Over 30 Million to Benefit: Education Department Extends Deadline for Student Loan Borrowers, Updates on Income-Driven Repayment Plans and Loan Forgiveness

These adjustments aim to bring payment progress up to date for those on income-driven repayment plans and Public Service Loan Forgiveness.

Education Department Extends Deadline for Student Loan Borrowers

President Joe Biden’s Education Department is giving student-loan borrowers more time to get closer to debt cancellation. They’ve extended the deadline for borrowers to benefit from one-time account adjustments, according to the report of Business Insider.

Borrowers must have federal direct loans or federally held loans in the Federal Family Education Loan program to receive the account adjustment automatically. The deadline for others to consolidate into eligible programs has been extended to June 30. Under Secretary of Education James Kvaal emphasized the Department’s commitment to ensuring borrowers receive rightful credit towards loan forgiveness.

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(photo: Newsweek)

Education Department’s Relief Measures

The Department advises borrowers to consolidate early as processing applications may take at least 60 days. Borrowers can apply for consolidation through the Federal Student Aid website. The adjustments will be fully implemented by September 2024 providing borrowers with a clear picture of their progress towards loan forgiveness.

The Education Department is implementing relief measures such as the SAVE income-driven repayment plan. They aim to cancel remaining balances for borrowers with original debts of $12,000 or less and expedite loan forgiveness with as few as 10 years of qualifying payments.

Despite setbacks, the Department remains committed to providing relief to over 30 million borrowers. With the public comment period for the new relief plan ending soon, the Department plans to move towards final implementation this fall, offering hope to millions struggling with student loan debt.

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