List of Student Loans Eligible for Shortened Single Forgiveness

If your FFEL program loan has gone commercial, it is not included in President Joe Biden’s Single Federal Student Loan for

INDIANAPOLIS — People who meet certain income requirements are eligible for up to $20,000 in one-time federal student loan forgiveness.

But the list of eligible loans is a bit shorter after a recent announcement.

If someone wanted to take out a federal student loan more than a decade ago, one option was the FFEL program, which stands for Federal Family Education Loan.

But this type of loan disappeared during the 2009-2010 academic year to make way for direct loans.

When this happened, existing FFEL program loans remained federal or became commercial. If it has gone commercial, it is not included in President Joe Biden’s one-time federal student loan waiver.

If you’ve been on the COVID interest-free payment break the whole time, your FFEL is more than likely federal.

If you had to make payments at some point, it’s probably business.

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Nerdwallet’s Cecilia Clark said you can also call your repairman.

“We’re still hoping that maybe there will be a solution for these borrowers. Because again, it’s not something they signed up for. They didn’t take out private loans. They took out federal loans,” Clark said. said.

However, if you requested to consolidate your FFEL into a direct loan before September 29, 2022, this should be included in the discount.

“When you consolidate your federal loans, what you’re basically doing is taking a bunch of loans, and with a bunch of different payments, and potentially a bunch of different services, and you’re just consolidating them into one only loan that will have a payment and a servicer,” Clark said.

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Clark added that loan consolidation can have drawbacks.

“If you already have cash payments for specific forgiveness plans, consolidation could mess that up. So before consolidating, it’s really important to look at your own individual situation and make sure that restructuring those loans under consolidation federal will not spoil anything that you previously set in motion,” she said.

James V. Hayes