IDR Account Adjustment

[MelaNix12]

https://studentaid.gov/announcements-events/idr-account-adjustment

Anyone know anything about this?

"More than 3.6 million William D. Ford Federal Direct Loan (Direct Loan) Program borrowers will receive at least three years of credit toward loan forgiveness, and many will see their loans forgiven automatically..."

Does this mean that anyone who is still under an IDR Plan will get up to an additional 3 years of credit (as long as they have Direct Loans)?

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[gwarm01]

Read the FAQ in that link to see if you qualify. There are specific circumstances that didn't qualify before that now do, you don't get just a blanket 3 year boost.

 

[MelaNix12]

When I read the FAQ it said "The one-time account adjustment will be applied to all Direct Loans..."

 

[gwarm01]

When I read the FAQ it said "The one-time account adjustment will be applied to all Direct Loans..."

It applies to all Direct Loans, but you only get credit for months that meet certain criteria.

The account adjustment will count time toward IDR forgiveness, including

• any months in a repayment status, regardless of the payments made, loan type, or repayment plan;
• 12 or more months of consecutive forbearance or 36 or more months of cumulative forbearance;
• any months spent in economic hardship or military deferments in 2013 or later;
• any months spent in any deferment (with the exception of in-school deferment) prior to 2013; and
• any time in repayment (or deferment or forbearance, if applicable) on earlier loans before consolidation of those loans into a consolidation loan.