Some borrowers will no longer be eligible for student loan relief after Education Department reversal




  • In Politics
  • 2022-09-30 02:46:51Z
  • By NBC News
 

The Education Department has quietly revised its guidance about which loans are eligible for President Joe Biden's student debt relief program.

In a reversal, new guidelines published to the department's website say that as of Thursday, borrowers with federal student loans not held by the Education Department "cannot obtain one-time debt relief by consolidating those loans into Direct Loans."

Before the revision, the Education Department had said borrowers who consolidated privately held federal student debt into direct loans could qualify for forgiveness.

It was not immediately clear how many borrowers the change will affect. NBC News has asked the Education Department for comment.

The unannounced change came the same day officials from six Republican-led states sued to block the Biden administration from going forward with its student loan debt relief plan.

The nonpartisan Congressional Budget Office released an estimate this week saying Biden's plan to forgive $10,000 in federal student debt for many borrowers would cost the government about $400 billion, fueling further criticism of the proposal by Republicans just weeks before the November midterm elections. An estimate from the Education Department on Thursday put the cost at an average of $30 billion annually over the next decade and $379 billion over the life of the program, which it said would last more than three decades.

Biden in August announced his student loan debt relief plan, in which borrowers earning less than $125,000 a year, or $250,000 for couples who file taxes jointly, would be eligible for up to $10,000 in debt cancellation. Pell Grant recipients, who make up the majority of borrowers, would be eligible for an additional $10,000 in debt relief. The overall plan is expected to help more than 40 million borrowers.

After Biden revealed his plan, guidance on the Education Department website said officials were assessing whether the relief would extend to borrowers with privately owned federal student loans, including Federal Family Education Loans and Perkins Loans, and that "in the meantime, borrowers with privately held federal student loans can receive this relief by consolidating these loans into the Direct Loan program." No immediate deadline for consolidating was specified.

On Thursday, however, the website said that only borrowers who had applied for consolidation of family education loans or Perkins loans into the direct loan program "prior to Sept. 29, 2022," would be eligible for debt relief.

There still is no date for when a government website will be live for all eligible borrowers to file claims.

This article was originally published on NBCNews.com

COMMENTS

More Related News

Germany welcomes Biden comments in trade dispute
Germany welcomes Biden comments in trade dispute
  • US
  • 2022-12-02 12:47:19Z

Germany on Friday welcomed President Joe Biden's apparent willingness to discuss tweaking U.S. legislation that European leaders say unfairly discriminates...

Ukraine Latest: Kremlin Says War to Go On, Remains Open to Talks
Ukraine Latest: Kremlin Says War to Go On, Remains Open to Talks
  • World
  • 2022-12-02 12:27:56Z

(Bloomberg) -- Vladimir Putin's administration said he remains open to negotiations after President Joe Biden raised the prospect of talks if the Russian...

Biden Has Backstabbed Rail Workers and Betrayed Union Allies
Biden Has Backstabbed Rail Workers and Betrayed Union Allies

Photo Illustration by Elizabeth Brockway/The Daily Beast/GettyJoe Biden has long bragged of being a "pro-labor" president. A few weeks ago, Democrats told...

To boost Georgia
To boost Georgia's Warnock, Biden heads to Massachusetts
  • US
  • 2022-12-02 05:07:48Z

To help Democrats win their 51st Senate seat in a Georgia runoff election, President Joe Biden is headed to ... Massachusetts? Days before polls close on...

White House sparks primary firestorm by pushing South Carolina for top spot
White House sparks primary firestorm by pushing South Carolina for top spot

President Joe Biden is recommending that South Carolina kick off the 2024 presidential nominating contest, a move that immediately sparked internal divisions...

Leave a Comment

Your email address will not be published. Required fields are marked with *

Cancel reply

Comments

  • Bon Leofen
    (2022-09-30 10:19:55Z)

    The majority of the finest websites enable users to ask questions and instantly respond with an answer (or a number of options) and an explanation. Sometimes, rather than typing out the entire homework or problem, you can even submit a picture of it!

    More than just assistance with homework questions take my economics exam is available on homework help websites. Expert Q&A, educational films, lectures, practise exams, quizzes, learning modules, math problem-solving tools, and proofreading assistance are among the often offered services. Along with textbook solutions, one-on-one tutoring, and peer-to-peer discussion forums,economics homework help websites can also offer textbook solutions (that is, answers to problems in a variety of textbooks that your school may be using).

    REPLY

Top News: Politics