Biden Admin Discreetly Changes Student Loan Relief Act, Making Millions Of Borrowers Ineligible For Forgiveness
Erika Hanson - Yesterday 9:30 PM
Biden is touting his unprecedented plan for student loan forgiveness as a major debt reliever for millions of Americans. However, a recent report from NPR found that his administration has discreetly changed a major portion of the program’s guidance. This revision removed Perkins and Federal Family Education Loans (FFEL) as qualifiers, leaving millions now seemingly ineligible.
More than four million borrowers hold these types of loans, according to federal data. Before Thursday, September 29th, the Federal Student Aid site for student loan forgiveness listed both types of loans as being eligible. The guidance noted that they could be consolidated into a federal Direct Loan, which would in turn qualify them for the program.
But as of today, that guidance has changed. It reads, "As of Sept. 29, 2022, borrowers with federal student loans not held by ED cannot obtain one-time debt relief by consolidating those loans into Direct Loans." It remains unclear why the administration decided to major this major change to the student loan forgiveness program.
https://www.msn.com/en-us/money/personalfinance/biden-admin-discreetly-changes-student-loan-relief-act-making-millions-of-borrowers-ineligible-for-forgiveness/ar-AA12rHb4?ocid=msedgntp&cvid=1aecddd27801464bae17691cd000fd44
