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Biden Won’t Forgive Privately Held Federal Loans

Inside Higher Ed

Katherine Knott
September 30, 2022
In another development, six states sue the Biden administration over the loan-forgiveness plan.
In a move that could affect millions of people, federal student loans not held by the U.S. Department of Education will no longer be eligible for debt relief, the department quietly announced Thursday.
When President Biden last month announced plans to forgive up to $20,000 in federal student loans for eligible Americans, the department didn’t definitively say whether privately held federal student loans would be included in the plan but said that it was discussing the issue with private lenders. Now, those borrowers have an answer: their loans will not be forgiven.
“ED 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,” the department wrote in its updated FAQ about the debt-relief plan.

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