Education Department provides an update on student loan forgiveness eligibility

 The Biden administration has implemented the IDR Account Adjustment, a program aimed at improving access to key federal student loan forgiveness initiatives. 

 Under this program, the Education Department will make a one-time adjustment to borrower accounts that will be counted towards Income Driven Repayment (IDR) forgiveness.

 This includes any time spent in a repayment status, regardless of the payments made or the type of federal loan,

 as well as any months of consecutive forbearance or total forbearance of at least 12 or 36 months, respectively.

 As per the most recent Federal Reserve information, US borrowers have about $1.75 trillion in educational loans. The greater part of that, some $1.62 trillion, is with the central government

  the program covers any months spent in economic hardship or military deferments after 2013, any months spent in any deferment prior to 2013, and any time in repayment on earlier loans prior to consolidation.

 As per the most recent Federal Reserve information, US borrowers have about $1.75 trillion in educational loans. The greater part of that, some $1.62 trillion, is with the central government

Direct loan borrowers will automatically see these adjustments by July 2023, while non-Direct loan borrowers, including FFELP borrowers,

 As per the most recent Federal Reserve information, US borrowers have about $1.75 trillion in educational loans. The greater part of that, some $1.62 trillion, is with the central government

 will need to apply for a Direct Consolidation Loan by May 1, 2023 to receive the full benefits of the one-time account adjustment. 


 U.S. Secretary of Education Miguel Cardona praised the temporary changes made by the Biden-Harris team, 

stating "I'm incredibly proud [of] the Biden-Harris team's temporary changes" to improve access to federal student loan forgiveness programs. 

 Read More Information Related Student Loan Forgiveness Application

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