Biden’s Student Loan Deadline Approaching: How Borrowers Can Benefit

Are you a student-loan borrower looking for some relief from your debt? If so, you may want to pay attention to the upcoming deadline of June 30 to take advantage of President Joe Biden’s one-time account adjustments.

These adjustments, set to be fully implemented in September, are designed to evaluate borrowers’ accounts and ensure their payments are up to date. This could bring borrowers closer to the loan forgiveness promised through their repayment programs or even automatically grant them debt relief.

However, there is a catch – only borrowers with federal direct loans or federally held loans in the Federal Family Education Loan program are eligible for these adjustments. If you do not have qualifying loans, you will need to consolidate into one of these programs by the June 30 deadline. The consolidation process can take at least 60 days, so it’s important to act quickly.

The good news is that applying for consolidation is a relatively quick and easy process, typically taking less than 30 minutes to complete. By consolidating your loans, you could be on your way to receiving the benefits of the one-time account adjustments and potentially getting closer to debt relief.

The Education Department has already provided debt relief to nearly 1 million borrowers through these adjustments, canceling $7.7 billion in student debt for 160,500 borrowers. With one in every 10 federal borrowers now approved for debt relief, it’s clear that these measures are making a significant impact.

In addition to the one-time account adjustments, the Education Department is also enacting relief for borrowers on the new SAVE income-driven repayment plan, as well as working on a broader student-loan forgiveness plan that aims to benefit over 30 million borrowers. Despite legal challenges and threats, the department is committed to providing relief in accordance with the law and Supreme Court decisions.

So, if you’re a student-loan borrower in need of some relief, don’t miss the opportunity to take advantage of these one-time account adjustments before the June 30 deadline. Consolidate your loans and see how these measures could bring you closer to debt relief.