A worker at a student-loan company says the ‘lack of guidance’ from Biden’s Education Department on debt cancellation is hurting borrowers: ‘I’m just so worried people are going to be left out’
A student-loan company worker expressed concern with the lack of guidance on Biden''s debt relief. She said that FFEL borrowers in particularly are confused on whether they qualify. Biden''s administration has maintained it is prepared to implement this blanket relief. Student-loan companies are tasked with carrying out President Joe Biden''s student-loan forgiveness plan — but a worker at one of those companies said guidance on how exactly to do that is lacking. Leading up to Biden''s August announcement of $10,000 to $20,000 in debt cancellation for federal borrowers making under $125,000, many advocates and lawmakers were expressing concerns with how exactly that relief would be implemented. Lawmakers on both sides of the aisle requested additional information from the Education Department on its preparedness to carry out blanket relief, and loan servicers themselves warned the department that it would be difficult to seamlessly implement loan forgiveness on such short notice. A worker at a small student-loan company in Iowa told Insider that since Biden''s announcement, the levels of confusion have been high — for both borrowers and servicers. "There''s a complete lack of guidance from the Education Department on what to advise borrowers," the worker, who requested to remain anonymous but whose identity is known to Insider, said. "There''s so much information borrowers still need, but this relief is on a deadline and I''m just so worried that people are going to be left out." The worker specifically assists borrowers within the Federal Family Education Loan (FFEL) program, who have loans that are commercially-held and not eligible for federal relief.
A worker at a student-loan company says the ‘lack of guidance’ from Biden’s Education Department on debt cancellation is hurting borrowers: ‘I’m just so worried people are going to be left out’
A student-loan company worker expressed concern with the lack of guidance on Biden''s debt relief. She said that FFEL borrowers in particularly are confused on whether they qualify. Biden''s administration has maintained it is prepared to implement this blanket relief. Student-loan companies are tasked with carrying out President Joe Biden''s student-loan forgiveness plan — but a worker at one of those companies said guidance on how exactly to do that is lacking. Leading up to Biden''s August announcement of $10,000 to $20,000 in debt cancellation for federal borrowers making under $125,000, many advocates and lawmakers were expressing concerns with how exactly that relief would be implemented. Lawmakers on both sides of the aisle requested additional information from the Education Department on its preparedness to carry out blanket relief, and loan servicers themselves warned the department that it would be difficult to seamlessly implement loan forgiveness on such short notice. A worker at a small student-loan company in Iowa told Insider that since Biden''s announcement, the levels of confusion have been high — for both borrowers and servicers. "There''s a complete lack of guidance from the Education Department on what to advise borrowers," the worker, who requested to remain anonymous but whose identity is known to Insider, said. "There''s so much information borrowers still need, but this relief is on a deadline and I''m just so worried that people are going to be left out." The worker specifically assists borrowers within the Federal Family Education Loan (FFEL) program, who have loans that are commercially-held and not eligible for federal relief.