ED Releases Update on Biden’s Student Debt Relief Plan
The Department of Education (ED) released an update on the Biden-Harris administration’s student debt relief plan.
The update lays out eligibility requirements, what borrowers may be eligible for,
how the process will work and what to expect next.
ED points the public to its extensive Frequently Asked Questions
(FAQs) section regarding the plan. If questions are not addressed in the FAQs,
one of the FAQs, titled “How do I get help if I have questions or need assistance?”
has a number to call for additional information. Borrowers can sign up for future updates, including notification when the application
for student debt relief is released.
Finally, Federal Family Education Loan (FFEL) Program loans and Perkins loans were
initially eligible for the student debt relief plan, but in a surprise move, on
Sept. 30, ED made a change to the eligibility requirements. This change is reflected
in the FAQs, under the question, “Are Federal Family Education Loan (FFEL) Program
loans or Perkins Loans eligible for debt relief?” According to ED, as of Sept.
29, borrowers with federal student loans not held by ED cannot
obtain one-time debt relief by consolidating those loans into Direct Loans. Borrowers
with FFEL Program loans and Perkins Loans not held by ED who have applied to consolidate
into the Direct Loan program prior to Sept. 29, 2022, are eligible for one-time
debt relief through the Direct Loan program.
ED made the change in an effort to protect the plan from legal challenges.