The Impending Deadline: Critical Student Loan Forgiveness Approaches

The Biden administration is implementing student loan forgiveness initiatives, and a critical deadline is approaching for borrowers. Under the IDR Account Adjustment initiative, borrowers can receive retroactive credit towards their student loan forgiveness term. While many borrowers will receive the credit automatically, others need to consolidate their loans through the federal Direct consolidation loan program by December 31, 2023, to avoid losing out on the benefits. This includes borrowers with commercially-managed non-Direct loans and those with multiple loans with different repayment histories. Parent PLUS borrowers should also consider consolidation to benefit from the student loan forgiveness adjustment.