Enroll in an IDR planįederal student loan borrowers will need to start making payments again this fall. If you consolidate loans that were in repayment for different periods of time, the new consolidation loan gets the maximum amount of IDR credit that accrued among the loans, Taylor explains. To check the types of loans you have and start the consolidation process, log in to your Federal Student Aid account and start a direct loan consolidation application. Health Education Assistance Loan (HEAL) Program loans. These types of loans must be consolidated to receive IDR credit if they don’t reach the forgiveness threshold:Ĭommercially managed FFEL Program loans, i.e., those held by companies like Navient. Consolidate your loans if necessaryīorrowers with certain types of loans will need to consolidate them into direct loans by the end of 2023 to receive the account adjustment. If you want to benefit from the account adjustment to reach loan forgiveness more quickly, you must sign up for an IDR plan. The account adjustment will be automatic for most borrowers, but some borrowers need to take an extra step before the end of 2023. How to benefit from the account adjustment You won’t earn IDR credit for any months you skip payments during the 12-month student loan on-ramp. Once student loan payments resume in October, only full, on-time payments under an IDR plan will count toward the forgiveness finish line. Past months spent in default will generally not be included in the recount, though borrowers who enroll in the temporary Fresh Start program to get out of default will get IDR credit from March 2020 through the date they leave default. 1, 2013.Īny months in repayment, forbearance or a qualifying deferment before a loan consolidation.Īny months spent in COVID-19-related forbearance. Time spent in forbearance, either periods lasting 12 or more consecutive months or a cumulative 36 or more months.Īny month spent in deferment, other than in-school deferment, before 2013.Īny month spent in economic hardship or military deferments on or after Jan. The type of repayment plan doesn’t matter. The adjustment will include the following past periods, through August 2023, toward the number of monthly payments needed to reach forgiveness:Īny month a borrower was in repayment, even if the payments were late or partial. For detailed information, including descriptions of specific forbearance or deferment periods, request your account history from your servicer. Log in to your Federal Student Aid account at to see how long you’ve been in repayment. Generally, borrowers get IDR forgiveness after 20 or 25 years on an IDR plan, or 240 or 300 monthly payments, which are capped at a certain percentage of their income. To find out how much credit toward IDR forgiveness you’ll receive under the one-time IDR account adjustment, you can tally past payments yourself. The Education Department has not given an exact date yet. When will the IDR adjustment happen if I don’t get automatic forgiveness?īorrowers who receive IDR credit under the account adjustment - but not enough to automatically qualify for forgiveness - will see their payment count updated sometime in 2024. For borrowers who’ve been in repayment for less than 20 or 25 years, here are answers to questions about the IDR account adjustment, and steps they can take to get the most out of it.
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