Student Loan Relief Act: More than four million Americans have these types of loans. Before Thursday, September 29, the Federal Student Aid site listed both types of loans as eligible. The guidance noted that they could be consolidated into a federal Direct Loan, which would in turn qualify them for the program. 

Now the guidance has changed. It says, “As of Sept. 29, 2022, borrowers with federal student loans not held by ED cannot obtain one-time debt relief by consolidating those loans into Direct Loans.” Why the administration made a major change to the student loan forgiveness program is still unclear. 

A legal issue is believed to be the reason behind the reversal. A spokesperson responded by stating that the administration is exploring all “legal” options to continue to provide student loan forgiveness. The feds made a number of illegal accusations while they believed their presence might result in warranted lawsuits.