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IDR Adjustment Update
IDR Adjustment
• Review and Credit for Non-Qualifying Months: The IDR adjustment allows the Department of Education (ED) to review borrowers' accounts and credit months that previously did not qualify towards IDR forgiveness. This is a significant benefit for those in repayment for at least 20 years.
• Exclusions and Consolidation Requirement: Borrowers with commercially held (private) Perkins Loans, FFEL loans, or HEAL Programs must consolidate their loans to be eligible for the IDR adjustment review by ED. These loans do not automatically qualify under the new adjustment rules.
• Temporary Rule on Consolidation: Normally, consolidating loans resets the repayment count to zero. However, under the updated temporary rules, borrowers can consolidate without losing their repayment history. They will receive credit for repayments and certain periods of forbearance and deferment back to their initial repayment start date.
• Extended Deadline for Consolidation: The deadline for loan consolidation to benefit from the full IDR payment count has been extended to June 30, 2024, as announced by ED in December 2023. This extension provides borrowers more time to take advantage of the IDR adjustment.
• Impact on PSLF Track: The IDR Adjustment will also benefit borrowers on the Public Service Loan Forgiveness (PSLF) track by increasing their payment count. This is done by crediting certain months of forbearance and deferment, aiding in quicker loan forgiveness for those in public service.
Sign up for a consultation with a SLD coach to see if you qualify for the IDR Adjustment: Click Here
Purchase our latest ebook to file a 20 year complaint or consolidate your loans (allow 24 hours to receive ebook): Click Here
Share these episode with a friend!!!
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By Dr. Sonia LewisIDR Adjustment
• Review and Credit for Non-Qualifying Months: The IDR adjustment allows the Department of Education (ED) to review borrowers' accounts and credit months that previously did not qualify towards IDR forgiveness. This is a significant benefit for those in repayment for at least 20 years.
• Exclusions and Consolidation Requirement: Borrowers with commercially held (private) Perkins Loans, FFEL loans, or HEAL Programs must consolidate their loans to be eligible for the IDR adjustment review by ED. These loans do not automatically qualify under the new adjustment rules.
• Temporary Rule on Consolidation: Normally, consolidating loans resets the repayment count to zero. However, under the updated temporary rules, borrowers can consolidate without losing their repayment history. They will receive credit for repayments and certain periods of forbearance and deferment back to their initial repayment start date.
• Extended Deadline for Consolidation: The deadline for loan consolidation to benefit from the full IDR payment count has been extended to June 30, 2024, as announced by ED in December 2023. This extension provides borrowers more time to take advantage of the IDR adjustment.
• Impact on PSLF Track: The IDR Adjustment will also benefit borrowers on the Public Service Loan Forgiveness (PSLF) track by increasing their payment count. This is done by crediting certain months of forbearance and deferment, aiding in quicker loan forgiveness for those in public service.
Sign up for a consultation with a SLD coach to see if you qualify for the IDR Adjustment: Click Here
Purchase our latest ebook to file a 20 year complaint or consolidate your loans (allow 24 hours to receive ebook): Click Here
Share these episode with a friend!!!