The Student Debt Crisis Center, a nonprofit organization solely focused on ending the student debt crisis, has announced some important updates from the U.S. Department of Education regarding student loan cancellation for borrowers. Those who have been in repayment of their federal loans for 20 or 25 years under Income-Driven Repayment plans may be eligible for automatic forgiveness through the IDR Account Adjustment.
The SDCC wants to make borrowers aware that they must apply to consolidate by April 30, 2024, to take advantage of this opportunity.
The Department of Education will cancel loans as borrowers reach these milestones without the need for additional paperwork. This one-time adjustment applies to direct loans and federally managed loans under the Federal Family Education Loan Program.
If a borrower has Federal Family Education Loan Program loans held by commercial lenders, or Perkins loans not held by the Department of Education, there is still a benefit of consolidation. If unsure about your loan type, log into StudentAid.gov and click “View Details” in the “MyAid” section. Scrolling down will provide a breakdown of your loans.
Borrowers who have been in repayment for less than 20–25 years may still be able to maximize payment credits through this adjustment.
If interested in enrolling in an IDR plan to lower monthly student loan payments, visit this link: https://studentaid.gov/idr/.
Since 2014, the SDCC has hosted student debt workshops to help people navigate their student loan debt while advocating to change the laws and cancel student debt. To learn more, visit studentdebtcrisis.org.
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