This article was updated on 12/19/2023 as a result of the Department of Education’s (DOE) extension if the deadline from 12/31/2023 to 4/30/2024. References to the previous deadline have been changed to reflect the new deadline as a result of the DOE change that occurred on 12/18/2023.
## Student Loan Forgiveness: Urgent Deadline for FFEL and Parent Plus Loan Borrowers
April 30, 2024: Key Deadline for Student Loan Consolidation
April 30, 2024, is the new deadline to consolidate FFEL or Parent Plus loans into a Direct Consolidation Loan to remain eligible for the IDR One-Time Account Adjustment (OTA). The Department of Education (DOE) will continue adjusting student loan borrower repayment months upward throughout 2024, but only for Direct Loans or Direct Consolidation Loans. Borrowers with FFEL or Parent Plus loans must consolidate before April 30, 2024, to avoid missing out on potential total student loan forgiveness. Failure to consolidate on time could delay benefits for years or even decades.
On January 21, 2022, the U.S. Department of Education released a fact sheet titled Transforming Income-Driven Repayment, which laid the groundwork for what is now known as the IDR One-Time Account Adjustment (OTA). This adjustment ensures borrowers receive credit for repayment months from 1994 to the present, helping those affected by student loan servicer misconduct and system inefficiencies. Many long-term borrowers have discovered they had far fewer qualifying months in repayment than they should have due to these systemic failures.
How Many Months in Repayment Are Required for Forgiveness?
The number of months in repayment determines eligibility for student loan forgiveness under federal law. Borrowers typically need:
120 months (10 years) under Public Service Loan Forgiveness (PSLF)
240 months (20 years) under Income-Driven Repayment (IDR) for undergraduate loans
300 months (25 years) under Income-Driven Repayment (IDR) for graduate loans or Parent Plus loans (if consolidated)
Without an approved Total and Permanent Disability (TPD) claim or Borrower Defense to Repayment (BDR) claim, borrowers must meet these time-based criteria to qualify for forgiveness.
April 30, 2024: The Critical Consolidation Deadline
One of the most significant rules of the IDR One-Time Account Adjustment is the April 30, 2024 deadline. While the DOE will continue updating repayment months throughout 2024, borrowers must consolidate FFEL or Parent Plus loans into a Direct Consolidation Loan by April 30, 2024, to benefit from this adjustment. Even if the consolidation process takes months, applications submitted or postmarked by April 30, 2024, will be honored.
The Status of FFEL Loans in 2024
Although FFEL loans have not been issued since 2010, nearly 9 million borrowers still owe close to $9 billion as of December 17, 2023. There are two types of FFEL loans:
Federally Owned FFEL Loans
Commercially Held FFEL Loans
Both types can be consolidated into Direct Loans before the deadline to qualify for the IDR One-Time Account Adjustment.
Parent Plus loans are generally not eligible for income-driven repayment (IDR) plans unless they are consolidated. The April 30, 2024 deadline allows Parent Plus borrowers to qualify for at least one IDR program, making this a rare opportunity for parents with student loan debt.
How to Determine If You Have FFEL or Parent Plus Loans
If you:
Took out federal student loans before October 1, 2010, you likely have FFEL loans.
Took out or cosigned loans for a child, you likely have Parent Plus loans.
Many borrowers remain unaware of their loan types due to inconsistent disclosures from college financial aid offices and the passage of time. If you’re unsure, Hope Credit offers a free consultation to determine your loan eligibility and options. Contact Hope Credit here.
Since October 2021, hundreds of Hope Credit clients have had their loans forgiven through the Public Service Loan Forgiveness (PSLF) Waiver or the IDR One-Time Account Adjustment (OTA). Many of these clients have referred friends, family, and co-workers, leading to a growing wave of student loan relief.
If you are a Hope Credit client and work in public service, encourage your co-workers to check their PSLF eligibility. Likewise, if you know anyone over the age of 45 with student loan debt, they may qualify for OTA forgiveness. There is no downside to verifying eligibility. Contact Hope Credit today.
Key Takeaways
✅ April 30, 2024 is the deadline to consolidate FFEL or Parent Plus loans to qualify for the IDR One-Time Account Adjustment. ✅ The Department of Education will continue adjusting repayment months in 2024, but only for Direct Loans and Direct Consolidation Loans. ✅ Parent Plus loans can become eligible for IDR and forgiveness only if consolidated before the deadline. ✅ Borrowers should check their loan type and take action now to avoid missing out on student loan forgiveness.
