Good News! Biden Extends Loan Consolidation Deadline to June 30th
In this episode, we’re breaking down the Biden-Harris Administration's latest update on the loan consolidation deadline now extended to June 30th. This is crucial for borrowers looking to benefit from the payment count adjustment, which plays a significant role in progressing toward income-driven repayment (IDR) and Public Service Loan Forgiveness (PSLF).
Top 10 Points Covered:
Extended Deadline: The new consolidation deadline for borrowers with non-federally held FFEL loans is now June 30th, extended from the original April 30th deadline.
Payment Count Adjustment: The adjustment will be fully implemented in September 2024, ensuring borrowers receive credit for all qualifying periods towards loan forgiveness.
Importance of Consolidation: Borrowers with commercial FFEL and Perkins loans need to consolidate into the Direct Loan Program to benefit from the payment count adjustment and potential PSLF.
Automatic Adjustments: For Direct Loan and Department-held FFEL Program loans, the payment count adjustment will be automatic.
Scope of Adjustment: The adjustment includes credit for months in repayment status regardless of payment status, significant forbearances, and certain deferments.
Benefits Already Rolled Out: As of August 2023, the Department has already begun identifying and discharging loans for borrowers whose updated payment counts qualify them for forgiveness under IDR or PSLF.
Financial Impact: So far, the adjustment has led to $49.2 billion in forgiveness for nearly 1 million borrowers.
Verification of Employment for PSLF: Borrowers can receive credit toward PSLF for any month covered by the payment count adjustment, provided they certify their employment for those months.
Information and Resources: Borrowers can find detailed eligibility information and consolidation guidance at StudentAid.gov/idradjustment.
Loan Identification: Borrowers unsure of their loan types can verify this information through the “Loan Breakdown” section on their StudentAid.gov dashboard.
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https://thestudentloandoctorllc.as.me/sldmentorshipinfosession
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