The CEO of a major student-loan company says Biden’s loan forgiveness plan has ‘created all types of confusion’ for borrowers
Navient CEO Jack Remondi said Biden''s student-loan forgiveness has created "confusion." He said borrowers with FFEL loans still need additional guidance on steps they need to take to get relief. Currently, the Education Department is advising people with FFEL loans to consolidate into direct loans to qualify. Weeks after President Joe Biden announced broad student-loan forgiveness, the companies that service those loans are still grappling with how to implement the relief. At the end of August, Biden said he would cancel up to $20,000 in student debt for federal borrowers making under $125,000 a year. His Education Department said the relief will be automatic for some, while the majority will have to apply for it in early October . Borrowers and student-loan companies are still struggling to understand the mechanics of actually qualifying for, and getting, that relief. During Barclay''s Global Financial Services Conference last week, Navient CEO Jack Remondi expressed concerns with the logistics of Biden''s debt relief and the lack of clarity companies have at this point. "Probably the most challenging thing for us right now is what we don''t know," Remondi said. "There''s more we don''t know about the plan and the program than we do know about what''s going to happen.
The CEO of a major student-loan company says Biden’s loan forgiveness plan has ‘created all types of confusion’ for borrowers
Navient CEO Jack Remondi said Biden''s student-loan forgiveness has created "confusion." He said borrowers with FFEL loans still need additional guidance on steps they need to take to get relief. Currently, the Education Department is advising people with FFEL loans to consolidate into direct loans to qualify. Weeks after President Joe Biden announced broad student-loan forgiveness, the companies that service those loans are still grappling with how to implement the relief. At the end of August, Biden said he would cancel up to $20,000 in student debt for federal borrowers making under $125,000 a year. His Education Department said the relief will be automatic for some, while the majority will have to apply for it in early October . Borrowers and student-loan companies are still struggling to understand the mechanics of actually qualifying for, and getting, that relief. During Barclay''s Global Financial Services Conference last week, Navient CEO Jack Remondi expressed concerns with the logistics of Biden''s debt relief and the lack of clarity companies have at this point. "Probably the most challenging thing for us right now is what we don''t know," Remondi said. "There''s more we don''t know about the plan and the program than we do know about what''s going to happen.