News Update: Biden-Harris Administration Extends Loan Consolidation Deadline for Student Loan Forgiveness
The Biden-Harris Administration has announced an important update regarding the Student Loan Forgiveness Deadline Extension. Borrowers seeking Income-Driven Repayment (IDR) and Public Service Loan Forgiveness (PSLF) now have until September 2024 for the payment count adjustment. Consolidate your loans by June 30, 2024, to qualify for forgiveness and get credit for IDR and PSLF programs. This extension provides more time to consolidate loans and accurately track progress toward loan forgiveness.
Key Updates:
- Extended Consolidation Deadline: Borrowers with non-federally held Federal Family Education Loan (FFEL) Program loans must consolidate by June 30, 2024, to benefit from the payment count adjustment. The previous deadline was April 30.
- Payment Count Adjustment Details: This adjustment ensures borrowers receive proper credit for various repayment statuses, including months in repayment, forbearance, economic hardship, and deferments.
- Automatic Processing: The adjustment will be automatically applied to Direct Loan borrowers. FFEL borrowers held by the Department will also receive the adjustment automatically but must consolidate to receive full benefits.
- Impact on Borrowers: Since August 2023, the Department has been identifying and discharging loans for eligible borrowers. This has provided nearly 1 million borrowers with $49.2 billion in relief.
Understanding the Payment Count Adjustment:
The payment count adjustment will automatically count months in the following statuses:
- Any repayment status, regardless of payment amount, loan type, or repayment plan.
- Twelve or more consecutive months or 36 cumulative months in forbearance.
- Months in economic hardship or military deferments from 2013 onwards.
- Any deferment (excluding in-school deferment) prior to 2013.
- Time in repayment, deferment, or forbearance on earlier loans before consolidation.
How to Benefit from the Adjustment:
- Direct Loan Borrowers: The adjustment is automatic.
- FFEL Program Borrowers: Consolidate into the Direct Loan Program to receive full credit.
- Other Federal Loan Borrowers: Consolidate to Direct Loans to benefit from the adjustment.
For more details on eligibility and the consolidation process, start your FREE consultation with a My Education Solutions Advisor.
Please note: This announcement is for informational purposes only and does not constitute financial advice.
Disclosure: This blog contains general information about student loan forgiveness and should not be construed as financial advice. Please consult with a qualified financial advisor regarding your specific situation. Individual results may vary based on unique circumstances.
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