Biden's Loan Forgiveness Is Getting Challenged

The legality of forgiving 10k in student loans is being challenged in court by multiple lawsuits.

What Forgiveness Was

When first announced everyone with Federal student loans was going to get 10k or 20k in forgiveness. That is causing legal problems.

The Problem

FFEL loans are held by private lenders and guaranteed by the government.  In order for them to qualify, the government told borrowers to consolidate to Direct student loans.

States Revenue

Also, many states rely on student loan revenue to fund new student loans for new borrowers.  Forgiveness messes up their revenue projections and budgets

Biden's Solution

To deal with lawsuits, the Biden Administration quietly changed who can get loans forgiven.

The Result

FFEL loans are no longer going to qualify to get student loan forgiveness regardless if you consolidate now or not!

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