Student Loan Forgiveness Update: New Deadline for IDR Plan Adjustment Announced! Who Qualifies for Relief?

Millions of student loan borrowers are closer to debt relief thanks to the Biden-Harris Administration's one-time account adjustment. This "fix" aims to correct past administrative errors by giving borrowers credit for months that previously didn't count toward forgiveness. However, to benefit from this adjustment, certain borrowers must take action before the window closes.

Critical Deadline: Who Needs to Act?

• The Deadline: Borrowers with commercially held FFEL, Perkins, or HEAL loans must apply to consolidate them into a Direct Consolidation Loan by April 30, 2025 (Estimated extension date based on recent announcements) to benefit from the adjustment.

• Automatic Review: Borrowers who already have Direct Loans or federally-managed FFEL loans do not need to apply; the Department of Education will review their accounts automatically.

How the IDR Adjustment Helps You?

The adjustment counts the following periods toward the 20 or 25 years needed for IDR forgiveness:

1. Past Repayment: Any month in a repayment status, regardless of the payment plan or amount.

2. Forbearance: Months spent in forbearance for 12 or more consecutive months or 36 or more cumulative months.

3. Deferment: Months spent in economic hardship or military deferment (prior to 2013).

This is a one-time opportunity to get closer to forgiveness. If you have older loans, visit StudentAid.gov immediately to check your loan type and consolidate if necessary.