Biden Administration Extends Deadline for Student Loan Forgiveness to June 30th

The Biden Administration has extended the deadline for borrowers with non-federally held FFEL loans to consolidate until June 30, 2024, in order to benefit from potential loan forgiveness. This extension gives borrowers an extra three months to qualify for forgiveness.

The Department of Education has already approved $49.2 billion in forgiveness for over 996,000 borrowers through the IDR waiver forgiveness program. The payment count adjustment, introduced in April 2022, aims to address issues where borrowers were not accurately credited for their time towards loan forgiveness.

The adjustment automatically credits months in various statuses, including repayment, forbearance, deferments, and time on earlier loans before consolidation. Borrowers can also receive PSLF credit for any month covered by the payment count adjustment, provided they certify their qualifying employment for that month.

U.S. Under Secretary of Education James Kvaal emphasized the urgency for FFEL borrowers to consolidate their loans promptly to receive this benefit. Borrowers are encouraged to log into StudentAid.gov to review their loan types and take necessary actions to ensure they benefit from these changes.

The full implementation of the payment count adjustment is projected for September 2024. As the June 2024 consolidation deadline approaches, borrowers are advised to consolidate their loans as soon as possible to receive forgiveness and debt relief.