HomeFinance NewsPersonal financeStudent Loan Relief: Act Now to Consolidate and Unlock Forgiveness!

Student Loan Relief: Act Now to Consolidate and Unlock Forgiveness!


A key deadline for student loan forgiveness consolidation is just days away. Here’s what to know


Student loan borrowers who have been counting on forgiveness should take note of an upcoming deadline.

By April 30th, those seeking loan cancellation can request a loan consolidation that could expedite the forgiveness process.

Income-driven repayment plans allow borrowers to pay varying monthly amounts based on their income.

Traditionally, borrowers have had multiple loans with varying forgiveness timelines.

However, the Biden administration’s temporary offer of loan consolidation allows borrowers to combine their loans, potentially qualifying for forgiveness sooner.

For example, someone who graduated college in 2004 and returned for a graduate degree in 2018 could potentially have their loans forgiven under the 20-year timeline even though they would normally have to wait longer.

The consolidation process does not increase monthly payments since they are determined by earnings rather than the total debt.

The new interest rate will be an average of the rates across all loans.

To consolidate loans, borrowers can visit StudentAid.gov or contact their loan servicer.

Before doing so, it’s advisable to obtain a complete payment history for each loan to ensure accurate credit.

If there are any discrepancies with the payment count, borrowers can talk to their loan servicer or file a complaint with the Federal Student Aid unit.

There should never be any fees associated with loan consolidation, so beware of scams.

  • Overall sentiment: positive
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    “For now, the Biden administration temporarily offers borrowers the chance to combine their loans and get credit going back as far as their first loan payment on the oldest of their original loans in that bundle.”

    “Consolidating your loans shouldn’t increase your monthly payment, since your bill under an income-driven repayment plan is based on your earnings and not your total debt, Kantrowitz said.”


    “As a result, it’s common for a borrower to be on multiple timelines for forgiveness, one for each of those loans.”

    “Usually, a student loan consolidation restarts a borrower’s forgiveness timeline, making it a terrible move for those working toward cancellation.”

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