ahead of the <keyword id="6354977" type="ORGANIZATION" weightage="20" keywordseo="Supreme-Court">Supreme Court</keyword>’s hearing on moratoriums loans today. </li><li>ICICI Bank is the worst hit with its share price dipping by more than 2%.</li><li>The Supreme Court is yet to pass a verdict on whether the moratorium should be extended and if interest on interest should be charged. </li></ul>The Supreme Court is set to resume its hearing on waiving interest on loans that availed moratorium during the coronavirus pandemic today. The last time around, the bench headed by Justice Ashok Bhushan indicated that it was <a href="https://www.businessinsider.in/finance/banks/news/supreme-court-inclined-to-excuse-moratorium-interest-on-interest-as-it-gives-the-government-another-two-weeks-to-file-detailed-affidavit/articleshow/78033878.cms">‘inclined’ to excuse the ‘interest on interest.’</a> However, since then, the hearing has been postponed twice to give the government, <keyword id="6354335" type="ORGANIZATION" weightage="20" keywordseo="reserve-bank-of-india">Reserve Bank of India</keyword> (RBI) and other stakeholders more time to file their response. Banking stocks are cautious in trade ahead of the hearing, most of them in the red. <keyword id="4774972" type="PERSON" weightage="20" keywordseo="icici-bank-share-price">ICICI Bank share price</keyword> is down by as much as 2%, while others remain largely unchanged. <table style="border-width: initial; border-style: none; width: 468pt; table-layout: fixed;"></colgroup><tbody><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Bank </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">% change in share price </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">ICICI Bank </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">-2.33% </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">State Bank of India (SBI) </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">-1.06% </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">IndusInd Bank </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">-1.03% </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Axis Bank </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">-0.42% </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">HDFC Bank </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">-4.0% </td></tr></tbody></table>Source: Share price as of 10:10am on BSE According to Solicitor General Tushar Mehta, a committee had been formed at the ‘highest levels’ to decide on moratorium extension, interest during the moratorium, interest on interest, and other issues related to the moratorium period. The RBI’s stance on loan moratorium In its affidavit, the RBI told the Supreme Court that extending the moratorium beyond six months will impact overall credit discipline and have a ‘debilitating impact’ on the credit creation process. On the issue of compound interest, the RBI asserted that waiver of the same would result in ‘significant economic costs’ for banks to absorb. The larger ripple effect may lead to implications for borrowers and undermine broader financial stability. Central government’s take on loan moratorium The central government asserted that it would waive compound interest (interest on interest) during the moratorium period for MSMEs and personal loans up to ₹2 crore in its affidavit filed ahead of the last hearing. However, Senior Advocate C. Aryama Sundaram argued that the real estate sector is completely left out of the scope. The bench was also not pleased, highlighting that the central government’s affidavit did not provide the necessary details regarding the questions asked by the court earlier. SEE ALSO: <a href="https://www.businessinsider.in/defense/news/india-china-disengagement-looks-unlikely-with-more-chinese-troops-reportedly-being-deployed-at-the-border/articleshow/78632960.cms">Chinese PLA is reportedly rotating troops despite India's insistence on disengagement from friction points along the border</a> <a href="https://www.businessinsider.in/business/corporates/news/wipros-second-quarter-will-be-telling-of-how-its-new-ceo-is-steering-the-ship/articleshow/78623027.cms">Wipro's second-quarter will be telling of how its new CEO is steering the ship</a> <a href="https://www.businessinsider.in/policy/economy/news/sitharaman-offers-states-12000-crore-interest-free-for-the-next-50-years-if-they-can-spend-it-on-capital-projects-by-march-2021/articleshow/78616741.cms">Sitharaman offers states ₹12,000 crore interest-free for the next 50 years if they can spend it on capital projects by March 2021</a> <a href="https://www.businessinsider.in/science/space/news/mars-will-appear-bigger-redder-and-brighter-on-october-13-and-wont-get-this-close-to-earth-again-until-2035/articleshow/78556539.cms">Mars will appear bigger, redder, and brighter on October 13 — and won’t get this close to Earth again until 2035</a>

SBI, HDFC Bank, Axis Bank and other bank stocks tread caution as they wait with bated breath for Supreme Court verdict on moratorium

It's an incredible feeling to finally become free of student debt, to feel the financial weight lifted off your shoulders after years of worrying about making payments.I've gotten to see this joy over the past year by helping people apply for debt cancellation through the government's Public Service Loan Forgiveness temporary waiver. The PSLF program cancels federal student loans for people who work in public-service jobs for 10 years, and the impact of relief is profound. I've seen school principals <a href="https://twitter.com/SecCardona/status/1616147253248270338" target="_blank" rel="noopener">finally be able to afford groceries</a> and teachers <a href="https://twitter.com/ontheBalledu/status/1480996772373843969?s=20&amp;t=jLbyADZQUB3nwd7-sG8Pcg" target="_blank" rel="noopener">weep in disbelief</a>. Some, like my sister who is a social worker for the Department of Veterans Affairs, even get a refund check for overpayments in addition to full cancellation.For the most part, my work has helped trigger <a href="https://twitter.com/bethbourdon/status/1493675662854561799" target="_blank" rel="noopener">celebrations</a>, but not always. After several of her coworkers were already on track to get their loans canceled, Rosey Olivero wrote to me with troubling news. She got a letter from her loan servicer saying she didn't qualify for cancellation. Rosey is a pediatric infectious-disease specialist who specializes in treating children with HIV. She's exactly the kind of public servant that PSLF was intended for. After investigating, we discovered the problem: She had refinanced her federal student loans in 2017 with a private lender.The vast majority of student loans, <a href="https://www.newyorkfed.org/medialibrary/interactives/householdcredit/data/pdf/HHDC_2022Q4" target="_blank" rel="noopener">about $1.6 trillion</a> worth, is owed directly to the federal government. But there are many private lenders that try to persuade borrowers to refinance with them. According to <a href="https://files.consumerfinance.gov/f/documents/cfpb_education-loan-ombudsman_report_2022-10.pdf" target="_blank" rel="noopener">the Consumer Financial Protection Bureau</a>, private lenders hold $128 billion in student-loan debt. These lenders lure people in with a <a href="https://www.businessinsider.com/biden-student-loan-forgiveness-stripped-away-refinance-private-loan-debt-2022-8">barrage of marketing</a> that promises thousands of dollars of savings through lower interest rates. Once someone agrees to refinance, the companies pay off their federal student loans in full and issue a brand-new private loan in the same amount but with different terms. In the process, borrowers forfeit many protections that come with federal student loans, including the chance to get their loans canceled.According to the lender's sales pitch, Rosey would save more than $100,000 over the long run by refinancing. At the time, that seemed like a good deal. But if she hadn't refinanced, she would have gotten the entire loan canceled. Today, she still has $90,000 to pay off. The devastating news was a gut punch.Most federal student-loan payments are still paused until <a href="https://www.businessinsider.com/student-loan-forgiveness-blocked-supreme-court-strikes-down-debt-cancellation-2023-5">later this summer</a>. But once payments resume, millions of people will be bombarded with letters, emails, and phone calls from private companies trying to persuade them to refinance their student loans. One private lender is even <a href="https://www.businessinsider.com/end-student-loan-payment-pause-sofi-files-lawsuit-block-relief-2023-3" rel="nofollow sponsored">suing the Department of Education</a> to resume payments sooner since they can't compete with a moratorium on student-loan payments. But reader, be forewarned: There are many reasons to avoid falling for their ploy.<h2>Rise of refinancers</h2>The student-loan-refinancing industry exploded in the wake of the 2008 financial crisis. <a href="https://www.nytimes.com/2010/05/09/magazine/09fob-wwln-t.html" target="_blank" rel="noopener">Many suddenly unemployed workers went back to school</a> in hopes that more education would make them more competitive in a recession. At the same time, <a href="https://www.demos.org/research/great-cost-shift-continues" target="_blank" rel="noopener">states were drastically cutting funding for universities</a> in an attempt to deal with their own fiscal problems, and universities <a href="https://www.cbpp.org/research/state-budget-and-tax/state-higher-education-funding-cuts-have-pushed-costs-to-students" target="_blank" rel="noopener">raised tuition</a> to make up for the shortfall. Total student debt <a href="https://www.democracynow.org/2012/4/25/1_t_day_as_us_student" target="_blank" rel="noopener">surpassed $1 trillion for the first time in 2012</a>. Sensing an untapped opportunity, a flurry of fintech startups cashed in with "innovations" that were little more than traditional predatory practices dressed up with new, internet-driven packaging.Before 2010, federal student loans were created by private institutions like Sallie Mae but guaranteed by the federal government — so if a borrower couldn't end up paying, the government would step in. Student debt was a moneymaking machine: Lenders would even package these guaranteed loans and sell them to investors. But it was a raw deal for the government, and in 2010, President Barack Obama <a href="https://www.nytimes.com/2010/03/31/us/politics/31obama.html" target="_blank" rel="noopener">cut out the intermediaries</a> and had the government start issuing federal student loans directly. Private lenders refused to stand by and let their cash cow dry up, so they pivoted to refinancing student loans. Startups like SoFi, LendKey, and CommonBond were soon joined by more-traditional lenders like Discover. And Navient, which spun off from Sallie Mae, quickly became a major refinancer.These private lenders have spent millions of dollars chasing down customers and lobbying against loan-assistance programs. In the first 1 ½ years of the pandemic, they collectively spent <a href="https://www.opensecrets.org/news/2021/08/student-loan-companies-spend-millions-lobbying-amid-extended-moratorium/" target="_blank" rel="noopener">$6 million</a> lobbying lawmakers to resume student-loan payments. And now, SoFi is <a href="https://www.businessinsider.com/end-student-loan-payment-pause-sofi-files-lawsuit-block-relief-2023-3" rel="nofollow sponsored">suing the Department of Education</a> to end the COVID payment pause. While data is sparse, SoFi spent $170 million in marketing in 2017, according to <a href="https://www.fastcompany.com/40539348/sofi-pays-premium-prices-to-acquire-its-prime-customers" target="_blank" rel="noopener">Fast Company</a>, and planned to spend $200 million in 2018.<div type="image" title="Supreme Court" height="2784" width="5568" msid="98306190" hostid="261"></div>Refinancing companies are able to grab customers for one reason: interest rates. The <a href="https://www.huffpost.com/entry/elizabeth-warren-student-loans_n_3240407" target="_blank" rel="noopener">high interest rates Congress</a> has set on federal student loans have allowed refinancing companies to turn a quick profit by offering some borrowers much-lower interest rates and promising smaller monthly payments. While this offer may seem like a godsend for cash-strapped graduates, it comes with a slew of downsides.<h2>If you refinance your student loans, you could pay more</h2>Many people who refinance actually end up paying <a href="https://www.ftc.gov/system/files/documents/cases/162_3197_sofi_draft_admin_compl_10-26-18_rc_not_rec.pdf" target="_blank" rel="noopener">thousands of dollars more in interest</a> over the long run. For example, someone with $100,000 in federal graduate student loans at the current 6.54% interest rate would make monthly payments of $1,138 on the standard 10-year plan and end up paying $36,502 in interest over the lifetime of the loan. But if they refinanced for a lower monthly payment of $660 at a lower interest rate of 5% over a 20-year repayment plan, it would cost them $58,390 in interest over the long term. People can also get enticed into a variable interest rate: Unlike federal loans, which have a locked-in interest rate from start to finish, privately refinanced loans might start out with a low rate, only to skyrocket years down the line because of changing market rates. In 2018, the Federal Trade Commission sued SoFi, alleging its marketing misled people about how much <a href="https://www.cnbc.com/2018/10/31/a-popular-student-debt-lender-is-accused-of-misleading-borrowers.html" target="_blank" rel="noopener">money they would save if they refinanced</a>. In a comment given to CNBC at the time, a spokesperson for SoFi disputed the FTC's characterization: "We have always been committed to giving our current and prospective members clear and complete information with which to make smart financial choices, and are pleased to have this matter resolved."But for many borrowers, the complicated and confusing terms of refinancing offers turn into a boondoggle. Nikki Giraffo is a teacher who felt like she was entering a hall of mirrors anytime she tried to explore her options. Every time she called Navient, her federal-loan servicer, she seemed to get a different answer. On one of those calls to Navient, the representative suggested refinancing her loans privately. Nikki ended up refinancing twice, first with Citizens Bank and then with NaviRefi, but did not end up saving any money. Nikki told me that she felt "lied to and pushed around" by the various loan companies. When I asked her whether she regretted refinancing, she told me "1,000%." Nikki is not alone. In one survey, more than one-third of respondents who refinanced their federal student loans said they <a href="https://money.usnews.com/loans/student-loans/articles/student-loan-refinancing-survey" target="_blank" rel="noopener">eventually came to regret it</a>.<h2>If you refinance your student loans, you risk losing out on government assistance</h2>The Education Department offers various payment plans to ease the debt burden for borrowers. Income-driven plans allow borrowers to pay a percentage of their income toward the loans with no penalty — giving people the ability to pay little or nothing on their student loans when they can't afford to. And the Biden administration has <a href="https://www.ed.gov/news/press-releases/new-proposed-regulations-would-transform-income-driven-repayment-cutting-undergraduate-loan-payments-half-and-preventing-unpaid-interest-accumulation" target="_blank" rel="noopener">proposed changes</a> that will allow millions more people to make $0 monthly payments while not accruing interest. This summer, the Education Department will also conduct a massive <a href="https://studentaid.gov/announcements-events/idr-account-adjustment" target="_blank" rel="noopener">account adjustment</a> that will cancel debt for millions of people and put millions more much closer to cancellation.<div type="image" title="George Washington University student Kai Nilsen and other student loan debt activists rally outside the White House a day after President Biden announced a plan that would cancel $10,000 in student loan debt for those making less than $125,000 a year in Washington, DC, on August 25, 2022." height="1992" width="2657" msid="98306192" hostid="261"></div>The most headline-grabbing piece of student-debt news over the past few years was Biden's <a href="https://www.businessinsider.com/biden-student-loan-forgiveness-one-time-no-more-broad-relief-2022-8">plan to cancel up to $10,000 in federal student loans</a> ($20,000 for those with Pell Grants) for anyone making less than $125,000 a year. While the plan was struck down by the <a href="https://www.businessinsider.com/student-loan-forgiveness-blocked-supreme-court-strikes-down-debt-cancellation-2023-5">Supreme Court</a>, it would have only helped those who had not previously refinanced their loans with a private company.Refinancing companies had told people to leave $10,000 or $20,000 of federal student loans un-refinanced to stay eligible for Biden's cancellation plan. But even if you did that, you are still locking yourself into a long-term private loan that will prevent you from being eligible for any future cancellation. <h2>If you refinance your student loans, you can put your family at risk</h2>To get approved and the lowest rates, most people who refinance their student loans are required to have a cosigner — someone who agrees to pay if you can't. This is most often a spouse, parents, or children. If a borrower loses their job or isn't able to work, the cosigner is still on the hook for the debt. If the cosigner can't make the payments, either, it can destroy their credit and the lender can sue to garnish their wages. It's also not uncommon for the terms of the loan <a href="https://files.consumerfinance.gov/f/201404_cfpb_midyear-report_private-student-loans-2014.pdf" target="_blank" rel="noopener">to require a lump-sum payment</a> if the cosigner dies or files for bankruptcy. Imagine being forced to come up with $400,000 with 30 days' notice after the death of a close family member — when things go bad, they go very bad.Federal student loans, by contrast, do not require a cosigner. If you get laid off or fall on hard times and can't make a payment, none of your loved ones will be saddled with this debt. You can file paperwork that will lower or eliminate your payments. People undergoing <a href="https://studentaid.gov/sites/default/files/CancerTreatmentDeferment.pdf" target="_blank" rel="noopener">cancer treatment</a>, for example, can get their federal loans deferred. And if you die, your loans get discharged.<div type="image" title="Doctor Ali Jamehdor, Chief Director of the Emergency Room of the Dignity Health - St. Mary Medical Center, stands in front of a Covid-19 triage tent for patients with symptoms in Long Beach, California, on December 17, 2020. - Over the last two weeks, the number of new Covid-19 cases in 24 hours has climbed above 200,000 for 11 out of 14 days. Experts now fear the situation will become even more dire following end of year celebrations, including the Christmas holiday. (Photo by Apu GOMES / AFP) (Photo by APU GOMES/AFP via Getty Images)" height="4320" width="5760" msid="98306194" hostid="261"></div>In my years of helping people buried in debt, the most painful conversations have surrounded cosigners. It's bad enough to find your own life in financial ruin, but to be the cause of financial stress to those you love the most is heart-wrenching. Recent changes to the law require <a href="https://www.congress.gov/bill/115th-congress/senate-bill/2155" target="_blank" rel="noopener">private student loans to be discharged if you die</a>, but that isn't the case with older loans. Since refinancing companies love to target doctors loaded up with medical-school debt, this became an additional source of stress during the worst of the COVID-19 crisis. As Andrew Tisser, an emergency-room doctor who refinanced with a private company, <a href="https://news.yahoo.com/medical-workers-tackling-coronavirus-theyre-185600436.html" target="_blank" rel="noopener">put it</a>, "If I were to die from COVID right now, my family would be stuck with $433,000." Most private student loans allow for some kind of "cosigner release" so no one else is on the hook for your loans. But in my experience, it's <a href="https://files.consumerfinance.gov/f/201404_cfpb_midyear-report_private-student-loans-2014.pdf" target="_blank" rel="noopener">hard to get these private lenders to honor their own policies</a>.<h2>Refinancing companies make the system worse for everyone</h2>Private refinancing companies don't just hand out their loans to anyone. The ideal targets for these companies are people who have a solid credit score, high income, and a large student-loan balance — in the hundreds of thousands. They typically target doctors, lawyers, and people with graduate degrees in STEM fields since they represent the lowest risk. While refinancing companies use "colorblind" metrics like income, the school you graduated from, and your major, it just so happens that the kind of people whom refinance companies approve turn out to be mostly well-off <a href="https://www.americanbanker.com/news/upstart-says-its-improving-ai-models-after-report-finds-race-approval-disparities" target="_blank" rel="noopener">white men</a>. A 2020 study by the Student Borrower Protection Center found students who attended historically Black colleges and universities <a href="https://protectborrowers.org/new-report-finds-educational-redlining-penalizes-borrowers-who-attended-community-colleges-and-minority-serving-institutions-perpetuates-systemic-disparities/" target="_blank" rel="noopener">got rejected more often and had higher rates when approved</a>.And by siphoning off the people most likely to pay off their whole loan balance, refinancing companies leave the government with the borrowers who are most likely to end up not being able to pay, which drives up the cost of higher education for everyone.<h2>So who should consider refinancing their student loans?</h2>There is one situation where it might make sense to refinance: if your student loans are already private. This is especially true for people with private loans from before <a href="https://www.congress.gov/bill/115th-congress/senate-bill/2155" target="_blank" rel="noopener">legal protections were added in 2018</a>. If refinancing a loan that is already private can get you a lower interest rate or release your cosigner, then it's absolutely in your best interest to refinance. But since interest rates are rising, you're unlikely to find a better deal anytime soon.For everyone else, the risks of refinancing are almost always too high. Many of the well-paid student debtors targeted by refinancing companies might think that they have more financial security and can afford to take that risk. But as the recent wave of mass layoffs at Silicon Valley giants like Microsoft, Google, and Facebook show, a sudden job loss can happen to anyone. Most Americans are <a href="https://khn.org/news/article/diagnosis-debt-investigation-faces-of-medical-debt/" target="_blank" rel="noopener">one slip on a banana peel</a> away from <a href="https://www.cnbc.com/2019/02/11/this-is-the-real-reason-most-americans-file-for-bankruptcy.html" target="_blank" rel="noopener">bankruptcy</a>. Millions of people are <a href="https://www.brookings.edu/research/new-data-shows-long-covid-is-keeping-as-many-as-4-million-people-out-of-work/" target="_blank" rel="noopener">unable to work because of long COVID</a>. You are much better off having the protections that come with federal student loans if you get laid off or have a sudden medical emergency. Private lenders are quick to swarm borrowers with tantalizing offers of large savings and may seem like a godsend for hardworking people living with the constant pressure of student loans. But if you fall for the pitch, you risk losing out on a whole lot of protections.When I asked Nikki what advice she would give, she told me, "Trust no one. Hang up the phone. They are preying on literal desperation."<a href="https://www.businessinsider.com/author/thomas-gokey">Thomas Gokey</a> is a co-founder of the Debt Collective, a union for debtors where he currently serves as a case worker and policy director.

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