The Biden administration quietly changed the criteria for people to qualify for student loan forgiveness and now many more won’t qualify for Biden’s largess.
After taking much criticism for putting the country billions more in debt for his faux “forgiveness” scheme, it looks like the administration is trying to back out a bit to lessen the burden on the taxpayer.
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 cannot obtain one-time debt relief by consolidating those loans into Direct Loans.”
The move is meant to force banks that aren’t much into Biden’s scheme not to oppose the policy when the time comes by taking out a large number of borrowers from the pool of those who qualify to dump their loans.
We will have to see if the ruse works to shore up support for Biden’s absurd ploy.Commentary