Student loan forgiveness: New change means 4 million borrowers are no longer eligible
A change in the White House’s student loan forgiveness plan means millions of Americans no longer qualify.
The Education Department announced it will no longer allow borrowers with privately held student loans to receive debt forgiveness. Previously, people with the loans – known as Perkins loans and Federal Family Education Loans – could consolidate their loans and qualify for one-time student loan forgiveness. That’s changed, however, a move that could exclude some 4 million borrowers from debt forgiveness.
In new verbiage on its website, the Education Department has this message:
“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. Borrowers with FFEL Program loans and Perkins Loans not held by ED who have applied to consolidate into the Direct Loan program prior to Sept. 29, 2022, are eligible for one-time debt relief through the Direct Loan program. ED is assessing whether there are alternative pathways to provide relief to borrowers with federal student loans not held by ED, including FFEL Program loans and Perkins Loans, and is discussing this with private lenders.”
https://www.al.com/news/2022/09/student-loan-forgiveness-new-change-means-4-million-borrowers-are-no-longer-eligible.html
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