Extension Gives Time for More Borrowers to Join PSLF Track

Student loan borrowers who missed the deadline to take advantage of the IDR Account Adjustment just got some great news: the deadline has been extended through June 2024! The program was announced in 2022, and remains available for those in long-term repayment and borrowers working towards PSLF. The Department of Education hopes to have the Adjustment completed by September 2024, so any borrowers still needing to take action to qualify, should do so by June 30th. 

Who Qualifies and How?

The IDR Account Adjustment is a straightforward attempt to double-check the Dept. of Ed’s current accounting of borrower payments and is being completed for every federal loan borrower without their needing to apply. It offers some added benefits, however, for borrowers with certain types of loans and for those pursuing PSLF, if they satisfy a couple of requirements before the deadline. 

Simply put, Federal Student Aid is recounting how many payments each and every borrower made on their student loans. After the harrying barrage of servicer complaints and abuses over the last few years, they want to make sure that every payment is being properly counted and borrowers haven’t been paying longer than they should be. It also allows borrowers that had certain types of older loans—like FFEL, Perkins, or Health Education Assistance Loan (HEAL) loans—to take advantage of programs that benefit newer Direct Loans, like Public Service Loan Forgiveness.

How Do I Qualify for PSLF with the IDR Account Adjustment?

PSLF only benefits borrowers working full-time in the public service sector, such as your local government or a 501(c)(3) non-profit. After 10 years of repayment on an approved payment plan, the borrower’s Direct Loans are forgiven. If you don’t have Direct Loans, but have the types listed above, you can only qualify by consolidating them into a new Direct Consolidation Loan. Before you do, however, check with your student loan professional to make sure it’s the best choice, as you can’t un-consolidate them. 

The IDR Account Adjustment coincides with a lot of other changes for borrowers, especially those pursuing PSLF. With IDR recertification delayed until the fall, changes to servicer websites in process throughout the summer, and FSA taking over PSLF management, we’re glad to see that the Dept. of Ed. is giving more borrowers a chance to hop on the PSLF train. If you have questions about how any of these changes affect you, or if you’re interested in PSLF, give us a call and we’ll help steer you onto the track toward student loan freedom!