![]() That's why the Education Department quietly implemented the reversal on FFEL guidance the same day that lawsuit was filed, effectively undermining a key argument in the Republicans' defense. All we hear is, 'well, we're working on it.' They should be doing more." A lawsuit brought by 6 GOP states led to the reversalīiden's student-loan forgiveness plan has been a target of criticism from conservative groups, and in late September, six Republican-led states filed a lawsuit arguing that the debt relief would hurt their states' tax revenues - along with the banks who could stand to profit from FFEL loans. He's one of the 770,000 borrowers impacted by this decision, according to an administration official, and while the Education Department has said it will continue looking for other ways to help that group of FFEL borrowers, it adds on to the track record of FFEL borrowers being excluded from federal benefits just because they took out loans at the wrong time - before Congress officially shuttered the program in 2010. "That could've been $10,000 I didn't have to pay, and now that's gone." "All of a sudden, it got yanked away," Cabreira said. While borrowers with those loans initially had the option to consolidate their debt into the direct federal loan, the September guidance stated that past that date, FFEL borrowers cannot consolidate, and therefore, will not be eligible for Biden's one-time student-debt relief.Ĭabreira said he wasn't immediately aware of the reversal, but he found out a few days later when he called his student-loan company to confirm that he still qualified and was told that he was not eligible for debt relief. Cabreira's student loans are federal loans managed by private banks within the Federal Family Education Loan (FFEL) program. "I immediately looked into it to see if I qualified, and it looked like I did."īut a decision the Education Department made on September 29 dashed all of his plans. He would be able to pay off his debt quicker with lower monthly payments, and it even could have given him the flexibility to financially assist his parents. Kristopher Cabreira was looking forward to the relief $10,000 in student-loan forgiveness would bring.Īfter President Joe Biden announced $10,000 in student-debt relief for federal borrowers making under $125,000 a year at the end of August, Cabreira, 46, immediately started thinking about what that reduction to his $43,000 balance would mean. While FFEL loans initially qualified, Biden reversed the guidance on September 29.Ĭabreira is among the 770,000 other borrowers who got the relief "yanked away" from them. ![]() ![]() Kristopher Cabreira doesn't qualify for Biden's student-debt relief because he has FFEL loans.
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