Posted October 20, 202212:30 pm
By
Ohio — Student loan borrowers who thought they'd be getting relief, but now aren't, are encouraged to hang on.
Senior Attorney in Economic Justice, Joshua Rovenger, explained borrowers can and should:
- Consider repayment plans that make the most sense
- Consider other debt cancellation pathways if you're permanently disabled, have been defrauded by a school about enrollment, or attended a school that closed
- Reach out to your local Legal Aid Society or other agencies which help with student debt cancellation
This comes after the federal government announced millions would get student loans forgiven, but then backtracked saying those with consolidated Federal Family Education Loans (FFEL) and Perkins Loans not held by the U.S. Department of Education do not qualify for the debt relief of up to $20,000. This is if they didn't apply for consolidation before Sept. 29, 2022.
Rovenger explained why these loans are not qualified for debt relief.
"The private lender still holds those loans," Rovenger said. "And so it would be the private lender that would need to decide to cancel part of the loans.
"The federal government has not taken steps or chosen to buy back those loans," he said.
He added while the U.S. Department of Education is working on a plan to help borrowers in this predicament, there are webinars borrowers can attend in the meantime to help them navigate the process.
The Legal Aid Society of Cleveland is hosting one of these webinars on Nov. 3 for clients at 12:30 p.m.
What You Need To Know
- Many with Federal Family Education Loans (FFEL) and Perkins Loans are impacted
- The Legal Aid Society of Cleveland, The National Consumer Law Center, and The Student Borrower Protection Center are all entities borrowers can contact for help
- Click here to learn more about webinars on student debt cancellation
Original story can be found at Spectrum News 1: All is not lost for ineligible student loan borrowers