Last Chance: Combine Your Federal Student Loans by June 30

New Deadline: Americans with Federal Student Loans Have More Time to Combine Loans and Get Closer to Forgiveness

Streamlining Payments: How Combining Federal Student Loans Can Help Borrowers Get on Track for

According to UPI, the U.S. Department of Education has given more time for Americans with federal student loans to combine their loans until June 30. This allows borrowers to get a better count of their payments, making it easier to see progress toward getting their loans forgiven. James Kvaal, who works for the Education Department, says they want to make sure borrowers get credit for all the payments they’ve made towards forgiveness, especially for those with certain types of loans. He’s encouraging people with FFEL loans to do this quickly to get these benefits.

This change is part of the Education Department’s efforts to fix mistakes in how payments are counted. They’re moving fast to sort out these issues. Now, even people with FFEL loans that aren’t held by the government can merge their loans until June 30 and get the payment count fixed. This helps borrowers know when they can get their loans forgiven, so they don’t have to keep paying forever. But it’s important to remember that any forgiven amounts will be counted as income by the IRS, and you might need to pay taxes on them. That’s why borrowers must keep track of their loan details and repayment options.

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Take Control of Your Student Loans: How to Merge Your Loans and Avoid Debt Growth with StudentAid.gov’s Tools

Education Department officials say it’s really important for borrowers to have the right information about their loans. They’re especially concerned about forbearances and whether loan servicers are following the rules. Many borrowers have struggled because unpaid interest during forbearances gets added to the loan balance, making the debt grow faster. To help borrowers figure out if they can merge their loans, StudentAid.gov has tools to break down loan details. This way, people can see what kind of loans they have and how much they owe, helping them make smart choices about paying back their student loans.

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