As President Joe Biden moves forward with student loan forgiveness plans, there are a couple of important dates to remember for those who are eligible for income-driven repayment (IDR) loan forgiveness.
An IDR plan bases your monthly payment on your income and family size. If you repay your loans under an IDR plan, any remaining balance on your student loans will be forgiven after you make a certain number of payments over 20 or 25 years.
To take advantage of those plans, some borrowers must consolidate their loans through the federal Direct loan program.
You can learn if you need to consolidate your non-Direct loans by clicking here, but you are facing a deadline – April 30 -- and need to get that done by then to benefit from the adjustment.
According to the DOE, the updated IDR application is now available and includes the option to enroll in the new Saving on a Valuable Education (SAVE) Plan.
Note that:
- If you were on the REPAYE Plan, you’ve been automatically enrolled in the SAVE Plan. There is no need to reapply or request to change your plan.
- If you’re already on an IDR plan, check to see if you’re on the REPAYE Plan by logging in to StudentAid.gov and going to your My Aid page. There, you can scroll down and view your loans. Each loan will list a repayment plan.
- If you’re on a different repayment plan, you can enroll in the SAVE Plan. If you don’t have a StudentAid.gov account, create an account now.
The second date you need to remember is July 1. The Department of Education expects to end its IDR Account adjustment program on that day.
The DOE said, “When we implement the adjustment, it will automatically be applied to all Direct loans and FFEL Program loans that are managed by ED at that time.”