What are usually just technical differences could now determine whether or not a borrower qualifies for President Biden's new and unprecedented plan to forgive hundreds of billions of dollars in federal student debt
Randi Zuckerberg Says She's a ‘Big Proponent of the Real World' When It Comes to ParentingBig picture, the vast majority – roughly 37 million borrowers – will be eligible for the forgiveness based on their loan type , because their debt is under what's called the William D. Ford Federal Direct Loan Program. That includes Direct Stafford Loans, and all Direct subsidized and unsubsidized federal student loans.
Under the Direct program, Parent Plus and Grad Loans, are also eligible for the relief, said higher education expert Mark Kantrowitz.As of now, the U.S. Department of Education is saying that loans qualify if they're held by the department. You may be wondering: Aren't all federal student loans held by the government?Back then, though, it didn't directly give out student loans.
There are two reasons the government may now hold FFEL loans. When these loans go into default, the private companies that previously owned them transfer them over to a guarantee agency that services the debt on behalf of the federal government, Kantrowitz said. The other reason is that the government bought back some of the loans during the 2008 credit crisis.
Because much of the debt is still commercially held, and not with the Education Department, there's concern that it won't be included in Biden's forgiveness. These loans
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