MEMPHIS, Tenn. — There is a chance you might no longer qualify for partial student loan forgiveness.
The Biden administration abruptly changed guidelines on Thursday for those with privately held federal loans: specifically borrowers with Federal Family Education Loans and Perkins Loans (FFEL).
“Thankfully, I knew to keep mine in the public sector,” explained Morgan James, a Memphis resident who owes $200K in debt. “So, mine are still going to be forgiven.”
More than 4 million borrowers have FFEL loans, but an administration official told CNN that the change would only affect 770,000 borrowers.
In the meantime, six Republican-led states sued to stop student loan relief Thursday, including Arkansas.
“While the president claims his motive was to give relief on some level to many Americans, as old-timers like my dad would say, ‘The road to hell was paved with good intentions,” said Arkansas Attorney General Leslie Rutledge.
Republicans argued canceling the debt was an abuse of power that would harm the economy by increasing inflation.
However, Memphis residents with student loan debt told FOX13 that interest rates are predatory to recent grads on a limited income.
“It’s so hard for so many people that are making a median income that can’t even fight back or even put a dent in their loans,” said Adam Ott, who has $18K in student loans. “It’s hard to have any sympathy for student loan servicers.”
“The interest rates on student loans are ridiculous,” said Melani Radic, who owes $10K in student loans.
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