August 15, 2023
You may be one of the 804,000 federal student loan borrowers who just had some or all of your federal student loan forgiven. If that’s you – congratulations, that’s real.
The lawsuit that I told you about in this video last week attempting to block the forgiveness from happening was dismissed by a federal judge in Michigan late last night. That judge — who was appointed by President George W. Bush said the two conservative think tanks that were suing the Biden administration to put a stop to the forgiveness – did not show that they would be harmed if the forgiveness went through. Basically they had no standing to bring the case. So the judge didn’t even have to consider the merits of the case. He also refused to stop the forgiveness from moving forward.
So who qualifies for this forgiveness? Well, as I told you in this video last month this is part of the President’s one-time adjustment plan for federal loan borrowers who have been making payments for 20 or 25 years or 240 or 300 monthly payments and may not have gotten credit for the payments they made. These borrowers have direct federal loans of federal family education loans held by the department including parent plus loans. The Department of Education is adjusting how it calculates student loan payments and is correcting serious errors made in the past that the President says has hurt borrowers. If you think you fall into this category and haven’t received a notification from the department of education saying you loan will be forgiven – just hang tight. As the department continues to recalculate payments they will be sending more every two months for the rest of the year.
Read the judge’s ruling dismissing the case here.
Read more from the Department of Education about the program here.
