{"id":1580,"date":"2023-04-28T19:44:16","date_gmt":"2023-04-28T23:44:16","guid":{"rendered":"https:\/\/ifintechworld.com\/news\/to-qualify-for-student-loan-forgiveness-under-adjustment-do-these-things-says-education-department\/"},"modified":"2023-04-28T19:44:17","modified_gmt":"2023-04-28T23:44:17","slug":"to-qualify-for-student-loan-forgiveness-under-adjustment-do-these-things-says-education-department","status":"publish","type":"post","link":"https:\/\/ifintechworld.com\/?p=1580","title":{"rendered":"To Qualify For Student Loan Forgiveness Under Adjustment, Do These Things, Says Education Department"},"content":{"rendered":"
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The Biden administration has released detailed new guidance for the IDR Account Adjustment, a temporary initiative that can advance a borrower\u2019s progress towards student loan forgiveness under Income-Driven Repayment, or IDR, plans.<\/p>\n

IDR plans, which tie a borrower\u2019s monthly student loan payments to their income and family size, can result in a discharge of any remaining unpaid balance after 20 or 25 years in the program. But IDR plans have historically been complicated for borrowers to navigate, and both the government and its contractors have poorly administered the IDR system for years, according to consumer advocates.<\/p>\n

The IDR Account Adjustment, first announced last year, is designed to remedy these longstanding issues by allowing borrowers to receive retroactive credit toward IDR student loan forgiveness terms for periods that otherwise would not have counted. This includes most past periods of repayment (including periods before consolidation), as well as some prior periods of deferment and forbearance. Borrowers who receive enough IDR credit to reach the threshold of student loan forgiveness will have their balances discharged. Others will receive a head start that will accelerate their progress \u2014 in some cases, dramatically \u2014 toward eventual loan forgiveness.<\/p>\n

The Education Department will be implementing the IDR Account Adjustment automatically through 2024. Some borrowers do not have to take any action to qualify. But others do \u2014 either to qualify for student loan forgiveness or to maximize the available benefits. And since the program is temporary, there are deadlines.<\/p>\n

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Here\u2019s what borrowers should know.<\/p>\n

Consolidation To Qualify For Student Loan Forgiveness Under IDR Account Adjustment<\/h2>\n

Borrowers who already have government-held federal student loans \u2014 which includes all Direct-program federal student loans as well as some government-owned FFEL-program loans \u2014 may not have to consolidate. The Education Department will automatically apply the benefits of the IDR Account Adjustment for all government-held federal student loans. However, some borrowers will need to consolidate their loans:<\/p>\n