Biden Admin Makes a Sneaky Change to Loan Relief Plan – You May No Longer Be Eligible
The U.S. Department of Education made a stealthy change on Thursday to President Joe Biden’s loan forgiveness plan, leaving many hopeful borrowers high and dry. The most affected are likely to be borrowers of Perkins or…
The U.S. Department of Education made a stealthy change on Thursday to President Joe Biden’s loan forgiveness plan, leaving many hopeful borrowers high and dry.
The most affected are likely to be borrowers of Perkins or Federal Family Education Loans, according to NPR.
FFELs are loans given and managed by banks but guaranteed by the federal government. Before the lending program was shut down in 2010, FFELs were a staple of federal student loans.
According to NPR, the number of FFEL borrowers is upward of 4 million.
Prior to September, the DOE’s website had previously said that borrowers of these loans would simply have to consolidate them into federal Direct Loans. This would allow the borrowers to qualify for Biden’s Debt forgiveness plan.
“Borrowers with privately held federal student loans can receive this relief by consolidating these loans into the Direct Loan program,” the website reportedly said.
But on Thursday the DOE released new guidance on the policy — a complete reversal of the previous one — and seemingly on the sly.