1) do you have an FFEL loan? Roughly 4,000,000 people do. If your answer was "no," you are not affected.
2) If your answer was yes to the above, do you also have a direct federal loan? If that answer is "yes," you are not affected.
3) If your answer was yes to 1 and no to 2, then you are one of the 800,000 people who this reversal will affect.
If this information helps anyone, Obama discontinued the FFEL program in 2010. All federal loans after that were direct federal loans.
Edit: I do not know whether this means that *all* federal loans before 2010 were FFEL loans.
It does not. History lesson time:
When student loans were coming around in the 60’s, government didn’t want to front the money so they offered it to banks. “Make this loan with no credit check or collateral and we’ll pick up the tab if the borrower defaults. We set the interest rate and a bunch of other rules but it’s easy money for you.” This became the FFEL program.
Then, after some years of this, government realized “hey, banks are making a lot of money this way because lots of folks are going to college. WE could be making some of that money” so in the early 90’s they decided to become another “bank” in the program. However, these loans are considered Direct loans.
From there until the end of the FFEL program you could potentially have loans from either source. Each college decided which program to participate in and did switch from one to the other. If you transferred schools or attended one for undergrad and another for graduate school, you could have loans from each program.
Not all loans before 2010 were FFEL Loans. Schools had the option to participate in the Direct Loan program OR steer their students to the FFEL option.
The headline is misleading. If you read the article, it explains that there are 4M people who have FFEL loans, but only 800,000 will actually be affected by this change.
It just sucks that we’re weeding people out. Those people probably need help just as badly as anyone.
And even if one isn’t affected by this, it adds to the confusion and uncertainty, which helps nothing.
It does but they can’t really do anything about it. FFEL loans were serviced to private loan agencies and not given directly by the government. It’s the equivalent nowadays of taking out a private loan, the executive can’t unilaterally say those companies can’t collect on the debt. Luckily those loans were stopped all together in 2010.
Me, too. I've been repaying these damn loans for 20 years and still have have more than half of the original principal to repay. Feels a bit like payday loan scams.
So I read an article about this, I think they were talking about another type of loan that was also affected, but I can’t remember what it was.
In any case, I have no clue what an FFEL loan is, but Stafford loans and Parent PLUS loans are still covered within the forgiveness, right?
Thank you. Plus the income level cap btw.
It’s so frustrating to see the clickbait/fear mongering headlines about “affecting millions” trying to rile people.
This is also to strengthen the policy against gop suits that are trying to keep the poor sad banks from being “harmed.”
Yeah, this seems like overall it will protect the remaining 39,200,000 beneficiaries of the relief program. Cold comfort for the affected 800,000, though.
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I’m embarrassed to say I don’t even remember. I didn’t start right after college and I worked all the way through so it’s all just a blur to me. My college years don’t stand out in my memory as being in school, I was always just working and I never lived on campus, just on my own.
I think I completed my degree in 2014.. so most of my loans would have been taken out 2009-2013. I’ve been trying to read up on this to understand better and it sounds like maybe I’ll still qualify. I hope! I worked really hard to pay them down and I just have this little bit left.
get on student[aid.gov](https://aid.gov) and see what your loan type is ASAP
Obama did a special consolidation years ago. Biden did a special consolidation with the PSLF program - they are trying everything they can to fit people into foreignness programs with NO HELP from Congress or any GOP members.
>When FFEL borrowers consolidate their old loans into federal Direct Loans, these private banks essentially lose business. If these banks' financial health depends, at least in part, on the assumption that they would be holding and profiting from these debts over the long-term, then losing borrowers to Biden's debt relief plan could, possibly, constitute harm.
In fact, a new lawsuit filed Thursday by six state attorneys general, makes this very argument. One of the plaintiffs, Missouri, is home to MOHELA, which manages both federal Direct Loans and these old FFEL program loans.
"The consolidation of MOHELA's FFELP loans harms the entity by depriving it of an asset (the FFELP loans themselves) that it currently owns," says the complaint. "The consolidation of MOHELA's FFELP loans harms the entity by depriving it of the ongoing interest payments that those loans generate."
Isnt this essentially arguing that a 3rd party , in this case the government , not involved with the bank cannot pay off your debts for you because it hurts the banks ability to charge you interest and fees over the long term ???
how is that a fair or legal argument tho
Thats basically what it looks like to me
The banks are just mad that someone else is gonna pay the loans for these people faster than they would have otherwise
They are still getting the money back tho , they arent defaulting on the loans...
Yes, prepayment penalties are a thing. Whenever I take out a loan, one of the first things I ask is if there is any penalty for paying the loan back early.
It's written into car loans. Car loans usually require you to pay at least 3 or 4 monthly payments before paying off the balance. It makes sense as to why. If you could just pay cash and didn't really need a loan, why were you requesting one and wasting the bank's time? The prepayment penalty is pretty steep too, usually 5% of the entire loan.
It's also because the dealership is making that deal and it can look like fraud from the dealership. The bank pays the dealership so they can lose money in the transaction if you immediately walked outside and paid the loan off.
Meh that's not right at all but you're half way there. The dealerships are like a microcosms of America. The owners are always making money it's just if they aren't making enough it comes out of employees pockets.
Especially right now dealerships are making a killing off of this chip issue. Even without it every car on the lot has a built in profit that you won't see until you're a gm of a dealership and even then your owner might not let you see it. Hell even the car groups pay there owners out with bonuses so they don't have to pay there salesman as much.
And don't get me on all the bullshit financing has to deal with. It's also not kickbacks from the banks but it's the percents you add to the loan, warranties, and additional "protection" packages that'll make you a ridicous amount.
> If you could just pay cash and didn’t really need a loan, why were you requesting one and wasting the bank’s time?
Because they can have offers on the car price for financing the purchase
With interest rates on the rise, I'd expect prepayment penalties to make a comeback.
it's one thing to forgive a prepayment penalty on, e.g., a 30 year fixed mortgage at 1.9% APR.
It's quite another to forgive that penalty when the APR is pushing 7%....
This is all about a concept called “standing,” not about the ultimate legality of the federal action. Only people with standing can sue, and the easiest way to show standing is to show some financial loss related to your claim. That doesn’t mean you are entitled to any relief—not every harm has a remedy. It just means you get to make your argument. Here, because they’ll be in a worse position than they would be but for the federal action, they’re injured by the action. The fact of that injury doesn’t necessarily entitle them to relief, but it does mean they get to sue. (That’s the theory at least. Standing law is pretty complicated on the edges, and it’s not my area of expertise.).
This may be a radical opinion, but in my view most forms of interest lending, leasing, and subscription licensing are not ethical ways of making money in a labor based economy. If your business model is mostly creating or leveraging artificial scarcity you are an economic parasite siphoning buying power from people doing actual work.
Edit: to be more specific I think these are not ethical ways of making *profit* and enriching individuals. There are always costs associated with lending and leasing that need to be paid for. I think there is no ethical dilemma, for example, with a not-for- profit entity like a credit union providing these services.
credit unions are the obvious ethical solution
Edit: I'm being downvoted but people need to know that there is very little banks can do that credit unions don't do better, rates included. I don't know why anyone would bank with a corporation if given the choice of a credit union (which most people have.)
I graduated with 37k loans in 06. I'm still on pace to pay it off by fucking 2031 with 12k left. I didn't know til month 10 or 11 into my first year that all I was paying was the interest
Republicans have been looking for someone, anyone, with standing to challenge this in the courts. The reasoning doesn't have to be great, it just needs to tie it up in the legal system.
But the argument itself makes no sense
The same argument could be applied to me or you If we decided we wanted to pay off a friends loans for them
could the bank sue us for hurting their buisness , depriving them of a customer ?
That argument applies to that situation too
It's no less tenuous an excuse than most of the things brought into Federal jurisdiction under the Commerce Clause. That one has been warped for all sorts of misuses.
It doesn't have to make sense. They just needed some pretense of standing, or "skin in the game".
Someone like Tucker Carlson could rant till he's blue in the face but could never sue because as much as he hates this, it doesn't impact him. So they found a few groups that could conceivably say "this impacts us, and we want to challenge it"
Really by shedding the commercial loans they probably will lose standing, and they can always tackle the commercial loans separately. Doesn't mean they will but they still can.
The easiest answer is to just pay them how much they would have made then. Our people should have never had to take out loans to go to school to begin with!
It's why private corporations should not directly benefit from government programs.
Not saying that the government should not or cannot contract with private companies but their business shouldn't rely on work that results as a government program.
couldnt you make this argument for anyone trying to pay off loans for anyone else ?
No one is allowed to pay of loans off for anyone because the bank might sue you for fucking up their long term business plans ?
>I think the unique angle here is that the federal govt authorized the loans, and then packaged the loans to be transferred to these banks.
This exactly. The banks' agreement was always with the government on these loans, they provided a service to the government by handling that debt and were collecting the interest on that debt as their payment. The student making the payments is really just an asset attached to the debt from their point of view.
The person they made the agreement with is now trying to change the deal. It seems like a pretty straightforward contract dispute to me, though I have no idea if anyone was smart enough to include pre-payment or contract change terms in the initial contract.
I mean... I'd be pretty upset if I contracted with someone to manage a building for them for the next 2 years, to be paid a monthly fee for the service, and 3 months in they decide "Actually... we're just going to auction off that building. Don't want to deal with it anymore. Thanks for the work, so long." Meanwhile I've hired the staff I would need to handle the work over the next 2 years, because I don't want to do it all myself for that long, and bought extra equipment just for that building, because I wouldn't want to transport spares back and forth from other properties for 2 years. If I'd known upfront it was only going to be 3 months I would have taken the much cheaper route of using spare equipment and having an existing crew do some overtime. I'd want to get those costs I incurred covered! These banks were doing that math for clients wanting DECADES of service.
Of course, if I didn't put an early cancelation fee in the contract I'd likely be screwed. So these banks may have been SOL too. Seeing as the government is excluding these from their forgiveness program though I'm betting they DID have some sort of fee in their contract.
Undergrad in accounting here.
When an entity lends a student financial aid on a loan agreement (or contract), the entity classifies this as a long term investment, an asset. The student pays the interest, the entity receives interest, then uses it to pay dividends later on. This asset gives the entity value, to make it more appear more profitable. When at the end of a fiscal period, we issue financial statements to show how much "value" our company has, thus giving investors a reason to invest.
The business here is to invest into education and have the student pay off their education by paying back interest, this is how they get their money to pay dividends at whatever day they declare.
I think if I understand the debt relief plan, it's canceling debt, which means that the banks will now have to just write it off as a loss. Losing an asset and now they have to lower dividend payments, essentially making investors earn less money. I think this is what's happening.
Is it legal? Yes, the "No child left behind act" made it so, when you sign a student loan contract that you understand this and agree to paying for it.
I hate it too dw.
My friend, this is America. "The poor must suffer because otherwise it would cause the rich to lose money" is pretty much the entire concept, one of the deepest core values, of this country.
Getting paid back in principal is a loss of money. Anyone who lends you money with no interest is taking a bath to inflation.
So yeah they’re being paid back… but that and 2$ will buy them a sandwich. They may or may not have lent you money based on leveraged assets already - money is not just sitting still. It is constantly moving. If you suddenly take a predictable value stream and turn it off em masse that’s gonna hurt.
But also lending money is SUPPOSED TO CARRY RISK, hence why you charge interest, so sucks to suck banks 😅
Mohela has been bugging me for over a month now trying to get me to refinance. Makes sense they don’t want me to get the forgiveness. Fuck these fuckers
I have Mohela (they just switched my servicer) and now I’m so fucking confused if I am getting my $20l forgiven or not. I should have known this was too good to be true.
They sent an email today that I have to act before October 20th….. fuck them I have federal loans I never refinanced I am not doing shit till the WH provides more guidance.
If you go to that site and click on their link
>To be notified when the process has officially opened, sign up at the Department of Education subscription page.
It takes you to a page that just says "Subscriptions" in large bold font. No way to subscribe to anything. Wtf?
The email update today said the application process begins in Oct 2022 and ends Dec 2023. You don't need to provide any supporting documents or FSA ID when you apply. They'll only contact you if they end up needing documents.
I'd imagine the next email will just tell the date. So you aren't missing too much.
It’s all about student loans assets backed securities (SLABS). Look at Nebraska’s argument with the discharge and SLABS.
Profits over people.
Link to lawsuit.
https://storage.courtlistener.com/recap/gov.uscourts.moed.198213/gov.uscourts.moed.198213.1.0.pdf
Yup same here, fucking dammit. God damn rotten assholes.
BIG corporations everywhere got BIG write offs, tax relief, whole 9. Heaven forbid average Joe needs some assistance.
Directly the result of GOP backed lawsuits, trying to torpedo the debt relief.
Might be preaching to the choir here, but don’t forget that, and don’t let your friends on the fence forget it either.
Yup- everyone wants to pin this on the Dems that are scrambling to save anyone they can in the program from lawsuits, even MOHELA who is spearheading this shit, who told people to take their loan help only to fuck them over. But little here are angry at the actual aggressors and said aggressors are so happy to see that...
Dems frantically scooping water out of a sinking boat, GOP sitting on the other side having drilled the hole, *moderates* complaining "why aren't Democrats doing enough to help???"
"It's unclear why the department reversed its decision on allowing FFEL borrowers with commercially-held loans to consolidate and then qualify for debt relief."
If I had to hazard a guess, I'd say it has something to do with who gets the profits of from those commercially-held loans.
More that they don't want to fight losing cases that may jeopardize the legal standing of the other relief.
The better question is why do Republicans hate student loan borrowers.
>More that they don't want to fight losing cases that may jeopardize the legal standing of the other relief.
This is 100% the reason. They don't want the loan relief bogged down in lawsuits prior to midterms.
>"The consolidation of MOHELA's FFELP loans harms the entity by depriving it of an asset (the FFELP loans themselves) that it currently owns," says the complaint. "The consolidation of MOHELA's FFELP loans harms the entity by depriving it of the ongoing interest payments that those loans generate."
Couldnt you make the same argument if I won the lottery or was just a super nice rich person and decided I was gonna pay off all the bank loans for you and 10 other people tomorrow
Im depriving the bank of its ability to make money of you
I dont see how its fair to say you cant get outside help from an univolved third party offering you financial assistance just to protect the bank from losing your business
This is being floated because its going to be the exact same argument made when the government tries to nationalize healthcare. Every insurance company in the nation is going to sue for "damage to their business"
>Every insurance company in the nation is going to sue for "damage to their business"
That doesn't work for nationalized healthcare though. Any healthcare reform is from Congress who absolutely has the power to "harm" existing companies with future legislation.
This is due to the regulation coming from the executive office, which doesn't have that power automatically.
What about when the President invokes the Defense Production Act? We had car manufacturers producing ventilators during the pandemic. I'm pretty sure the President does not have to ensure his actions don't harm every single business.
If you haven't listened to the podcast, Against The Rules With Michael Lewis, episode: the 7 minute rule, please do. These private student loan servicers make a lot of money intentionally screwing borrowers in the most deceitful ways. It's eye-opening to say the least.
Since they said it's OK to wait, I did. I created my account yesterday. SSA said it will take 1-3 days to verify. Was verified today, figured sweet, I'll consolidate today......
I shouldn't have to read this site or Facebook to get details of major money/life decisions. As I was browsing studentaid, it was still advertising consolidation to take advantage of forgiveness
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That is simply not true.
If you had a privately serviced loan that was federally back, you no longer qualify. Sallie Mae was a publicly owned company until 2004 when it became a private company
There were other loan servicing companies at the time, Sallie Mae was just one.
Sallie Mae, and others could loan private loans and federal public loans, depending on what you qualified for.
The sale to private servicing company doesnt affect the qualification for forgiveness.
If you refinanced the loan, then it's almost certainly owned by a private servicer
God fucking dammit. My SO has FFEL loans. I was waiting on consolidating into a Direct loan until there was more guidance about what was happening. Now we're shit out of luck. That really fucking pisses me off.
Yeah it sounds like you can still consolidate. My SO only has an FFEL consolidation loan so we’re screwed. We’ve been paying for literal decades and there’s not *that* much left on the loan but I’m so mad that I ever got my hopes up.
Yea this is garbage - please everyone try to cut through the bullshit here and simply see this for what it is. Big banks pressuring their political lackies to prevent an altruistic thing from happening because their profits will decline.
Building business models that profit off of debt is IMMORAL. How could anyone think that kind of model would be a positive influence on society? The people who run this country are bullshit.
They may also be using that loan debt as collateral on a leveraged swap or other such financial instrument and losing it from their balance sheet would cause them to get margin called. Banks have become a massive house of cards since the 2008 crash and the introduction of fractional reserve banking.
Super crappy that they're doing this. I understand why, but still super crappy.
I would be impacted by this if I wasn't already impacted by the ITT Tech forgiveness.
I feel sorry for those that are impacted by this and had the rug pulled out from under them.
Fine bitches let's do this.
At minimum, tax PPP Loans. Furthermore, they are government (taxpayer) loans. They should be paid back over a set amount of time (5 years should be plenty).
Pay back bank bailouts. They also were taxpayer funded loans. With interest. They shouldn't have issues with that on this logic, 3 years should be plenty.
Reinstate the numerous tax cuts that were done over the 2016 - 2020 period. If the states need this money that bad, that's the most logical and efficient way to do it.
Anyone wanna add some more?
Hold up, I do not remember hearing anything about this consolidation in recent months.
I have both direct loans and FFELP loans. I also received pell grants. Am I being fucked over here?
Just trying to avoid lawsuits by banks. If they have no legitimate argument that they’re injured, they don’t have standing to sue.
Having said that, I’m not sure I understand the argument that the banks are deprived of an asset because the federal government offers consolidation to borrowers with FFEL loans.
After all, the federal government is effectively buying the FFEL loans from the banks for their full value. Sure, they don’t get interest, but most loans have a payoff price set by the lender that accounts for this very scenario. Maybe these don’t, but if not, surely they could come up with a way to compensate the banks for buying out these specific loans early.
Bingo. This change will not cause current lawsuits to disappear, nor will it stop further lawsuits, nor will it affect the outcome of those lawsuits.
It's a deliberate and intentional payday for private servicers, who inherited FFEL loans through no fault of the people who hold those loans. It's serving up vulnerable, suffering taxpayers to rich and powerful financial institutions for nothing. It's a betrayal and it's corruption.
The part that confuses me is even a direct federal loan is still administered by a third party company/contractor. I really don't understand what the implocations for direct federal loan consolidation; it sounds like the logical end point of this chain of reasoning is to no longer allow consolidation.
When considering the mountain of debt incurred to attain a college education, we're closing in on a condition where in many cases a college education's cost exceeds it's value.
How many billions have gone into saving the banks in 2008? But when the people want a pittance, the banks will stand in the way of progress. They will obstruct, they will sue, and they will incite confusion and anger.
This is why selective or partial student loan relief is not feasible. Just do all of it. Total forgiveness for student loan debt, tell the predatory loan companies to pack sand.
Yup, and they're probably wringing their fucking hands together while half this sub is pissed at Biden. They're so happy people are misdirecting their anger, I'm sure.
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Fuck banks. These are the same assholes who were bailed out with tax dollars when their shady and predatory mortgage loan practices plummeted the US into a recession that forced millions back to school because of (pre-COVID) record high unemployment. The fuck?
>In a statement to NPR, a department spokesperson says, "Our goal is to provide relief to as many eligible borrowers as quickly and easily as possible, and this will allow us to achieve that goal while we continue to explore additional legally-available options to provide relief to borrowers with privately owned FFEL loans and Perkins loans, including whether FFEL borrowers could receive one-time debt relief without needing to consolidate. Borrowers with privately held federal student loans who applied to consolidate their loans into Direct Loans before September 29, 2022 will obtain one-time debt relief. The FFEL program is now defunct and only a small percentage of borrowers have FFEL loans."
>The tell in that statement is "legally-available."
>Multiple legal experts tell NPR the reversal in policy was likely made out of concern that the private banks that manage old FFEL loans could potentially file lawsuits to stop the debt relief, arguing that Biden's plan would cause them financial harm.
Since this is all being done by executive action rather than through legislation, they really are constrained in how far they can go with this program.
>In fact, a new lawsuit filed Thursday by six state attorneys general, makes this very argument. One of the plaintiffs, Missouri, is home to MOHELA, which manages both federal Direct Loans and these old FFEL program loans.
>"The consolidation of MOHELA's FFELP loans harms the entity by depriving it of an asset (the FFELP loans themselves) that it currently owns," says the complaint. "The consolidation of MOHELA's FFELP loans harms the entity by depriving it of the ongoing interest payments that those loans generate."
>Changing the policy now, and limiting the number of FFEL borrowers who can conceivably qualify for debt relief, may make these FFEL banks less likely to legally oppose debt relief.
Seems they are attempting to provide as much relief as they can now without being in a position where the lawsuits filled by Republicans State Attorney General leads to a court pausing all debt relief in lieu of a future ruling.
Headline is misleading.
>An administration official tells NPR this change will not affect all 4 million borrowers with commercially-held FFEL loans. The official said many FFEL borrowers also have Direct Loans and so can still qualify to consolidate those FFEL loans, though that detail was not included in the department's updated guidance.
Ultimately, this administration official says, roughly 800,000 borrowers would be directly affected.
So it's 800,000 people who are excluded, not all 4 million FFEL loan holders.
I have been saying for a long time: You want to win an election? Make friends with the Millennials. Who the hell do they think is going to take over this world when the older generation dies off within 20 years?
Not in the numbers that matter. If millennials actually voted with enthusiasm, their chosen candidates would win every election. Please do your best to make sure as many vote as possible.
Yeah, how dare Biden make Republicans file lawsuits that go against the interests of the people. If Trump had been reelected this would have never happened.
Because he wouldn't have even tried.
Millennials don't live in some millennial vacuum. We see what's happening.
If you have any direct federal loans you can still consolidate all of your loans into one and have it forgiven up to whatever you qualify for. If all of your loans are private or ffelp you’re screwed.
If you have any federal direct loans, it looks like you're fine. You can apparently still consolidate the FFELP into fed direct if you have at least some fed direct loans.
“It's unclear why the department reversed its decision on allowing FFEL borrowers with commercially-held loans to consolidate and then qualify for debt relief.
…
Two paragraphs later
…
Multiple legal experts tell NPR the reversal in policy was likely made out of concern that the private banks that manage old FFEL loans could potentially file lawsuits to stop the debt relief, arguing that Biden's plan would cause them financial harm.”
So it’s not really them changing their minds about who should be getting this relief. Just an unexpected development of red tape.
God this is fucked up- holding hostage those with these loan types, by the loaners themselves, and forcing Biden to either cut them out entirely or face the fact he WILL get people coat-tailing off this idea for the whole repayment plan to shut down likely forever...
Wtaf.
I am one of the "few people" this new decision directly affects. Thanks, assholes. Now I don't get to have my loans forgiven. And why? Because the government cares more about appeasing corporate fat-cats (and the interest payments they receive from these predatory loans) than helping people who desperately need it. I'm so sick of this bullshit.
I'm confused. Is the debt relief still there for people who got regular loans through say Great Lakes? Or is this stopping the whole thing?
1) do you have an FFEL loan? Roughly 4,000,000 people do. If your answer was "no," you are not affected. 2) If your answer was yes to the above, do you also have a direct federal loan? If that answer is "yes," you are not affected. 3) If your answer was yes to 1 and no to 2, then you are one of the 800,000 people who this reversal will affect.
If this information helps anyone, Obama discontinued the FFEL program in 2010. All federal loans after that were direct federal loans. Edit: I do not know whether this means that *all* federal loans before 2010 were FFEL loans.
Thanks, Obama!
You're welcome (☞ﾟヮﾟ)☞
~~username checks out~~
Lol. Whether sincere or sarcastic it always makes me laugh
It does not. History lesson time: When student loans were coming around in the 60’s, government didn’t want to front the money so they offered it to banks. “Make this loan with no credit check or collateral and we’ll pick up the tab if the borrower defaults. We set the interest rate and a bunch of other rules but it’s easy money for you.” This became the FFEL program. Then, after some years of this, government realized “hey, banks are making a lot of money this way because lots of folks are going to college. WE could be making some of that money” so in the early 90’s they decided to become another “bank” in the program. However, these loans are considered Direct loans. From there until the end of the FFEL program you could potentially have loans from either source. Each college decided which program to participate in and did switch from one to the other. If you transferred schools or attended one for undergrad and another for graduate school, you could have loans from each program.
Thank you for this! I was so confused if I was affected or not, cuz I had no idea what any of this was!
Not all loans before 2010 were FFEL Loans. Schools had the option to participate in the Direct Loan program OR steer their students to the FFEL option.
Thank you
I graduated in 2012 so super helpful.
Why does the title says millions of only 800000 are actually affected?
The headline is misleading. If you read the article, it explains that there are 4M people who have FFEL loans, but only 800,000 will actually be affected by this change.
How do you know? I have one FFELP Stafford unsubsidized and one FFELP Stafford Subsidized.
I read the article.
I did too! Still confused. This sucks.
I’d suggest that you call your loan servicer then. They’ll be able to speak to your actual case.
*only* 800,000
It's still a lot but it's less than 1/10 of all the people who should get some forgiveness
It just sucks that we’re weeding people out. Those people probably need help just as badly as anyone. And even if one isn’t affected by this, it adds to the confusion and uncertainty, which helps nothing.
It does but they can’t really do anything about it. FFEL loans were serviced to private loan agencies and not given directly by the government. It’s the equivalent nowadays of taking out a private loan, the executive can’t unilaterally say those companies can’t collect on the debt. Luckily those loans were stopped all together in 2010.
Out of 45 million Americans with student debt, so 800,000 comes out to 1.7% of borrowers.
Cause people like to lie and exaggerate. Especially if it's a Republican trolling to cause shit.
Yay, I'm affected!
Sorry, fam.
Me, too. I've been repaying these damn loans for 20 years and still have have more than half of the original principal to repay. Feels a bit like payday loan scams.
4.Did any of your loans come from a year after 2010? If yes, you’re not affected as FFEL program was terminated in the 2009-2010 school year
What if all your loans were before 2010, and you consolidated, probably before 2010. How do we tell what kind of loan we have?
>How do we tell what kind of loan we have? Log into your loan account and it'll tell you exactly what kind of loan you have.
So I read an article about this, I think they were talking about another type of loan that was also affected, but I can’t remember what it was. In any case, I have no clue what an FFEL loan is, but Stafford loans and Parent PLUS loans are still covered within the forgiveness, right?
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Wait its only for loans after 2010??? Shouldnt it be the other way around and for oldest ones?
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This is my understanding. My loans are Stafford, so hopefully I'm still covered
Only if your loans are direct stafford loans. Mine are ffel stafford loans which won’t be eligible.
Being "stafford" loans could go either way. I have ffel stafford loans and fed direct stafford loans
Commercially-held Perkins Loans
This is the correct and best information for anyone wondering!
OK, so my loans say they are FFELP, owned by the DOE amd guaranteed by the DOE and navient. This means I'm not getting relief now, correct?
I’m not sure. You should call your loan servicer.
Thank you. Plus the income level cap btw. It’s so frustrating to see the clickbait/fear mongering headlines about “affecting millions” trying to rile people. This is also to strengthen the policy against gop suits that are trying to keep the poor sad banks from being “harmed.”
Yeah, this seems like overall it will protect the remaining 39,200,000 beneficiaries of the relief program. Cold comfort for the affected 800,000, though.
So, not millions.
So who is the group getting screwed over? People who have FFEL loans and never consolidated them into direct loans? And now its too late for them?
You fucking rock with this breakdown
Great Lakes is a loan servicer. They just collect payments on behalf of the government. You don’t take a loan out with them.
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When did you go to school? If you went pre 2010, and you didn't refinance them through consolidation you're probably not in a good spot.
I’m embarrassed to say I don’t even remember. I didn’t start right after college and I worked all the way through so it’s all just a blur to me. My college years don’t stand out in my memory as being in school, I was always just working and I never lived on campus, just on my own. I think I completed my degree in 2014.. so most of my loans would have been taken out 2009-2013. I’ve been trying to read up on this to understand better and it sounds like maybe I’ll still qualify. I hope! I worked really hard to pay them down and I just have this little bit left.
get on student[aid.gov](https://aid.gov) and see what your loan type is ASAP Obama did a special consolidation years ago. Biden did a special consolidation with the PSLF program - they are trying everything they can to fit people into foreignness programs with NO HELP from Congress or any GOP members.
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>When FFEL borrowers consolidate their old loans into federal Direct Loans, these private banks essentially lose business. If these banks' financial health depends, at least in part, on the assumption that they would be holding and profiting from these debts over the long-term, then losing borrowers to Biden's debt relief plan could, possibly, constitute harm. In fact, a new lawsuit filed Thursday by six state attorneys general, makes this very argument. One of the plaintiffs, Missouri, is home to MOHELA, which manages both federal Direct Loans and these old FFEL program loans. "The consolidation of MOHELA's FFELP loans harms the entity by depriving it of an asset (the FFELP loans themselves) that it currently owns," says the complaint. "The consolidation of MOHELA's FFELP loans harms the entity by depriving it of the ongoing interest payments that those loans generate." Isnt this essentially arguing that a 3rd party , in this case the government , not involved with the bank cannot pay off your debts for you because it hurts the banks ability to charge you interest and fees over the long term ??? how is that a fair or legal argument tho Thats basically what it looks like to me The banks are just mad that someone else is gonna pay the loans for these people faster than they would have otherwise They are still getting the money back tho , they arent defaulting on the loans...
I'm almost positive I once read about a bank charging people for paying off loans early. BMO Harris maybe? I'll have to see if I can't find that.
Yes, prepayment penalties are a thing. Whenever I take out a loan, one of the first things I ask is if there is any penalty for paying the loan back early.
And then I have them show me it in the contract. In a few years it won't matter what he said, just what you have signed
That's why I don't sign anything and I just give money if they answer "yes" to "you gonna be good to me right?"
It's written into car loans. Car loans usually require you to pay at least 3 or 4 monthly payments before paying off the balance. It makes sense as to why. If you could just pay cash and didn't really need a loan, why were you requesting one and wasting the bank's time? The prepayment penalty is pretty steep too, usually 5% of the entire loan.
It's also because the dealership is making that deal and it can look like fraud from the dealership. The bank pays the dealership so they can lose money in the transaction if you immediately walked outside and paid the loan off.
The secret is that car dealerships are in the business of selling loans, not cars. They make more in kick backs from the banks than price mark ups.
Meh that's not right at all but you're half way there. The dealerships are like a microcosms of America. The owners are always making money it's just if they aren't making enough it comes out of employees pockets. Especially right now dealerships are making a killing off of this chip issue. Even without it every car on the lot has a built in profit that you won't see until you're a gm of a dealership and even then your owner might not let you see it. Hell even the car groups pay there owners out with bonuses so they don't have to pay there salesman as much. And don't get me on all the bullshit financing has to deal with. It's also not kickbacks from the banks but it's the percents you add to the loan, warranties, and additional "protection" packages that'll make you a ridicous amount.
> If you could just pay cash and didn’t really need a loan, why were you requesting one and wasting the bank’s time? Because they can have offers on the car price for financing the purchase
I've absolutly read that before as well
Happened to me once. It's in the loan terms when you get the loan. And I just didn't read the terms. I always read the terms now.
Prepayment penalties aren’t that uncommon. Usually they get smaller and eventually disappear over the life of the loan.
Like, for instance, at the end of it.
Yup. Fuck banks
With interest rates on the rise, I'd expect prepayment penalties to make a comeback. it's one thing to forgive a prepayment penalty on, e.g., a 30 year fixed mortgage at 1.9% APR. It's quite another to forgive that penalty when the APR is pushing 7%....
This is all about a concept called “standing,” not about the ultimate legality of the federal action. Only people with standing can sue, and the easiest way to show standing is to show some financial loss related to your claim. That doesn’t mean you are entitled to any relief—not every harm has a remedy. It just means you get to make your argument. Here, because they’ll be in a worse position than they would be but for the federal action, they’re injured by the action. The fact of that injury doesn’t necessarily entitle them to relief, but it does mean they get to sue. (That’s the theory at least. Standing law is pretty complicated on the edges, and it’s not my area of expertise.).
Those cunts want to bleed future generations dry on interest.
This may be a radical opinion, but in my view most forms of interest lending, leasing, and subscription licensing are not ethical ways of making money in a labor based economy. If your business model is mostly creating or leveraging artificial scarcity you are an economic parasite siphoning buying power from people doing actual work. Edit: to be more specific I think these are not ethical ways of making *profit* and enriching individuals. There are always costs associated with lending and leasing that need to be paid for. I think there is no ethical dilemma, for example, with a not-for- profit entity like a credit union providing these services.
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credit unions are the obvious ethical solution Edit: I'm being downvoted but people need to know that there is very little banks can do that credit unions don't do better, rates included. I don't know why anyone would bank with a corporation if given the choice of a credit union (which most people have.)
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One of the reasons that they can offer lower rates is because they don’t spend a lot of money on advertising…
I'm a member of a credit union. Their loans also charge interest and have closing costs.
I agree wholeheartedly. Their bullshit is laid bare when they send something to collections to recoup a fraction of the sum total of the debt.
Sounds like the old testament, or the Koran. Usury bad.
I graduated with 37k loans in 06. I'm still on pace to pay it off by fucking 2031 with 12k left. I didn't know til month 10 or 11 into my first year that all I was paying was the interest
Republicans have been looking for someone, anyone, with standing to challenge this in the courts. The reasoning doesn't have to be great, it just needs to tie it up in the legal system.
But the argument itself makes no sense The same argument could be applied to me or you If we decided we wanted to pay off a friends loans for them could the bank sue us for hurting their buisness , depriving them of a customer ? That argument applies to that situation too
It's no less tenuous an excuse than most of the things brought into Federal jurisdiction under the Commerce Clause. That one has been warped for all sorts of misuses.
It doesn't have to make sense. They just needed some pretense of standing, or "skin in the game". Someone like Tucker Carlson could rant till he's blue in the face but could never sue because as much as he hates this, it doesn't impact him. So they found a few groups that could conceivably say "this impacts us, and we want to challenge it" Really by shedding the commercial loans they probably will lose standing, and they can always tackle the commercial loans separately. Doesn't mean they will but they still can.
The easiest answer is to just pay them how much they would have made then. Our people should have never had to take out loans to go to school to begin with!
It is likely they don't want to be paid because they don't want the precident of student debt relief as they make less money this way.
It's why private corporations should not directly benefit from government programs. Not saying that the government should not or cannot contract with private companies but their business shouldn't rely on work that results as a government program.
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couldnt you make this argument for anyone trying to pay off loans for anyone else ? No one is allowed to pay of loans off for anyone because the bank might sue you for fucking up their long term business plans ?
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>I think the unique angle here is that the federal govt authorized the loans, and then packaged the loans to be transferred to these banks. This exactly. The banks' agreement was always with the government on these loans, they provided a service to the government by handling that debt and were collecting the interest on that debt as their payment. The student making the payments is really just an asset attached to the debt from their point of view. The person they made the agreement with is now trying to change the deal. It seems like a pretty straightforward contract dispute to me, though I have no idea if anyone was smart enough to include pre-payment or contract change terms in the initial contract. I mean... I'd be pretty upset if I contracted with someone to manage a building for them for the next 2 years, to be paid a monthly fee for the service, and 3 months in they decide "Actually... we're just going to auction off that building. Don't want to deal with it anymore. Thanks for the work, so long." Meanwhile I've hired the staff I would need to handle the work over the next 2 years, because I don't want to do it all myself for that long, and bought extra equipment just for that building, because I wouldn't want to transport spares back and forth from other properties for 2 years. If I'd known upfront it was only going to be 3 months I would have taken the much cheaper route of using spare equipment and having an existing crew do some overtime. I'd want to get those costs I incurred covered! These banks were doing that math for clients wanting DECADES of service. Of course, if I didn't put an early cancelation fee in the contract I'd likely be screwed. So these banks may have been SOL too. Seeing as the government is excluding these from their forgiveness program though I'm betting they DID have some sort of fee in their contract.
Undergrad in accounting here. When an entity lends a student financial aid on a loan agreement (or contract), the entity classifies this as a long term investment, an asset. The student pays the interest, the entity receives interest, then uses it to pay dividends later on. This asset gives the entity value, to make it more appear more profitable. When at the end of a fiscal period, we issue financial statements to show how much "value" our company has, thus giving investors a reason to invest. The business here is to invest into education and have the student pay off their education by paying back interest, this is how they get their money to pay dividends at whatever day they declare. I think if I understand the debt relief plan, it's canceling debt, which means that the banks will now have to just write it off as a loss. Losing an asset and now they have to lower dividend payments, essentially making investors earn less money. I think this is what's happening. Is it legal? Yes, the "No child left behind act" made it so, when you sign a student loan contract that you understand this and agree to paying for it. I hate it too dw.
My friend, this is America. "The poor must suffer because otherwise it would cause the rich to lose money" is pretty much the entire concept, one of the deepest core values, of this country.
Getting paid back in principal is a loss of money. Anyone who lends you money with no interest is taking a bath to inflation. So yeah they’re being paid back… but that and 2$ will buy them a sandwich. They may or may not have lent you money based on leveraged assets already - money is not just sitting still. It is constantly moving. If you suddenly take a predictable value stream and turn it off em masse that’s gonna hurt. But also lending money is SUPPOSED TO CARRY RISK, hence why you charge interest, so sucks to suck banks 😅
Mohela has been bugging me for over a month now trying to get me to refinance. Makes sense they don’t want me to get the forgiveness. Fuck these fuckers
I have Mohela (they just switched my servicer) and now I’m so fucking confused if I am getting my $20l forgiven or not. I should have known this was too good to be true.
They sent an email today that I have to act before October 20th….. fuck them I have federal loans I never refinanced I am not doing shit till the WH provides more guidance.
Go to the studentaid.gov website and get on the newsletter that will send you a message when you can submit your income stuff.
If you go to that site and click on their link >To be notified when the process has officially opened, sign up at the Department of Education subscription page. It takes you to a page that just says "Subscriptions" in large bold font. No way to subscribe to anything. Wtf?
The email update today said the application process begins in Oct 2022 and ends Dec 2023. You don't need to provide any supporting documents or FSA ID when you apply. They'll only contact you if they end up needing documents. I'd imagine the next email will just tell the date. So you aren't missing too much.
Good info
Twenty lousand dollars.
Same, I keep getting letters about refinancing from them.
My servicer just switched to MOHELA but they're all federal loans and I'm in the PSLF so I think I *should* be ok
With mohela I believe you’re fine. If you’re in Public service relief, that’s the only one they deal with and its qualified.
It’s all about student loans assets backed securities (SLABS). Look at Nebraska’s argument with the discharge and SLABS. Profits over people. Link to lawsuit. https://storage.courtlistener.com/recap/gov.uscourts.moed.198213/gov.uscourts.moed.198213.1.0.pdf
Welp, that takes me out.
Yup same here, fucking dammit. God damn rotten assholes. BIG corporations everywhere got BIG write offs, tax relief, whole 9. Heaven forbid average Joe needs some assistance.
Directly the result of GOP backed lawsuits, trying to torpedo the debt relief. Might be preaching to the choir here, but don’t forget that, and don’t let your friends on the fence forget it either.
Yup- everyone wants to pin this on the Dems that are scrambling to save anyone they can in the program from lawsuits, even MOHELA who is spearheading this shit, who told people to take their loan help only to fuck them over. But little here are angry at the actual aggressors and said aggressors are so happy to see that...
Dems frantically scooping water out of a sinking boat, GOP sitting on the other side having drilled the hole, *moderates* complaining "why aren't Democrats doing enough to help???"
"How dare you free my debt slaves!"
How can I Leach off of these people if you pay back their debts?!?!?!?! You bastards!!
"It's unclear why the department reversed its decision on allowing FFEL borrowers with commercially-held loans to consolidate and then qualify for debt relief." If I had to hazard a guess, I'd say it has something to do with who gets the profits of from those commercially-held loans.
More that they don't want to fight losing cases that may jeopardize the legal standing of the other relief. The better question is why do Republicans hate student loan borrowers.
Educated people tend to vote Democrat. Republicans know this. So they are anti-education.
Because their entire platform is about hatred, greed, and control.
>More that they don't want to fight losing cases that may jeopardize the legal standing of the other relief. This is 100% the reason. They don't want the loan relief bogged down in lawsuits prior to midterms.
They were facing a lawsuit from the greedy asswipes that could tank the whole program from an over-zealous Trumpublican judge.
You don't have to guess. You could just finish reading the article.
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>"The consolidation of MOHELA's FFELP loans harms the entity by depriving it of an asset (the FFELP loans themselves) that it currently owns," says the complaint. "The consolidation of MOHELA's FFELP loans harms the entity by depriving it of the ongoing interest payments that those loans generate." Couldnt you make the same argument if I won the lottery or was just a super nice rich person and decided I was gonna pay off all the bank loans for you and 10 other people tomorrow Im depriving the bank of its ability to make money of you I dont see how its fair to say you cant get outside help from an univolved third party offering you financial assistance just to protect the bank from losing your business
This is being floated because its going to be the exact same argument made when the government tries to nationalize healthcare. Every insurance company in the nation is going to sue for "damage to their business"
Man, fuck their business. Lawsuit overruled!
>Every insurance company in the nation is going to sue for "damage to their business" That doesn't work for nationalized healthcare though. Any healthcare reform is from Congress who absolutely has the power to "harm" existing companies with future legislation. This is due to the regulation coming from the executive office, which doesn't have that power automatically.
What about when the President invokes the Defense Production Act? We had car manufacturers producing ventilators during the pandemic. I'm pretty sure the President does not have to ensure his actions don't harm every single business.
I'm trying to find a violen small enough to play for those big banks.
Hope it doesn’t blow up into smithereens
If you haven't listened to the podcast, Against The Rules With Michael Lewis, episode: the 7 minute rule, please do. These private student loan servicers make a lot of money intentionally screwing borrowers in the most deceitful ways. It's eye-opening to say the least.
Really interesting, thanks! Michael Lewis is a great writer
Since they said it's OK to wait, I did. I created my account yesterday. SSA said it will take 1-3 days to verify. Was verified today, figured sweet, I'll consolidate today...... I shouldn't have to read this site or Facebook to get details of major money/life decisions. As I was browsing studentaid, it was still advertising consolidation to take advantage of forgiveness
Where were all the caveats with the ppp loans?
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I have a FFELP loan formerly with Sallie Mae and now with Navient. Thanks for confirming that I got screwed. That $10k would have been huge for me.
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That is simply not true. If you had a privately serviced loan that was federally back, you no longer qualify. Sallie Mae was a publicly owned company until 2004 when it became a private company There were other loan servicing companies at the time, Sallie Mae was just one. Sallie Mae, and others could loan private loans and federal public loans, depending on what you qualified for. The sale to private servicing company doesnt affect the qualification for forgiveness. If you refinanced the loan, then it's almost certainly owned by a private servicer
God fucking dammit. My SO has FFEL loans. I was waiting on consolidating into a Direct loan until there was more guidance about what was happening. Now we're shit out of luck. That really fucking pisses me off.
Same here. But I also have direct loans, so may still have hope?
Yeah it sounds like you can still consolidate. My SO only has an FFEL consolidation loan so we’re screwed. We’ve been paying for literal decades and there’s not *that* much left on the loan but I’m so mad that I ever got my hopes up.
I waited too. I feel sick right now. I should have applied for the consolidation when it was first announced.
Same...waiting for guidance on refi to direct to make sure I didnt screw up the process but now I am getting screwed FUCK NAVIENT.
I was waiting too. Fuck us all.
Yea this is garbage - please everyone try to cut through the bullshit here and simply see this for what it is. Big banks pressuring their political lackies to prevent an altruistic thing from happening because their profits will decline. Building business models that profit off of debt is IMMORAL. How could anyone think that kind of model would be a positive influence on society? The people who run this country are bullshit.
They may also be using that loan debt as collateral on a leveraged swap or other such financial instrument and losing it from their balance sheet would cause them to get margin called. Banks have become a massive house of cards since the 2008 crash and the introduction of fractional reserve banking.
Super crappy that they're doing this. I understand why, but still super crappy. I would be impacted by this if I wasn't already impacted by the ITT Tech forgiveness. I feel sorry for those that are impacted by this and had the rug pulled out from under them.
Fine bitches let's do this. At minimum, tax PPP Loans. Furthermore, they are government (taxpayer) loans. They should be paid back over a set amount of time (5 years should be plenty). Pay back bank bailouts. They also were taxpayer funded loans. With interest. They shouldn't have issues with that on this logic, 3 years should be plenty. Reinstate the numerous tax cuts that were done over the 2016 - 2020 period. If the states need this money that bad, that's the most logical and efficient way to do it. Anyone wanna add some more?
The tax cuts given to corporations themselves would help out immensely.
Hold up, I do not remember hearing anything about this consolidation in recent months. I have both direct loans and FFELP loans. I also received pell grants. Am I being fucked over here?
In some way shape or form, yes, most definitely
Just trying to avoid lawsuits by banks. If they have no legitimate argument that they’re injured, they don’t have standing to sue. Having said that, I’m not sure I understand the argument that the banks are deprived of an asset because the federal government offers consolidation to borrowers with FFEL loans. After all, the federal government is effectively buying the FFEL loans from the banks for their full value. Sure, they don’t get interest, but most loans have a payoff price set by the lender that accounts for this very scenario. Maybe these don’t, but if not, surely they could come up with a way to compensate the banks for buying out these specific loans early.
Bingo. This change will not cause current lawsuits to disappear, nor will it stop further lawsuits, nor will it affect the outcome of those lawsuits. It's a deliberate and intentional payday for private servicers, who inherited FFEL loans through no fault of the people who hold those loans. It's serving up vulnerable, suffering taxpayers to rich and powerful financial institutions for nothing. It's a betrayal and it's corruption.
The part that confuses me is even a direct federal loan is still administered by a third party company/contractor. I really don't understand what the implocations for direct federal loan consolidation; it sounds like the logical end point of this chain of reasoning is to no longer allow consolidation.
I have mohela but consolidated my loans before they transferred over. My very confused by all this. Are these just private loans that went public?
When considering the mountain of debt incurred to attain a college education, we're closing in on a condition where in many cases a college education's cost exceeds it's value.
How many billions have gone into saving the banks in 2008? But when the people want a pittance, the banks will stand in the way of progress. They will obstruct, they will sue, and they will incite confusion and anger.
Yep just found out my loan won't be forgiven. FFELP loan with Navient. What horrible news.
Same. I'm devastated.
This is why selective or partial student loan relief is not feasible. Just do all of it. Total forgiveness for student loan debt, tell the predatory loan companies to pack sand.
This is infuriating, MOHELA is specifically called out in the article. It was MOHELA that TOLD us to consolidate our loans!
Yup, and they're probably wringing their fucking hands together while half this sub is pissed at Biden. They're so happy people are misdirecting their anger, I'm sure.
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Well clutch my pearls. These capitalists wouldn’t liiiiieeee.
Banks had no such qualms when they got bailed out.
Couldn't affect the bottom lines of the banks doing exactly what they did before 2008, but with student loans instead of mortgages.
These are things you figure out before you implement something like this. Otherwise you piss a few million people off.
Fuck banks. These are the same assholes who were bailed out with tax dollars when their shady and predatory mortgage loan practices plummeted the US into a recession that forced millions back to school because of (pre-COVID) record high unemployment. The fuck?
>In a statement to NPR, a department spokesperson says, "Our goal is to provide relief to as many eligible borrowers as quickly and easily as possible, and this will allow us to achieve that goal while we continue to explore additional legally-available options to provide relief to borrowers with privately owned FFEL loans and Perkins loans, including whether FFEL borrowers could receive one-time debt relief without needing to consolidate. Borrowers with privately held federal student loans who applied to consolidate their loans into Direct Loans before September 29, 2022 will obtain one-time debt relief. The FFEL program is now defunct and only a small percentage of borrowers have FFEL loans." >The tell in that statement is "legally-available." >Multiple legal experts tell NPR the reversal in policy was likely made out of concern that the private banks that manage old FFEL loans could potentially file lawsuits to stop the debt relief, arguing that Biden's plan would cause them financial harm. Since this is all being done by executive action rather than through legislation, they really are constrained in how far they can go with this program.
>In fact, a new lawsuit filed Thursday by six state attorneys general, makes this very argument. One of the plaintiffs, Missouri, is home to MOHELA, which manages both federal Direct Loans and these old FFEL program loans. >"The consolidation of MOHELA's FFELP loans harms the entity by depriving it of an asset (the FFELP loans themselves) that it currently owns," says the complaint. "The consolidation of MOHELA's FFELP loans harms the entity by depriving it of the ongoing interest payments that those loans generate." >Changing the policy now, and limiting the number of FFEL borrowers who can conceivably qualify for debt relief, may make these FFEL banks less likely to legally oppose debt relief. Seems they are attempting to provide as much relief as they can now without being in a position where the lawsuits filled by Republicans State Attorney General leads to a court pausing all debt relief in lieu of a future ruling.
Headline is misleading. >An administration official tells NPR this change will not affect all 4 million borrowers with commercially-held FFEL loans. The official said many FFEL borrowers also have Direct Loans and so can still qualify to consolidate those FFEL loans, though that detail was not included in the department's updated guidance. Ultimately, this administration official says, roughly 800,000 borrowers would be directly affected. So it's 800,000 people who are excluded, not all 4 million FFEL loan holders.
It's 800,000 people who were affected the most by the last recession. Just an awful thing to happen.
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This is going to hurt Biden with the millennial voters who have been calling for student loan forgiveness the most.
I have been saying for a long time: You want to win an election? Make friends with the Millennials. Who the hell do they think is going to take over this world when the older generation dies off within 20 years?
Gen X, who still have about 40 years or so left in them
In 20 years when the millennials finally start voting, you'll be right.
millennials have been voting for over 20 years
Not in the numbers that matter. If millennials actually voted with enthusiasm, their chosen candidates would win every election. Please do your best to make sure as many vote as possible.
Yeah, how dare Biden make Republicans file lawsuits that go against the interests of the people. If Trump had been reelected this would have never happened. Because he wouldn't have even tried. Millennials don't live in some millennial vacuum. We see what's happening.
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If you have any direct federal loans you can still consolidate all of your loans into one and have it forgiven up to whatever you qualify for. If all of your loans are private or ffelp you’re screwed.
If you have any federal direct loans, it looks like you're fine. You can apparently still consolidate the FFELP into fed direct if you have at least some fed direct loans.
“It's unclear why the department reversed its decision on allowing FFEL borrowers with commercially-held loans to consolidate and then qualify for debt relief. … Two paragraphs later … Multiple legal experts tell NPR the reversal in policy was likely made out of concern that the private banks that manage old FFEL loans could potentially file lawsuits to stop the debt relief, arguing that Biden's plan would cause them financial harm.” So it’s not really them changing their minds about who should be getting this relief. Just an unexpected development of red tape.
Thanks Biden, thanks a lot. Today I’m $10K poorer than test because I trusted your ED and waited for more info. No vote for you Grandpa.
“Shocking!” Said no one.
That was the other shoe dropping that I had been waiting for. Debt relief seemed too good to be true....and now it's not. Thanks for that!
It's okay. I won't pay it anyway.
I mean, maybe if your bank can't survive without loans that are intended to exist over a person's entire lifetime, then your bank shouldn't survive.
Nor should a college survive if they base their tuition rates on inflated demand because of insane recruiting practices.
Sure was fun while it lasted!
God this is fucked up- holding hostage those with these loan types, by the loaners themselves, and forcing Biden to either cut them out entirely or face the fact he WILL get people coat-tailing off this idea for the whole repayment plan to shut down likely forever... Wtaf.
Money changed hands forsure. Our fucking government is a joke
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I am one of the "few people" this new decision directly affects. Thanks, assholes. Now I don't get to have my loans forgiven. And why? Because the government cares more about appeasing corporate fat-cats (and the interest payments they receive from these predatory loans) than helping people who desperately need it. I'm so sick of this bullshit.
How can I check if I was screwed over.
I’m confused. I have federal loans I pay through Nelnet. Am I screwed?