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In a reversal, the Education Department is now excluding some borrowers from student loan relief - CNBC

In a reversal, the Education Department is now excluding some borrowers from student loan relief - CNBC

In a reversal, the Education Department is now excluding some borrowers from student loan relief - CNBC
Sep 29, 2022 41 secs

Department of Education will no longer be able to consolidate in order to qualify for President Joe Biden's student loan forgiveness program, according new guidance from the department.

However, the plan announcement immediately raised questions as to whether borrowers with Federal Family Education Loan Program, or FFEL, loans not held by the government would also be eligible.

In an update to its website, the Education Department now states, "Consolidation loans comprised of any FFEL or Perkins loans not held by ED are also eligible, as long as the borrower applied for consolidation before Sept.

The Education Department 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 website states


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