Education Department says that a subset of federal student loans owned by private lenders no longer qualify for relief.
By Michael Stratford, Politico
The Biden administration is scaling back its debt relief program for millions of Americans over concerns about legal challenges from the student loan industry as well as a new lawsuit from Republican-led states.
In a reversal, the Education Department said on Thursday it would no longer allow borrowers who have federal student loans that are owned by private entities to qualify for the relief program. The administration had previously said those borrowers would have a path to receive up to $10,000 or $20,000 of loan forgiveness.
The policy change comes as the Biden administration this week faces its first major legal challenges to the loan forgiveness program, which Republicans have railed against as an illegal use of executive power that is too costly for taxpayers.
Recent Posts
An Important But Limited Win Against Data Centers in Pennsylvania
Take Action Now The order removes all AI data center proposals from the state’s fast-track permitting process and prohibits the use of nondisclosure…
‘Lawless Killing Spree at Sea Resumes’ as U.S. Announces Fresh Boat Bombings
Take Action Now With the latest two casualties, the Trump administration’s boat bombing spree has now claimed the lives of at least 223 people.…
How Jared Kushner Snookered Hakeem Jeffries
Take Action Now Democrats need a fighter, but the congressional leader is addicted to illusory comity.Jeet Heer, The Nation On Sunday, The New…
DOJ Whistleblower Confirms “Antisemitism” Probes Against Universities Were Sham Investigations
Take Action NowBy Democracy Now! Haley Van Erem, a former career attorney in the Justice Department’s Civil Rights Division, has filed a…