What is student loan consolidation? When is the deadline in 2024?
The window is fast closing for some student loan borrowers to be able to access debt forgiveness. Here’s the deadline for consolidating student loans.
The Biden administration has been working to provide student loan debt forgiveness to millions of Americans struggling to pay back the money they borrowed to get higher degrees. While the broad program to cancel up to $20,000 in federal student loan debt was thrown out by the US Supreme Court last year, new initiatives have been put in place.
The US Department of Education will be conducting a one-time adjustment this summer which could give eligible borrowers thousands of dollars in federal student loan debt relief. However, some may have to opt in by consolidating their federal loans into a Direct Loan, but you will have to move fast with the deadline quickly approaching.
What is student loan consolidation? When is the deadline in 2024?
Federal student loan borrowers will have until Tuesday 30 April to submit an application for consolidating their Federal Family Education Loan Program loans (FFELP), Perkins Loans, Parent Plus loans and other non-Direct Loans into a Direct Loan. By consolidating, or bundling, your loans you can simplify the task of repayment by getting rid of multiple payoff timelines, reducing your monthly payments to just one.
The process is a bit like refinancing your multiple loans and you may benefit from a lower fixed interest rate. Additionally, you may be eligible to enter an income-driven repayment plan like SAVE, “the most affordable student loan plan ever,” according to President Biden.
When you combine you federal student loans, you may qualify for immediate student loan forgiveness worth thousands of dollars, or depending on how long you have been making qualifying payment have your whole balance wiped clean. The Department of Education’s one-time adjustment will take place 1 July 2024.
In order to get started you should visit the Federal Student Aid ‘Consolidating Student Loans’ webpage. There you can get more detailed information on what it will entail as well as providing you with the official application form. There is no application fee and the process takes less than 30 minutes.