As seven Republican-led states sue the Biden administration over the student loan forgiveness plan, a change was added to eligibility. Borrowers whose student loans are guaranteed by the government but held by private lenders – Perkins loans and Federal Family Education Loans (FFEL) – won’t receive the debt relief unless the loans were consolidated before yesterday. The U.S. Department of Education states they are assessing the situation and researching “alternative pathways” for the borrowers left out. This change was made the same day as the lawsuit was filed by the seven states — including Kansas and Missouri. Their complaint targets this very aspect of the forgiveness plan. The suit argues that the debt cancellation would decrease revenue from interest payments for the private banks who manage those loans. But as of now, forty-three million people are still expected to qualify overall for the loan forgiveness.
But in the meantime, what are the alternatives? Marquita Miller-Joshua, owner of Five Star Tax & Business Solutions, speaks on the IBR (Income Based Repayment Plan), consolidation and more. She also offers great reminders for those who qualify for forgiveness and addresses the scholarship money left on the table every year.