Student Loan Relief For 1 Million More Borrowers — After Biden Cancels

Congratulations to 1 million more borrowers who will get student loan relief. Here’s what you need to know. In response to the Covid-19 pandemic, President Joe Biden will provide student loan relief to another 1.1 million student loan borrowers. This is Biden’s third student loan announcement in recent weeks, and comes after Biden already enacted $2.3 billion of student loan cancellation. Now, Biden will help student loan borrowers with FFELP Loans who have defaulted on their student loans. These borrowers will be granted similar student loan relief from the Cares Act, the $2.2 trillion stimulus package that provides several protections for federal student loan borrowers through September 30, 2021, including:Previously, only borrowers with federal student loans that are owned by the U. S. Department of Education were eligible for such student loan relief. Further, the new stimulus package — the American Rescue Plan of 2021 — didn’t prevent creditors from taking your stimulus check to pay off debt. Therefore, most FFELP (Federal Family Education Loan Program) Loans have been excluded from student loan relief since early 2020. Why? While FFELP Loans are considered federal student loans, they were issued prior to 2010 by financial institutions and most of these student loans are owned by banks and private investors (not the federal government).“At a time when many student loan borrowers have faced economic uncertainty, we’re ensuring that relief already provided to borrowers of loans held by the [U. S. Department of Education] is available to more borrowers who need the same help so they can focus on meeting their basic needs,” U. S. Secretary of Education Miguel Cardona said. “Our goal is to enable these borrowers who are struggling in default to get the same protections previously made available to tens of millions of other borrowers to help weather the uncertainty of the pandemic.”Not everyone will qualify for this student loan relief, however. First, you must have a FFELP student loan. Second, your FFELP student loan must be in default. Importantly, while 1 million student loan borrowers qualify, the latest student loan debt statistics show that there are approximately 11 million student loan borrowers who collectively owe $246 billion of FFELP student loans. This means that nearly 10 million student loan borrowers who have FFELP student loans won’t get any student loan relief. Why? Answer: their FFELP student loans are not in student loan default. America has shared different reactions to student loan cancellation and student loan relief. For example, critics of this student loan relief plan say not enough student loan borrowers will be helped, and this only amounts to partial student loan relief. Last year, to address this same issue, Rep.

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