After millions celebrated the announcement of federal student loan forgiveness, some are now having that excitement taken away from them.
In a change published Thursday, the Federal Student Aid website states that public student loans not held by the Department of Education such as Federal Family Education Loan (FFEL) or Perkins Loans aren’t eligible to receive one-time forgiveness.
Here’s what you need to know.
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Select student loan borrowers excluded from forgiveness
Up until today, those with FFEL and Perkins loans had the opportunity to consolidate their student loans into Direct Loans owned and serviced by the Department of Education. In an abrupt decision, those borrowers who didn’t consolidate may no longer be eligible for student loan forgiveness.
It’s likely this decision stems from two legal challenges filed in court against the Biden administration’s federal student loan forgiveness initiative. Both focus on one …