PSLF Program Deadline 2024: Soon, there are two very important due dates for applying to have your student loans canceled. Some borrowers may need to do certain things before April 30th to get any student loan relief or to lower their chances of big delays.
Since taking office, the Biden government has gotten rid of more than $150 billion in student loans. They did this through several programs, such as short-term plans and loan waivers. Part of those waivers that help people already covers about a third of that amount. It’s called the IDR Account Adjustment. This is one of the most important things President Biden has done to forgive student loans.
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But the account adjustment is set to end this summer, and some borrowers may need to apply to consolidate their bills by April 30th to take advantage of it. More than 3.6 million borrowers will see a big speedup in the repayment of their loans through the William D. Ford Federal Direct Loan (Direct Loan) Program.
Many of these borrowers will see their loans forgive automatically. The U.S. Department of Education (ED) is making a payment count change to get a more accurate picture of how much each borrower has paid.
Right now, this change is being made and will last until the summer of 2024. By July 1st, 2024, it ought to be complete. The change will be made automatically to all Direct Loans and all Federal Family Education Loan (FFEL) Program loans that are managed by ED at that time.
People who are in the Public Service Loan Forgiveness (PSLF) program, have Direct or FFEL Program loans held by ED, or are on an income-driven payback (IDR) plan can get this change.
Because of this payment count change, some payments or months that were not previously counted toward loan forgiveness will now be.
For qualified borrowers, the end of their repayment term and the chance of getting their loans forgiven will get closer. Some people who borrow money will have their debts forgiven instantly. People who took out loans and paid more than they needed to could get the extra money back.
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The ED will look at every user account that has at least one Direct Loan or one FFEL Program loan. Eligible people will have their payment numbers updated automatically.
The payment count adjustment will count months in a repayment state no matter what kind of payments were made, the loan type, or the repayment plan. It will also count months toward IDR forgiveness if there have been 12 or more months of forbearance in a row or 36 or more months of forbearance in total.
PSLF Program Deadline 2024: When does the last day to apply for this class end?
Getting out of failure on a loan is good for people who are behind on their payments.
They should apply for a Direct Consolidation Loan by April 30, 2024, so they can get the most out of the change in the payment count.
Additional Key Student Loan Forgiveness Deadline: May 17th
In the meantime, the Biden administration released draft rules earlier this week that will create a whole new program to forgive student loans. There would be more than one way for 25 million people to get out of debt if the plan were put into action.
The public has 30 days from the date the draft rules were made public to give feedback, and the deadline is May 17. The Education Department said earlier this week that it “will carefully consider comments received and aims to finalize these rules in time to start delivering relief.” The administration thinks that this will happen by the fall.
