The U.S. Department of Education will conduct a one-time adjustment for more than 3.6M Direct Loan borrowers this summer and give student loan borrowers at least three years of credit toward loan forgiveness.
Some could see their entire balance forgiven automatically. See Federal Student Aid’s post on the adjustment for more information.
How to Receive Credit Towards Studetn Loan Cancellation
The adjustment is already underway and should be completed by July 1 for all Direct Loans and FFEL Program loans that are managed by ED.
Borrowers with Commercially-held FFEL, Parent PLUS, Perkins, or HEAL Loans need to apply for a Direct-Consolidation Loan to qualify for the one-time adjustment.
The deadline to apply for consolidation is April 30, 2024. There is no fee to consolidate federal loans. It can take at least 60 days to process a loan application. Submitting an application alone does not guarantee any benefits under the adjustment.
Unsure if your student loans qualify or need help applying for consolidation?
Contact an ION student loan repayment counselor through the ION portal today!