Key Takeaways

The Department of Education has extended the student loan consolidation deadline to June 30, providing an opportunity for borrowers to maximize their debt relief benefits. This extension allows individuals with Perkins Loans, Parent Plus loans, or commercially-managed Federal Family Education Loans to consolidate them into a new Direct Loan.

Consolidating federal student loans can help borrowers take advantage of forgiveness options and qualify for more relief programs. By combining multiple loans into one with a fixed interest rate, borrowers can streamline their payments and potentially lower their monthly payments. Additionally, consolidating loans can help borrowers qualify for forgiveness sooner and ensure they receive credit for past payments.

For those unsure about their eligibility for student loan forgiveness, consolidating federal loans can still be beneficial. It can lower monthly payments, lock in a fixed interest rate, and potentially lead to debt relief sooner. However, it’s essential to weigh the benefits of consolidation against any current discounts or benefits on existing loans.

To consolidate federal student loans, borrowers can apply online at StudentAid.gov before the June 30 deadline. The application process typically takes about 30 minutes, and once approved, it can take up to 60 days to process the consolidation. Missing the deadline may result in a reset of payment counts or a weighted average calculation, but borrowers can still access debt relief programs.

Overall, consolidating federal student loans before the deadline can help borrowers maximize their debt relief benefits and streamline their repayment process. Don’t miss out on this opportunity to take control of your student loan debt and potentially qualify for forgiveness sooner.