Are refinanced loans eligible for the Student Loan Forgiveness Program?

SYRACUSE, NY (WSYR-TV) – We’ve had more questions about student loan forgiveness. Will you end up feeling sorry for doing something you think would save you money?

Are refinanced student loans eligible under the Student Loan Forgiveness Plan?

In August, President Biden announced student loan forgiveness, ranging from $10,000 to $20,000 for borrowers. The rebate applies only to federal loans, including Parent PLUS loans.

In some cases, private loans offer a better interest rate than federal loans. Given this fact, you may have refinanced your federal student loans to get a lower rate.

Maximo Flint-Morgan, director of financial aid at Le Moyne College, said those who have refinanced their federal loans to a private loan are no longer eligible for the forgiveness.

Flint-Morgan said if you’re considering refinancing a private loan to get a better rate, you might want to think twice. He recommended speaking with a financial advisor to understand if refinancing makes sense in your situation.

Flint-Morgan said the latest guidance from the federal Department of Education shows borrowers can begin applying for a federal pardon in October. The president’s plan faces legal challenges.

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