#banks haven't been involved in federal student loans for nearly 15 years | Explore Tumblr posts and blogs

thepioden · 4 days ago

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It's not even third-party lenders and servicers. The federal government IS the lender. They contract to the servicers for customer service and data management, but the Department of Ed owns these loans. PSLF is a program for federal loans. It's not like Biden drained the coffers to pay off banks to forgive these loans, his admin just told the government to stop collecting, per the terms they had offered to the borrower.

Remember: Biden is forgiving federal loans. Every time you hear about Biden's loan forgiveness, there is zero extra money paid out. It is potential loss of revenue only - the same as the tax cuts republicans are so goddamn horny for.

#banks haven't been involved in federal student loans for nearly 15 years #Biden isn't doing anything about private loans - he can't - and everything you hear about him forgiving the federal government is the lender #federal student loan forgiveness costs $0 out. None. Zip. It is ONLY lost potential revenue.#If the borrower is low income it's actually cheaper to forgive the loan because their income driven repayment amount might be $0 #but that loan still costs money to service

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