The Biden Administration announced that they are extending the deadline for borrowers with older FFEL loans to consolidate in order to qualify for potential loan forgiveness.

Originally, borrowers had until April 30, 2024, to consolidate their non-federally held FFEL loans. However, the administration has extended this deadline to June 30, 2024.

The Department of Education anticipates the full implementation of the payment count adjustment by September 2024.

The IDR adjustment, first introduced in April 2022, addresses widespread evidence, including findings from the U.S. Government Accountability Office, that borrowers had not been accurately credited for their time toward loan forgiveness. Additionally, there was substantial evidence that loan servicers had not been properly following regulations, resulting in borrowers spending excessive periods in forbearance.

Key Dates For Borrowers

The new consolidation deadline for borrowers with FFEL loans is June 30, 2024, allowing them to benefit from the payment count adjustment. Previously, the deadline was April 30, 2024.

The full implementation of the payment count adjustment is now projected for September 2024. This extension provides borrowers with non-federally held Federal Family Education Loan (FFEL) Program loans additional time to consolidate their loans into Direct Loans. 

U.S. Under Secretary of Education James Kvaal emphasized the urgency for FFEL borrowers to consolidate their loans promptly, stating, "FFEL borrowers should consolidate as soon as possible in order to receive this benefit that has already provided forgiveness to nearly 1 million borrowers."

Payment Count Adjustment

The payment count adjustment automatically credits months in several statuses, including:

• Any repayment status, regardless of payment amount, loan type, or repayment plan.
• Twelve or more consecutive months or 36 cumulative months of forbearance.
• Economic hardship or military deferments from 2013 onwards.
• Any deferment (except in-school deferment) before 2013.
• Time in repayment, deferment, or forbearance on earlier loans before consolidation.

Additionally, borrowers can receive PSLF credit for any month covered by the payment count adjustment, provided they certify their qualifying employment for that month.

Next Steps For Borrowers

Borrowers unsure of their loan types can log into StudentAid.gov and review the "Loan Breakdown" section of their dashboard. This section provides details on whether loans are Direct, FFEL, or Perkins. For additional information on eligibility and consolidation processes, borrowers can visit StudentAid.gov/idradjustment.

As the June 2024 consolidation deadline approaches, borrowers are encouraged to take necessary actions to ensure they benefit from these significant changes aimed at providing accurate payment credit and debt relief.

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