A crucial deadline is coming up for borrowers with commercially held federal loans and those who were in delinquent status before the pandemic payment pause.
Borrowers with commercially held federal loans have until Dec. 31 to consolidate their loans to qualify for the one-time payment adjustment, which can help them get closer to or achieve a discharge through their income-driven repayment (IDR) plan.
For borrowers in default, Dec. 31 is also the deadline to enroll in the Fresh Start program to get in good standing to be eligible for the one-time payment adjustment and to qualify for an income-driven repayment plan that could lower their monthly payment.
These borrowers must take the following steps by the end of the year.
Read more: How to apply for IDR forgiveness
A student wears a money lei, a necklace made of US dollar bills, at a graduation ceremony in Pasadena, Calif., on June 14,…
