The Department of Education has "silently" changed the rules to student loan forgiveness that will affect at least 800,000 borrowers. On September 29, 2022 the Department of Education made a few changes for those who obtained the Perkin's and Federal Family Education loan. Here is the language directly from the Dept of Education "As of September 29, 2022 borrowers with federal student loans not held by ED cannot obtain one time debt relief by consolidating those loans into direct loans". Previously individuals who did obtain theses loans were able to receive loan forgiveness.
Many speculate that potential lawsuits could be the reason why the Dept of Ed has changed it's language recently. Long story short the banks who insured these loans will not receive any form of payment if FFEL loans are forgiven. Hence why they are willing to sue to recoup any lost funds. While direct loans do qualify for cancellation this leaves millions of borrowers who have FFEL loans at a lost. If you were able to consolidate your loans before September 29 then you will continue to qualify for student loan forgiveness.
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