Are you a federal student loan borrower? You may be lucky enough to receive full debt forgiveness or credit for forgiveness through a one-time payment tally adjustment from the U.S. Department of Education. But not all borrowers are eligible and a crucial deadline is fast approaching.
To be eligible, officials say, you may first need to consolidate your loans, and the deadline to do so is Tuesday.
The Biden administration is canceling federal student debt for millions of undergraduate and graduate students and providing some relief to millions more. In total, more than 30 million Americans will benefit, according to NBC News.
More than four million borrowers will have their entire student debt canceled, 10 million will be eligible for debt relief of at least $5,000, and 23 million borrowers will have their accrued interest eliminated.
The U.S. Department of Education will make this one-time adjustment over the summer.
Here’s what you need to know.
Which loans should be consolidated?
If you have one of the federally serviced loans listed here, you should consolidate them to get the most credit possible for loan forgiveness.
- Federal Education Loans Held for Business Purposes or FFEL.
- Parent PLUS Loans
- Perkins Loans
- Health Education Assistance Loan Program or HEAL Loans
If you are not sure what type of loan you have, log into your account at StudentAid.gov or call the U.S. Department of Education’s Federal Student Aid Information Center at 1-800 -433-3243.
Your new direct consolidation loan will be eligible for the one-time adjustment this summer.
What is the deadline to consolidate?
Tuesday April 30.
How can I apply for consolidation of my loans?
Log in to StudentAid.gov/loan-consolidation to choose the loans you want to consolidate and determine a monthly repayment plan for your new loan. You can also get help at the Federal Student Aid Information Center at 1-800-433-3243.
There are no application fees.
Some specific details about Parent PLUS loans
If you have completed at least 25 years or 300 months of repayment on your Parent PLUS loan administered by the U.S. Department of Education, your loan will be automatically forgiven as part of the one-time adjustment. Otherwise, you should consolidate the loan.
NBC Chicago
