Strike That; Reverse It.

You may recall from our last email that the consolidation deadline of 4/30 had passed, but partial retroactive credit is still available for borrowers who consolidate non-Direct and loans with different PSLF counts by 4/30.

Well, as the venerable Willy Wonka might say… Strike that; reverse it.

The deadline has been extended again to be aligned with the deadline for the final IDR “account adjustment” on June 30^th of this year. As a reminder, the final IDR adjustment is in itself an extension of the “PSLF Limited Waiver” from October 2021 that provided retroactive credit to borrowers who worked full-time in a qualified role, but were in forbearance or a repayment plan that didn’t qualify for PSLF, all the way back to 2007.

Here’s more detail on the IDR adjustment. It’s important to note that come July 1^st, this retroactive credit will no longer be available. Schedule a 30-minute support session with us at a 25% discount if you’d like to review your profile and make certain ALL past qualifying employment is properly documented!

In other news, student loan interest rates for the 2024/25 academic year are hot off the press. So hot, in fact, that students – particularly in graduate schools – will feel the burn all the way through next July. Undergrad loans will be set at 6.53% beginning July 1st. Graduate students can max out Stafford loans at 8.09%, after which only GradPLUS loans are available.. at 9.09%.

Ouch. That said, as we will continue to update and remind you and your peers, federal student loans have multiple options for relief today, and proper use of Income-Driven Repayment plans can eliminate accruing interest when monthly payments don’t dip into principal. Without relief, graduates next year will be paying the highest rates we’ve seen in over 12 years!

About Author

Jason DiLorenzo

Jason is the Founder of BenElevate, an early stage fintech company working to address the student debt crisis by bringing to bear tools, expertise, and bespoke solutions to streamline student debt management for borrowers and employers.