Biden’s DOE Quietly Changes Rules About Who Gets Student Loans “Cancelled,” Disqualifies Millions

First of all, let me reiterate that no loans are being “cancelled.” That’s not how this works. The loans are being paid off by someone other than the student who obtained the loan, and that person is the American taxpayer. But this whole student loan situation has been a mess from the beginning. A lot of people said they only reason they announced this student debt “cancellation” was to score some political brownie points ahead of a potentially devastating midterm election. They REALLY needed a win of some sort, so why not throw a few billion taxpayer dollars around, amiright? And honestly, that’s EXACTLY what they were doing. Their plan was never really feasible. It was never really going to work out the way they promised all the low information voters who don’t understand basic financial principles like loans or inflation.

Now that they scored some political brownie points and the conversation has shifted away from the student debt “cancellation” topic, the Department of Education is quietly changing the rules about who will qualify to have their loans “cancelled.” NPR explains says it’s a “remarkable reversal” and that they are “excluding millions from student loan relief.” Eh, I disagree a little. I think they knew this would happen, but they hyped it anyway to score those brownie points and figured they’d just quietly amending it after things calmed down a bit. Then they’d have their cake (the political win) and eat it, too (not actually paying off billions in student loans they can’t afford). Then they just have to hope that the media doesn’t make a big deal about it, which they won’t because they’re Leftist propagandists who won’t talk about anything that might damage their Party or narrative.

One of the major issues is the Federal Family Education Loans, or FFELs, which are issued and managed by private banks while being guaranteed by the federal government. The program ended in 2020, but there are still a lot of people carrying those loans. And as I’ve explained before, you cannot simply “cancel” a debt. It doesn’t work that way. It doesn’t just magically disappear because the President declares it to be “cancelled.” It has to be paid off somehow and by someone. And this debt “cancellation” program was basically just saying that the student doesn’t have to pay it off because the government will pay it off using the American taxpayer’s money. The only problem is that the government doesn’t have any taxpayer money. They’ve spent $30 trillion more than what they have. So they can’t afford to pay off those student loan debts, and private banks aren’t about to eat that cost.

So now they’re trying to be all sneaky and quietly exclude a ton of people from qualifying to have their loans forgiven without being forced to come right out and say, ‘This was a stupid and financially irresponsible plan to begin with and we actually can’t pay off the loans we promised would be paid off. Sorry about that…’