Posted on 09/29/2022 2:14:19 PM PDT by Brookhaven
In a remarkable reversal that will affect the fortunes of millions of student loan borrowers, the U.S. Department of Education has quietly changed its guidance around who qualifies for President Biden's sweeping student debt relief plan.
At the center of the change are borrowers who took out federal student loans many years ago, both Perkins loans and Federal Family Education Loans. FFEL loans, issued and managed by private banks but guaranteed by the federal government, were once the mainstay of the federal student loan program until the FFEL program ended in 2010.
Today, according to federal data, more than 4 million borrowers still have commercially-held FFEL loans. Until Thursday, the department's own website advised these borrowers that they could consolidate these loans into federal Direct Loans and thereby qualify for relief under Biden's debt cancellation program.
On Thursday, though, the department quietly changed that language. The guidance now says, "As of Sept. 29, 2022, borrowers with federal student loans not held by ED [the federal Department of Education] cannot obtain one-time debt relief by consolidating those loans into Direct Loans."
(Excerpt) Read more at laist.com ...
If you write a check to a commercial bank, you are NOT eligible for loan forgiveness.
About 4 million voters Biden was hoping to buy off in the fall election are now mad as hell.
Awesome!
bttt
” Indian Giver!!”
I guess when you just make things up when you go, and are doing things completely outside of any legal framework, it is hard to apply the rules, or know what the rules are, or even know if there are rules.
Six states just sued to Gov’t using this argument as harm … (in my Paul Harvey voice), ‘and now we know, the rest of the story’
Someone else is suing arguing that the loan forgiveness would saddle him with an immediate tax bill he cannot pay.
You must pay taxes on any forgiven debt in most states.
I thought Covid forbearance on student loans had been extended to the end of 2022.
Gotta love the gubmint... giveth with one hand, take back with the other!
“There’s a sucker born every minute!” - P.T. Barnum
I did not know that. Thank you!
Lucy Van Pelt FTW!!
racist :)
don’t you know its “first persons giver”
/s
Smart people would keep making at least the same payment they were. With no interest being charged, they could’ve made a nice dent in their loans.
I’m surprised they didn’t hold off until 9 November.
Forget those poor souls!
Us poor suffering taxpayers, who will have to payoff these non-performing student loans ARE REALLY PISSED OFF!
Way to go, Joe! Keep it up and keep pissing us off!
I graduated from Stanford 2007. I took part time jobs, was on half-scholarship due to athletics and never asked money from my parents. The new gen these days are effing weak and irresponsible. I took the Pell Grant only as a “just in case” insurance but paid it back quickly, and was debt free within the year after graduation.
Eh. Bidet will wave his magic diaper and fix this.
lol!
Classic. These bumblers would F* up a wet dream.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.