Student loan forgiveness was ‘dangled in front of us’: How 700,000 borrowers were cut out of Biden’s plan


Washington
CNN
 — 

Michael Christofield was excited when he found out he was eligible for $10,000 in student loan forgiveness under President Joe Biden’s new plan. The debt relief would help him pay off his loans by the time his children go to college.

“I’d be in a position to help them in a way my parents weren’t able to help me,” he said.

But before the application was launched, the Biden administration abruptly scaled back the program. As a result, an estimated 700,000 people with a certain kind of federal loan – including Christofield – lost eligibility for debt

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Student loan forgiveness application 2022: Scams target borrowers

Illustration of a hundred dollar bill on a fish hook being pulled away from an open hand.

Illustration: Aïda Amer/Axios

With the federal student loan forgiveness program officially accepting applications, scams targeting those seeking debt relief are on the rise, according to a string of government warnings.

Why it matters: More than 40 million Americans can benefit from the debt relief that cancels up to $20,000 in student debt for Pell Grant recipients and up to $10,000 for individual borrowers who make under $125,000 per year.

  • President Biden, the FBI and Federal Trade Commission have issued warnings about increased scams around student debt relief.
  • The White House announced its plan to protect borrowers from scammers earlier in
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Biden’s student loan forgiveness plan left these borrowers behind : NPR

Applicants stamped with a "denied" stamp.

Listen closely. Between the din of supporters cheering the cancellation of some federal student loan debts, and the clamor of conservative lawyers arguing that President Biden’s debt relief plan is wildly unconstitutional, you can hear the frustration of borrowers trapped in the middle.

“Emotionally, it’s like a gut punch,” says Chris Tasich.

Lisa Thackwell uses the same language: “A punch to the gut. It would have cut my debt in half,” Thackwell says of Biden’s August promise to erase $10,000 of her loan debt. She and her husband had planned to put the savings toward their boys’ education.

But that

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AOC offers tip for parent borrowers

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What Biden’s Three Recent Actions On Student Loans Mean For Borrowers

Within the last week, the Biden administration has taken several significant actions on student loan relief that may have far-reaching impacts for borrowers:

Taken together, these actions provide important clues about where the administration may be heading in terms of providing relief to student loan borrowers. But questions, and some uncertainty, remain. Here are some key

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