Biden's loan forgiveness plan, according to the CEO of a significant student loan provider, has "generated all forms of uncertainty" for students.

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Biden's student loan forgiveness, according to Navient CEO Jack Remondi, has led to "confusion."

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He said that further advice on how to obtain relief is still needed for consumers with FFEL loans.

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People having FFEL loans are advised by the Education Department to combine them with direct loans in order to be eligible.

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President Joe Biden announced sweeping cancellation of student debts a few weeks ago, but the firms that handle the loans are still debating how to put the relief into effect.

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Biden said at the end of August that he would forgive up to $20,000 of federal student loans for individuals who make less than $125,000 annually.

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Some students will receive the relief automatically, according to his education department, but the bulk must ask for it in the first few days of October.

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It's still difficult for borrowers and student loan servicers to comprehend how to really be eligible for and receive that assistance.

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Navient CEO Jack Remondi highlighted worries about the mechanics of Biden's debt relief during Barclay's Global Financial Services Conference last week.

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Remondi expressed his hope that this will transpire because mandating the consolidation of all those loans would be "a rather large task."

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Finance

By Cali Crystal             May 19, 2020

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