Thousands of Vermonters now disqualified from student loan forgiveness
WINOOSKI, Vt. (WCAX) - Not as many Vermont borrowers as expected will be eligible for student loan relief.
More than 11,000 Vermonters have private Federal Family Education Loans or FFEL loans.
The Biden administration originally said borrowers could be eligible for loan relief if they consolidate these loans into direct federal loans which are eligible for relief.
But last week, the Biden administration changed program rules, saying FFEL loans are not eligible for relief unless they started their application before the announcement.
“Many of them feel the floor has been pulled from beneath them. They are being told, well, if you didn’t follow through quickly even though we told you you had until the end of next year, you are no longer eligible,” said Scott Giles of the Vermont Student Assistance Corporation.
The application for student loan relief is slated to launch this month.
Meanwhile, if you work in federal, state or local government, all of your loans could be erased under public service loan forgiveness. A waiver making it easier to apply expires at the end of October. Click here for more information.
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