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Do This by April 30 if You Want Loan Forgiveness This Year

In the past, consolidation could reset your payment counts to zero for IDR and PSLF forgiveness. That’s no longer always the case.

If you meet the April 30 consolidation deadline, your consolidation loan will get credit for the oldest underlying loan. For example, if you’ve been repaying a commercially held FFELP loan for 18 years, and a direct loan for five years, your new consolidation loan would get 18 years of IDR forgiveness credit after the adjustment.

“The most common example is somebody who goes to undergraduate, gets loans for undergraduate, then they take a break and go into repayment. And then years later, they go back for their graduate degree and they take out new loans,” says Betsy Mayotte, president and founder of The Institute of Student Loan Advisors.

Student loan forgiveness may come for 380,000 borrowers, Biden says. How to know if you qualify

If you’re not enrolled in a program that leads to student loan forgiveness, you can find “great information” on the U.S. Department of Education’s website, Studentaid.gov, about the different opportunities, said Betsy Mayotte, president of The Institute of Student Loan Advisors, a nonprofit.

Mayotte said students should “read all the things. They can also contact their loan servicer to talk about their potential eligibility and steps they may have to take to qualify.”

When will your student loan be forgiven?

“If you get any emails that say they can get you student loan forgiveness for a fee or promise forgiveness is a scam. Look up your loan servicer number, call them directly, and ask them any questions you may have,” said Betsy Mayotte, President of The Institute of Student Loan Advisors.

The place to go if you have a question about your loan, who your servicer is, or what your payment is StudentAid.gov.

Mayotte says you should expect to hear about monthly emails going out that automatically forgive loans for those borrowers who are enrolled in the SAVE plan, have made at least 10 years of payments, and borrowed $12,000 or less originally.

Women with student loan debt face ‘multiple financial pressures,’ expert says. These tips may help with repayment

“We find that women borrowers tend to have multiple financial pressures that contribute to their student loan struggles,” said Betsy Mayotte, president of The Institute of Student Loan Advisors, a nonprofit that helps borrowers navigate the repayment of their debt.

“Over 63% of the borrowers that reach out to us for advice are women,” Mayotte added.

How to figure out when (and if) you’ll get student loan forgiveness

If you’re not enrolled in a program that leads to student loan forgiveness, you can find “great information” on the U.S. Department of Education’s website, Studentaid.gov, about the different opportunities, said Betsy Mayotte, president of The Institute of Student Loan Advisors, a nonprofit.

Mayotte said students should “read all the things. They can also contact their loan servicer to talk about their potential eligibility and steps they may have to take to qualify.”