Consolidate FFEL Loans by April 30, 2024 for Student Loan Forgiveness
Public Service Loan Forgiveness Program (PSLF)
Time-Sensitive Opportunity for Student Loan Consolidation
The Biden-Harris Administration has announced an extension for students with privately owned FFEL Program Loans to consolidate their loans into the Direct Loan Program by April 30, 2024. This consolidation is necessary to qualify for the Public Service Loan Forgiveness (PSLF) Program.
PSLF Program Eligibility
The PSLF Program offers loan forgiveness to individuals who work in public service jobs, such as teachers, nurses, and government employees. To qualify, borrowers must have made 120 monthly payments under a qualifying repayment plan.
Currently, only borrowers with Direct Loans are eligible for PSLF. However, the recent announcement allows borrowers with FFEL Loans to consolidate their loans into Direct Loans, making them eligible for PSLF.
Benefits of Consolidation
Consolidating FFEL Loans into Direct Loans not only makes borrowers eligible for PSLF but also provides other benefits, such as:
- Lower interest rates
- Extended repayment terms
- Access to income-driven repayment plans
How to Consolidate
To consolidate FFEL Loans into Direct Loans, borrowers can visit the Federal Student Aid website (studentaid.gov) and complete the Direct Loan Consolidation Application. The process typically takes 60 to 90 days.
Additional Student Loan Relief
The Biden-Harris Administration has also announced $74 billion in additional student loan debt relief for 277,000 borrowers. This relief includes cancellation of loans for disabled borrowers and forgiveness of $20,000 in federal student loans for borrowers who received Pell Grants.
Students and borrowers are encouraged to visit studentaid.gov for more information and to take advantage of these time-sensitive opportunities.
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