Deadline Extended For Non-Federally Held FFEL Loan Consolidation For Payment Count Readjustment

I wanted to provide a summary of the Department of Education’s recent announcement regarding an extension of the deadline for student loan consolidation. This policy change aims to ensure borrowers properly get credit toward income-driven repayment (IDR) forgiveness and Public Service Loan Forgiveness (PSLF) programs.

The key points are:

- Borrowers now have until June 30, 2024 to consolidate their loans. This is an extension from the previous April 30 deadline. Consolidating loans allows borrowers to get credit for payments made on previous non-consolidated loans.

- In September 2024, borrowers will see an adjusted count of their progress toward forgiveness programs that fixes issues where borrowers were not getting proper credit previously.

- Borrowers with commercially held Federal Family Education Loans (FFEL) or Perkins loans need to consolidate into the federal Direct Loan program by June 30, 2024 to benefit.

This policy aims to rectify problems borrowers faced in getting accurate information and credit toward forgiveness programs.

Please contact my office if you need assistance understanding how this announcement may impact your student loans. I'm here to help explain the details and ensure you take any necessary action before the June 30 consolidation deadline if needed. Student loan rules can be complex, but I'm committed to helping you navigate policies to secure the result you deserve.