Student Loan Forgiveness Deadline Extended by Biden Administration; Here's What You Should Know!

By Madz Dizon

May 19, 2024 07:30 PM EDT

Biden Administration Cancels 10% of Borrowers’ Student Loan; Here’s Who’s Next!
An activist holds a cancel student debt sign as they gather to rally in front of the White House in Washington, DC, on August 25, 2022.
(Photo : STEFANI REYNOLDS/AFP via Getty Images)

The Biden administration has granted an extension to a crucial deadline for student loan borrowers seeking debt cancellation.

The US Department of Education has established April 30 as the deadline for consolidating student loans. The deadline has been extended until June 30.

Student Loan Forgiveness Extension

Consolidating student loans into a federal debt consolidation loan is a necessary step for graduates with private loans to be eligible for forgiveness programs.

By converting FFELP, Perkins, and other non-Direct Loans into Direct Loans, you can potentially improve your financial situation. 

Additionally, it has the capability to consolidate multiple loans with varying payoff timelines into a single monthly payment with a unified due date.

READ NEXT: SNAP Benefits 2024: Storm-Affected Residents to Receive Replacement Applications, Extended Deadline

Consolidate Federal Loans Online

Consolidating your federal student loans is a convenient option available to you on 

Please ensure that your application is submitted before midnight local time on June 30 in order to meet the deadline. Consolidating after this date would result in missing out on certain benefits.

According to CNET, to complete the application, you will be required to provide your Federal Student Aid ID, along with personal, financial, and loan information. 

According to the FSA website, it should take around 30 minutes to finish the loan consolidation application. Based on Kantrowitz, the consolidation process can take up to 60 days after you submit your application. 

Meanwhile, you may notice that your student loan payment count decreases to zero. No need to worry if this occurs. It simply indicates that your adjustment count is currently being processed.

Even if you consolidate your loans after the June 30 deadline, you can still receive credit for previous payments made on direct loans. 

However, you may not receive as much recognition. Instead, your payment count will be calculated using a weighted average.

READ MORE: Boeing Supplier Spirit AeroSystems to Layoff Over 400 Workers Following Production Decline, Days After Whistleblower's Sudden Death

© 2024 VCPOST, All rights reserved. Do not reproduce without permission.

Join the Conversation

Real Time Analytics