Biden administration to cancel student loan debt for at least 40,000 borrowers. SCOTUS strikes down Biden’s student loan relief plan
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Yeah some states just filed a lawsuit
Damn my brother's FFELP provider advised him to consolidate to a direct loan on Tuesday to have a better chance at qualifying for forgiveness and he hadn't started the application process yet
I initially read your post as states were filing suit on behalf of FFELP borrowers in response to this change...
But NO, those states filed on behalf of private banks who'll stand to lose money by keeping FFELP loans in the forgiveness program
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r/StudentLoans
Posted by u/Betsy514
19 hours ago
ffel faq language updated..try not to freak out
The feds updated the language on their site to say that only ffel consolidated before September 29th are eligible for the debt relief. This sounds like horrible news but I'm taking it to mean they have a non consolidation solution in the works for those loans.
"The following types of federal student loans with an outstanding balance as of June 30, 2022, are eligible for relief:
William D. Ford Federal Direct Loan (Direct Loan) Program loans Federal Family Education Loan (FFEL) Program loans held by ED or in default at a guaranty agency Federal Perkins Loan Program loans held by ED Defaulted loans (includes ED-held or commercially serviced Subsidized Stafford, Unsubsidized Stafford, parent PLUS, and graduate PLUS; and Perkins loans held by ED) This means that subsidized loans, unsubsidized loans, parent PLUS loans, and graduate PLUS loans held by ED are eligible. Consolidation loans are also eligible for relief, as long as all of the underlying loans that were consolidated were ED-held loans and were disbursed on or before June 30, 2022. Additionally, consolidation loans comprised of any FFEL or Perkins loans not held by ED are also eligible, as long as the borrower applied for consolidation before Sept. 29, 2022."
I know I said don't freak out but honestly I am a bit myself. We had all been told to hang tight on those ffel. But that's also why I'm feeling fairly confident it means there's a solution in the works.
All we can do is wait and see. If I hear anything I'll update right away
Edit:. I just confirmed that even yesterday the language said they were working on a solution for the ffel. I'm going to keep digging on this and will update if I hear anything. I really can't imagine they will leave those hanging.
Edit:. In the meantime I encourage all affected borrowers to call and email your congressional reps. I usually don't advise big campaigns like that but in this case I think it's needed.
Edit: here's a quote from a subscription only politico article. So there's still hope.
Our goal is to provide relief to as many eligible borrowers as quickly and easily as possible, and this will allow us to achieve that goal while we continue to explore additional legally-available options to provide relief to borrowers with privately owned FFEL loans and Perkins loans, including whether FFEL borrowers could receive one-time debt relief without needing to consolidate," an Education Department spokesperson said in a statement.
Edit:. This is how insane this whole thing is. Commercial defaulted borrowers are still eligible for the debt relief. So hypothetically someone could default..get the relief..then do fresh start assuming that's still being offered. To be clear I am NOT advocating ffel borrowers default. It will still screw up your credit and I still think a solution will be found. Just pointing out how stupid this is.
118 upvotes
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738 comments
Posted by u/Betsy514
19 hours ago
ffel faq language updated..try not to freak out
The feds updated the language on their site to say that only ffel consolidated before September 29th are eligible for the debt relief. This sounds like horrible news but I'm taking it to mean they have a non consolidation solution in the works for those loans.
"The following types of federal student loans with an outstanding balance as of June 30, 2022, are eligible for relief:
William D. Ford Federal Direct Loan (Direct Loan) Program loans Federal Family Education Loan (FFEL) Program loans held by ED or in default at a guaranty agency Federal Perkins Loan Program loans held by ED Defaulted loans (includes ED-held or commercially serviced Subsidized Stafford, Unsubsidized Stafford, parent PLUS, and graduate PLUS; and Perkins loans held by ED) This means that subsidized loans, unsubsidized loans, parent PLUS loans, and graduate PLUS loans held by ED are eligible. Consolidation loans are also eligible for relief, as long as all of the underlying loans that were consolidated were ED-held loans and were disbursed on or before June 30, 2022. Additionally, consolidation loans comprised of any FFEL or Perkins loans not held by ED are also eligible, as long as the borrower applied for consolidation before Sept. 29, 2022."
I know I said don't freak out but honestly I am a bit myself. We had all been told to hang tight on those ffel. But that's also why I'm feeling fairly confident it means there's a solution in the works.
All we can do is wait and see. If I hear anything I'll update right away
Edit:. I just confirmed that even yesterday the language said they were working on a solution for the ffel. I'm going to keep digging on this and will update if I hear anything. I really can't imagine they will leave those hanging.
Edit:. In the meantime I encourage all affected borrowers to call and email your congressional reps. I usually don't advise big campaigns like that but in this case I think it's needed.
Edit: here's a quote from a subscription only politico article. So there's still hope.
Our goal is to provide relief to as many eligible borrowers as quickly and easily as possible, and this will allow us to achieve that goal while we continue to explore additional legally-available options to provide relief to borrowers with privately owned FFEL loans and Perkins loans, including whether FFEL borrowers could receive one-time debt relief without needing to consolidate," an Education Department spokesperson said in a statement.
Edit:. This is how insane this whole thing is. Commercial defaulted borrowers are still eligible for the debt relief. So hypothetically someone could default..get the relief..then do fresh start assuming that's still being offered. To be clear I am NOT advocating ffel borrowers default. It will still screw up your credit and I still think a solution will be found. Just pointing out how stupid this is.
118 upvotes
•
738 comments
...part of the reason I still have student loan debt is because I decided to pay off the private loans first. Glad I did in hindsight.
Fyi: I received the email yesterday updating the application process. Says we should still receive the basic form to complete in October and they'll be reviewing applications/ adjusting accounts thru Dec....
Fyi: I received the email yesterday updating the application process. Says we should still receive the basic form to complete in October and they'll be reviewing applications/ adjusting accounts thru Dec....
Smart move
See.
Always these grandiose plans, then get scaled back to next to nothing, then they say "look what we accomplished".
Government is a Do whatever the FUCK I want and get away with it card.
Homelander is in charge behind the scenes.
of course those states did.
It came to mind that the money not received from student borrowers relief is small dollars compared to what a more equitable tax system for ultra wealthy companies/corporations would generate.
In Reversal, Biden Administration Announces New Eligibility Limits On Student Loan Forgiveness
The Biden administration abruptly changed course on Thursday and announced it will limit eligibility for a sweeping new federal student loan forgiveness program to borrowers who have government-held loans only. This would exclude hundreds of thousands of borrowers with an older kind of federal student loan who were previously told they could qualify.
Here’s the latest.
Biden’s Student Loan Forgiveness Plan Included Path To Cancellation For Many Borrowers
Under the plan first announced in August, President Joe Biden’s one-time student loan cancellation initiative would provide up to $20,000 in federal student loan forgiveness for borrowers. The Education Department suggested that up to 40 million borrowers would be eligible for relief, with up to half of those borrowers becoming completely debt-free.
The Education Department had originally indicated that all government-held federal student loans, including undergraduate, graduate, and Parent PLUS loans, would qualify for loan forgiveness. Commercially-held loans through the Family Federal Education Loan (FFEL) program would not automatically qualify, said the Department, but borrowers could consolidate those loans into a Direct consolidation loan to receive the student loan forgiveness benefits. The FFEL program is an older federal student loan program, discontinued in 2010, where private lenders issued federal loans backed or guaranteed by the government.
“Borrowers with privately held federal student loans, such as through the FFEL, Perkins, and HEAL programs, can receive this relief by consolidating these loans into the Direct Loan program,” wrote the Education Department in its published guidance.
Biden Administration Reverses Course On FFEL Loan Eligibility For Student Loan Forgiveness
In a stunning reversal on Thursday, the Education Department changed its position on FFEL eligibility for student loan forgiveness.
“As of Sept. 29, 2022, borrowers with federal student loans not held by ED [the U.S. Department of Education] cannot obtain one-time debt relief by consolidating those loans into Direct Loans,” wrote the Education Department in updated guidance published on its website.
The Education Department clarified that, “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,” ensuring that borrowers who already took steps to consolidate are effectively grandfathered in.
And borrowers who have already consolidated their FFEL loans could also still potentially qualify for relief. In addition to Direct consolidation loans comprised of loans that were held by the Education Department, “Consolidation loans comprised of any FFEL or Perkins loans not held by [the Education Department] are also eligible, as long as the borrower applied for consolidation before Sept. 29, 2022,” according to the new guidance.
But other borrowers may be out of luck.
Advocacy organizations for student loan borrowers slammed FFEL lenders following the announcement. “FFEL lenders have shown their true colors,” said the Student Borrower Protection Center in a tweet on Thursday. “Instead of working in the interest of student loan borrowers – their customers – these lenders are holding hostage relief from millions in order to keep making a buck off of suffering.”
Biden Administration Concerned About Lawsuits To Block Student Loan Forgiveness
The Biden administration’s reversal seems to stem from concerns that commercial FFEL lenders may proceed with litigation to block the new student loan forgiveness plans. FFEL lenders could have their federal student loan portfolios severely reduced if hundreds of thousands of borrowers consolidate into the Direct loan program to get the new student loan forgiveness benefits.
The Education Department indicated that the administration 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.” But nothing is guaranteed at this juncture.
Earlier this week, a conservative legal organization filed a lawsuit intended to block the new student loan forgiveness program. And today, six Republican-led states announced they would be suing the Biden over the plan, arguing the administration exceeded its authority.
The Biden administration abruptly changed course on Thursday and announced it will limit eligibility for a sweeping new federal student loan forgiveness program to borrowers who have government-held loans only. This would exclude hundreds of thousands of borrowers with an older kind of federal student loan who were previously told they could qualify.
Here’s the latest.
Biden’s Student Loan Forgiveness Plan Included Path To Cancellation For Many Borrowers
Under the plan first announced in August, President Joe Biden’s one-time student loan cancellation initiative would provide up to $20,000 in federal student loan forgiveness for borrowers. The Education Department suggested that up to 40 million borrowers would be eligible for relief, with up to half of those borrowers becoming completely debt-free.
The Education Department had originally indicated that all government-held federal student loans, including undergraduate, graduate, and Parent PLUS loans, would qualify for loan forgiveness. Commercially-held loans through the Family Federal Education Loan (FFEL) program would not automatically qualify, said the Department, but borrowers could consolidate those loans into a Direct consolidation loan to receive the student loan forgiveness benefits. The FFEL program is an older federal student loan program, discontinued in 2010, where private lenders issued federal loans backed or guaranteed by the government.
“Borrowers with privately held federal student loans, such as through the FFEL, Perkins, and HEAL programs, can receive this relief by consolidating these loans into the Direct Loan program,” wrote the Education Department in its published guidance.
Biden Administration Reverses Course On FFEL Loan Eligibility For Student Loan Forgiveness
In a stunning reversal on Thursday, the Education Department changed its position on FFEL eligibility for student loan forgiveness.
“As of Sept. 29, 2022, borrowers with federal student loans not held by ED [the U.S. Department of Education] cannot obtain one-time debt relief by consolidating those loans into Direct Loans,” wrote the Education Department in updated guidance published on its website.
The Education Department clarified that, “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,” ensuring that borrowers who already took steps to consolidate are effectively grandfathered in.
And borrowers who have already consolidated their FFEL loans could also still potentially qualify for relief. In addition to Direct consolidation loans comprised of loans that were held by the Education Department, “Consolidation loans comprised of any FFEL or Perkins loans not held by [the Education Department] are also eligible, as long as the borrower applied for consolidation before Sept. 29, 2022,” according to the new guidance.
But other borrowers may be out of luck.
Advocacy organizations for student loan borrowers slammed FFEL lenders following the announcement. “FFEL lenders have shown their true colors,” said the Student Borrower Protection Center in a tweet on Thursday. “Instead of working in the interest of student loan borrowers – their customers – these lenders are holding hostage relief from millions in order to keep making a buck off of suffering.”
Biden Administration Concerned About Lawsuits To Block Student Loan Forgiveness
The Biden administration’s reversal seems to stem from concerns that commercial FFEL lenders may proceed with litigation to block the new student loan forgiveness plans. FFEL lenders could have their federal student loan portfolios severely reduced if hundreds of thousands of borrowers consolidate into the Direct loan program to get the new student loan forgiveness benefits.
The Education Department indicated that the administration 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.” But nothing is guaranteed at this juncture.
Earlier this week, a conservative legal organization filed a lawsuit intended to block the new student loan forgiveness program. And today, six Republican-led states announced they would be suing the Biden over the plan, arguing the administration exceeded its authority.
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The democrats are very deceptive but expect these niggaz to deflect back to Trump.
The Three Amigos of Republicooning have started early with their circle jerking coonery.... beating themselves off into a coma
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The sad part is people like @fonzerrillii were hoping this would happen so that he could cash in on the financial plight of the people affected.
You see the shills are absent because they know their hero Biden has finally proven he is the worst US President of the last 40 years.
How many lies has Biden told? We know he can’t remember so maybe you doThe Three Amigos of Republicooning have started early with their circle jerking coonery.... beating themselves off into a coma
.
This shows how much power the Banksters have over Government.
They more concerned about losing money than helping people.
They more concerned about losing money than helping people.
I'd say a 10,000th of the lies that your daddy Trump has.... easilyHow many lies has Biden told? We know he can’t remember so maybe you do
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