Saturday, October 1, 2022

'Just Kidding': Biden Yanks Student Loan Forgiveness From 770,000 Borrowers

 In a jarring reversal, the U.S. Department of Education quietly revised its online guidance on who qualifies for the $10,000 of student loan forgiveness that President Biden announced in August

  • In doing so, it pulled the rug out from under at least several hundred thousand people
  • At issue: Borrowers who have Perkins loans and Federal Family Education Loans (FFEL).
  • Those earlier-generation loans were issued and are managed by private lenders.

The @FAFSA just updated their website to say that ffel borrowers who didn't consolidate before 9/29 aren't eligible for debt relief.

  • As recently as yesterday the site said they were working on a solution for these borrowers. This is a gut punch to say the least...

Bottom Line

  • Biden's loan forgiveness proclamation was in keeping with a 2020 campaign pledge, and the announcement was clearly timed to maximize its impact on the midterm election.
  • The estimated cost of the debt forgiveness scheme has already soared in just the first month after it was announced. The Congressional Budget Office says it will cost at least $400 billion over three decades, far above earlier estimates of $300 billion.

https://www.zerohedge.com/political/psyche-biden-yanks-student-loan-forgiveness-770000-borrowers

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