If you’re a student loan borrower—or know someone who is—they may be able to reduce what they owe, or even see their loan forgiven.

The U.S. Department of Education (ED) will be giving student loan borrowers "extra credit" for repayment under its Income Driven Repayment (IDR) program dating back to July 1994.

However, some borrowers must consolidate their loans into a Direct Consolidation Loan to receive the most credit. The loans that must be consolidated are:


  • Parent PLUS loans
  • Commercially-managed Federal Family Education Loan (FFEL) Program loans
  • Perkins Loans
  • Health Education Assistance Loan (HEAL) Program loans

Important: Loan consolidation must occur before April 30, 2024.

Borrower action plan:

1. Learn if your loan must be consolidated by contacting ED at 800-433-3243 or by visiting studentaid.gov.


2. Apply for consolidation at https://studentaid.gov/loan-consolidation before April 30.


3. Enroll in an IDR plan at https://studentaid.gov/idr/ to continue earning credit toward loan forgiveness after April 30.

For more information, click here.
 

Consumer Action has been a champion of underrepresented consumers nationwide since 1971. A non-profit 501(c)(3) organization, Consumer Action focuses on consumer education that empowers low- and moderate-income and limited-English-speaking consumers to financially prosper. It also advocates for consumers in the media and before lawmakers to advance consumer rights and promote industry-wide change. Website: www.consumer-action.org.

© 2024

Contact Us

Consumer Action
57 Post Street, Suite 611
San Francisco, CA 94104
[email protected]
You are receiving this email because you signed up for alerts from Consumer Action.
Click here to unsubscribe from this mailing list.