College student loan debt shouldn't crush anybody, but especially the people who had nothing to do with it
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The $10,000-$20,000 isn't being given to discharge private student loans, only loans issued by the Department of Education.
FACT SHEET: President Biden Announces Student Loan Relief for Borrowers Who Need It Most
https://www.whitehouse.gov/briefing-room/statements-releases/2022/08/24/fact-sheet-president-biden-announces-student-loan-relief-for-borrowers-who-need-it-most/
https://archive.ph/O7l6H
If you're a student who bundled and refinanced your student loans issued from the Department of Education with a private bank AKA the loans you're referring to, you get nothing from this bailout.
Will private student loans be forgiven?
President Biden outlined his plan to cancel up to $20,000 in student loan debt for qualified federal loan holders to give "relief to the millions of borrowers who need it the most."
The eligibility qualifications were wide and covered a range of those with federal student loan debt. Specifically, those earning less than $125,000 annually (less than $250,000 per year per couple) can have up to $10,000 of their federal student loans forgiven. And borrowers with Pell Grants (traditionally provided to students with the highest financial need) can possibly qualify for an additional $10,000 in student debt forgiveness.
Mr. Biden said the move would affect approximately 43 million federal student loan borrowers. Nearly 90% of people who will benefit from the plan are making less than $75,000 annually, Mr. Biden noted.
But what about the borrowers who don't qualify for forgiveness? Those with private student loans, specifically, are not eligible for Biden's plan and there doesn't seem to be immediate relief on the horizon.
https://www.cbsnews.com/news/private-student-loan-forgiveness/
https://archive.ph/O46Mu
tl;dr It doesn't matter if private student loans are being sold and leveraged by banks like all other private debt is. This bailout doesn't affect private loans, period.