Comments on: The Department of Education Needs to Extend the One-Time Payment Count Adjustment Deadline

By: Michael P. Lux, Esq.

Michael P. Lux, Esq. — Thu, 27 Jun 2024 16:57:03 +0000

In reply to Linda. Excellent Questions! No, the recent SAVE plan rulings have nothing to do with the one-time adjustment. You do not need to be on an IDR plan to get the benefit of the one-time adjustment. However, you do have to have federally-held loans. If you have FFEL (sometimes called FFELP) loans, you will need to apply to consolidate those loans by June 30th to be eligible for the adjustment. Additionally, the value of the adjustment is that it increases your progress toward IDR forgiveness. If you are not on an IDR plan after the adjustment, you won't be making any additional progress toward forgiveness.

By: Linda

Linda — Thu, 27 Jun 2024 16:21:33 +0000

Do the latest SAVE plan rulings impact the payment count adjustment? The deadline to consolidate loans was extended from April to June 30, 2024 based on my understanding. Also, do I need to be on an IDR plan for this payment count adjustment?

By: Michael P. Lux, Esq.

Michael P. Lux, Esq. — Thu, 21 Dec 2023 18:23:04 +0000

In reply to Judy. Instead of thinking of a start date for repayment, think about it in terms of number of months. For example, 240 months instead of 20 years. By consolidating before the 4/30/24 deadline, he should get credit for his previous repayment efforts, and some forbearances and deferments as well. Whether it takes 20 or 25 years will depend on when the loans were borrowed and what type they were. This article on the SAVE plan breaks down those details. To get credit for forgiveness moving forward, he will have to be on an IDR plan. These plans include SAVE, PAYE, IBR, and ICR.

By: Judy

Judy — Thu, 21 Dec 2023 17:57:55 +0000

My son has 4, FFEL, commercially consolidated loans consisting of a mix of graduate and undergraduate loans. If he consolidates into a direct loan, what date is used for re-payment count toward forgiveness and will term be 20 or 25 years? He is at 18 1/2 years now, before any extra adjustments.
Also, would he still need to have a ibr plan as well? The current loan payment is lower than what I have calculated the Save plan payment to be as his income is slightly over 200,000.
Thank you

By: Michael P. Lux, Esq.

Michael P. Lux, Esq. — Wed, 20 Dec 2023 20:59:43 +0000

In reply to John.

You are absolutely right John. It has been extended like you said.

I’ll put a quick update at the top of the article to ensure there isn’t any chance of confusion. Thank you for taking the time to leave a message.

By: John

John — Wed, 20 Dec 2023 20:48:24 +0000

Has the one-time adjustment deadline been moved from 12/31/2023 to 4/30/2024? I read the blog from the department of education and am wondering if that is the case:

https://blog.ed.gov/2023/12/seven-things-to-know-about-the-student-loan-payment-count-adjustment/