Student Loan Forgiveness Opportunity Is Almost Over—Apply Now – Forbes Advisor – Technologist

The deadline is fast approaching for borrowers to make sure they qualify for student loan forgiveness.

Student loan borrowers with several types of commercially managed student loans have until April 30 to consolidate them and take advantage of the one-time payment count adjustment this summer. The original deadline to consolidate was December 31, 2023, but the Department of Education extended the due date late last year.

The payment count adjustment gives student loan borrowers in income-driven repayment (IDR) and Public Service Loan Forgiveness (PSLF) programs credit for payments that should have counted toward loan forgiveness.

Loans that have consistently been in repayment for 20 years or more may qualify for immediate forgiveness.

IDR plans reduce your monthly payments based on your income and family size. These plans allow you to pay between 10% and 20% of your monthly earnings. Your payment may be as low as $0 a month.

How Can I Qualify for IDR Forgiveness?

Your eligibility for IDR loan forgiveness is based on the number of years you’ve been in repayment. Your debt may be forgiven after 20 or 25 years of repayment history. You may even receive a refund if you made qualifying payments that exceed the forgiveness period.

Here’s what counts toward the 20- or 25-year requirement, according to the Education Department:

• All months in repayment status regardless of loan type or repayment plan
• 12 or more months of consecutive forbearance or 36 months of cumulative forbearance
• Any time spent in economic hardship or military deferments after 2013
• Any repayment time before consolidating loans

IDR forgiveness is only available for loans managed by the Department of Education. Borrowers must have Direct Subsidized loans, Direct Unsubsidized loans and federally managed Federal Family Education Loan (FFEL) program loans.

You must consolidate your loans into a Direct Consolidation Loan to qualify for IDR forgiveness if you have any of the following loan types:

If you have Parent PLUS loans with at least 25 years in repayment, you won’t need to consolidate to receive forgiveness.

If you are unsure about the type of loan you have, you can find out by logging in to StudentAid.gov and going to your “Loan Breakdown” menu.