January 09, 2024
Critical Student Loan Update
Our endorsed partner Cambridge Credit Counseling offers a student loan update after the U.S. Department of Education's recent announcement.
On 12/18/23, the U.S. Department of Education announced the extension of the deadline to consolidate federal student loans to receive the full benefit of the current IDR Adjustment from 12/31/23 to 4/30/24.
What does this mean for federal student loan holders? If you have older loans that were issued through the Federal Family Education Loan program (usually abbreviated "FFELP" on your studentaid.gov dashboard), you must consolidate those loans to receive full retroactive credit for all payments made to date.
There is also a benefit for all loan holders who took out federal loans several years apart. By consolidating before the 4/30/24 deadline, your new consolidation loan will be credited with the payment count of the loan that you included with the highest number of payments. (For example, if you consolidate two loans, one with 104 payments and a second loan with just 55 payments, the resulting consolidation loan will be credited with 104 payments.)
Click here for information about student loan assistance or to attend a NYSUT Student Loan Workshop.