Biden admin announces student loan forgiveness policy change

WASHINGTON, D.C. – The Biden administration changed eligibility for its student loan forgiveness plan the same day Republicans sued to block it.

Six Republican-led states are fighting the president’s student loan forgiveness plan in court to prevent it from taking effect.

But a change in policy announced Thursday could thwart Republicans’ legal challenge.

Now, borrowers whose federal student loans are held by private lenders will be excluded from taking part.

That will affect about $770,000 student loan borrowers.

The Republican lawsuit filed in Missouri federal court argues the president’s plan will hurt private lenders.

Last month, President Biden announced the plan to cancel up to $10,000 in student loan debt. It applies to those who make under $125,000 per year and provides up to $20,000 in relief for Pell Grant recipients.

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