The Biden administration and the Department of Education rolled back some of its student debt relief program Thursday as some Republican states have issued legal challenges to the program.
Borrowers with privately held federal student loans no longer will be able to receive loan forgiveness under the updated plan. Several million of the 45 million Americans who owe federal student loans fall into this category, according to Politico.
Private lenders and other companies that participate in the program are seen as the greatest legal threat to the program.
Some legal experts told NPR that the reversal in policy was likely made out of concern that the private banks that manage old FFEL loans could potentially file lawsuits to stop the debt relief, arguing that Biden’s plan would cause them financial harm.
Related Story: In Reversal, Biden’s Education Dept. Excludes Many From Student Debt Relief
The Department of Education said that borrowers who already have taken steps to receive loan forgiveness can still get it, but other borrowers who have not begun the process will not be eligible.
“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.
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It pays to be first in line to stick your snout into the government trough.
TILL you run out of other people’s money.
I think they will all be withdrawn as soon as a court rules that a president doesn’t have the power to do this. Biden knew this from the start. He was just buying votes.
BUT will that ruling, be BEFORE the nov elections, or AFTER, when the buying of votes, ALREADY HELPED?