Author Topic: Biden administration scales back student loan forgiveness plan as states sue  (Read 266 times)

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Offline Right_in_Virginia

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Biden administration scales back student loan forgiveness plan as states sue
CBS/Boston, Sep 29, 2022, CNN News

The Biden administration scaled back eligibility for its student loan forgiveness plan Thursday, the same day six Republican-led states sued President Joe Biden in an effort to block his student loan forgiveness plan from taking effect.

Borrowers whose federal student loans are guaranteed by the government but held by private lenders will now be excluded from receiving debt relief. Around 770,000 people will be affected by the change, according to an administration official.

The Department of Education initially said these loans, many of which were made under the former Federal Family Education Loan program and FEderal Perkins Loan program, would be eligible for the one-time forgiveness action as long as the borrower consolidated his or her debt into the federal Direct loan program.

On Thursday, the department reversed course. According to its website, privately held federal student loans must have been consolidated before September 29 in order to be eligible for the debt relief.

Borrowers with privately held federal student loans who have not consolidated yet are currently out of luck, though the Department of Education said it "is assessing whether there are alternative pathways" to provide relief.

Borrowers with privately held federal student loans represent a small portion of the 43 million federal student loan borrowers. There are about 4 million borrowers with Federal Family Education Loans, but not all of those people are likely eligible for the loan forgiveness plan, which also includes an income requirement.

https://www.cbsnews.com/boston/news/student-loan-debt-forgiveness-scaled-back-biden-lawsuits/


Offline christian

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The less money Joe gives to Americans, the more he can allocate to foreigners, pervs and deviants. 
The mindless/brainless won't care.
Card carrying member of the national F-Joe Biden movement, and his minions