(NEXSTAR) – Student loan borrowers have until the end of Tuesday to qualify for a program that could help them pay down their debts.
To take advantage of the one-time “adjustment,” federal loan borrowers first must submit a loan consolidation application by April 30, 2024. If you decide to consolidate your loans into a Direct Consolidation Loan, you can do so for free.
For people with multiple student loans, consolidation converts them into one monthly bill with a fixed rate. This one-time adjustment is meant to show a more accurate payment count for student loan borrowers.
The payment count adjustment will look at time in repayment, deferment, forbearance or economic hardship, among other factors.
Which types of loans need to be consolidated?
Borrowers with these types of loans must consolidate first to take advantage of this one-time adjustment:
- Commercially managed Federal Family Education Loan (FFEL) loans
- Parent PLUS loans
- Perkins loans
- Health Education Assistance Loan (HEAL) Program loans
You can learn more about the one-time adjustment at studentaid.gov.
How do I apply to consolidate my loans?
You can apply to consolidate your loans at studentaid.gov/loan-consolidation.
The consolidation process typically takes around 60 days to complete. Once you consolidate your loans, you will be eligible for the adjustment.
The Education Department is currently adjusting borrowers’ accounts and expects to finish by July 1, which is when borrowers can expect to find out if they will receive loan cancellation or credit.
The Associated Press contributed to this report.