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Student debt forgiveness curveball means some borrowers won’t be eligible

Student loan forgiveness was thrown a bit of a curve after one group of borrowers discovered that a limited backdoor strategy suddenly closed.

About 770,000 borrowers would lose student loan forgiveness, according to a Biden administration official.

But an outside expert estimated that the number could be significantly bigger. The borrowers who are not going to be eligible for forgiveness are those who hold older Federal Family Education Loans and Perkins loans that are not held by or on behalf of the U.S. Department of Education.

Mark Kantrowitz, a student loan expert and author of “How to Appeal for More Financial Aid,” said the number impacted could be up to 4 million, depending on how many have consolidated already.

Kantrowitz said he’s using that figure based on data published earlier by the U.S. Department of Education in the FSA Data Center.

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