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Borrowers Must Meet April 30 Deadline to Apply for Certain Student Loan Relief

S.J. Steinhardt
Published Date:
Apr 26, 2024


Many student loan borrowers have until April 30 to apply for a full student loan cancellation or more credit towards cancellation under a U.S. Department of Education one-time adjustment, The Washington Post reported.

This initiative is meant to correct past issues with loan servicing that blocked some borrowers with public service loans and income-driven plans from making payments that counted toward forgiveness, according to the Post. Some borrowers, for example, complain that they still haven’t gotten loan forgiveness after decades of payments. Others failed to get the relief they thought they qualified for under the federal government’s Public Service Loan Forgiveness (PSLF) program, which was created in 2007 to encourage public service work for a qualifying employer.

To correct issues such as borrowers not meeting the “qualifying employer” standard, or being misled about their options, adjustments are being applied to borrowers in the Direct Loans and Federal Family Education Loans (FFEL) held by the department. More than 3.6 million borrowers are expected to receive at least three years of additional credit toward income-driven repayment forgiveness, according to the agency.

If borrowers' loans aren’t federally managed, they need to apply to consolidate them into the Direct Loan Program by April 30. After consolidation, the new loans become eligible for the adjustment, and payments already made may be counted toward loan cancellation, the agency said.

The adjustments are being applied to Direct Loans and FFEL. People with federally held student loans won’t have to do anything, but borrowers with commercially or privately held loans under the FFEL program. Parent PLUS loans, Perkins loans, and Health Education Assistance Loans must consolidate first to be considered for payment adjustments.

The consolidation application is available online.