Just a quick ICYMI; there is an important deadline on the horizon for federal student loan borrowers!
The What:
Borrowers who are looking for either a lower monthly payment, loan forgiveness, or both, have until April 30th 2024 to consolidate their loans. By consolidating before the deadline (or at least having their application submitted) they will be able to take advantage of a new policy! Essentially the date of their oldest loan payment start-date will be used for the calculation for forgiveness eligibility. Meaning, forgiveness may be in reach like never before!
The Why:
Previously, loan consolidation “reset the clock” on loan-forgiveness eligibility in a negative way, but right now and through the end of April, this new policy overrides that. For example, if a borrower has multiple federal student loans across different dates, such as from undergrad and graduate school, the forgiveness eligibility will now be calculated on how many years the borrower has been paying on their oldest loans, the ones from undergraduate. Since we now have new opportunities for forgiveness at 10, 20, or 25 years of payments, some borrowers may be eligible for forgiveness as soon as they consolidate!
Another good reason so think about consolidating? Consolidation of loans is also required for borrowers to reap the benefits of Income Driven Repayment (IDR) plans like Saving On A Valuable Education (SAVE) that are new to the scene, based on the borrower’s discretionary income, and have been saving borrower’s tons of money. Many borrower’s are finding that they are eligible for a $0/month payment, meanwhile interest has been regulated in a way that it will not grow faster than loan payment amounts–all good things for borrower’s.
The What’s Next:
Apply for consolidation and take advantage of these benefits, as long as your application is submitted by April 30th!
Need more help figuring all of this out? The Institute for Student Loan Advisors (TISLA) offers free, fair, student debt guidance.
How good would it feel to lower, or completely eliminate, that student loan payment?
Unlocking Abundance 