Borrowers who have Direct loans or consolidate FFEL or Parent PLUS loans into a Direct Consolidation loan by July 2024 are eligible for the Account Adjustment.
Throughout 2024, the Department of Education will conduct a one-time account adjustment to help borrowers count more periods of time towards forgiveness. These adjustments will help you get credit for more past payments, putting you closer to forgiveness. The adjustment will award credit for the following:
- 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
- Months spent in economic hardship or military deferments after 2013
- Months spent in any deferment (with the exception of in-school deferment) prior to 2013
- Any time in repayment on earlier loans prior to consolidation
- If you consolidate loans with different payment counts, the highest number will be applied to your new consolidation loan. For example, if you consolidate a loan with 100 payments and a loan with 50 payments, the new consolidation loan will be credited with 100 payments. Because of this, it may be beneficial for some borrowers to consolidate all of their loans, especially if you have loans from different time periods or with differing payment counts.
While these adjustments will be automatic for most people, you need to make sure you have the right loans to be included in these one-time adjustments. Savi recommends borrowers who have non-Direct loans (FFEL or Parent PLUS loans), and borrowers whose loans have varying repayment histories and who want to maximize their IDR or PSLF credit, to consolidate their loans via the federal Direct loan program by June 30, 2024. If you do not consolidate by this deadline, you will not be included in the adjustments and will miss out on counting more payments toward forgiveness.
These adjustments will help borrowers get closer to forgiveness under both IDR Forgiveness and PSLF. After the adjustments, any borrower who has accumulated time in repayment of at least 20 or 25 years will receive automatic IDR forgiveness, and will be notified by ED if they qualify. Borrowers pursuing PSLF can receive credit by submitting an Employment Certification Form that overlaps with the adjusted time periods.
Frequently Asked Questions
Do I need to consolidate?
You only need to consolidate if you have commercially-held FFEL Loans, non-Direct Loans (like Parent PLUS Loans), or if you have loans with differing payment counts.
How do I know what type of loans I have?
In your Savi application, you can sync your loans with your account. Savi will identify the types of loans you have, and let you know if consolidation is needed. To learn how to sync loans, click here.
When is the deadline to consolidate?
You MUST submit a consolidation request by April 30, 2024. As long a you submit your request by this date, you will be included in the adjustments even if your consolidation has not fully finished yet. If you are required to consolidate and do not submit a consolidation request before this date, you will not be included in the adjustments.
Did the consolidation deadline change?
Yes, previously the deadline was December 31, 2023. Borrowers now have until June 30, 2024 to consolidate and be included in the account adjustments.
Will consolidating reset my payment count?
When you consolidate, your payment count will be temporarily reset to zero. However, as long as you submit your request before June 30, 2024, your payment count will be restored/updated once the adjustments take place in 2024.
How do I consolidate my loans?
Consolidation requests are submitted through the Student Aid website. For a detailed step by step guide on consolidating, go here: https://bysavi.zendesk.com/hc/en-us/articles/24061341514515-How-Do-I-Consolidate-My-Loans
Can I get credit even if I haven’t been on an IDR?
Yes, you will get credit for all past periods of repayment, even if you weren’t enrolled in an IDR.
How does the adjustment work with forgiveness?
These adjustments will help all borrowers get closer to forgiveness under IDR Forgiveness, which forgives your remaining balance after 20 or 25 years of payments. For borrowers pursing PSLF, they can count these past periods by submitting an Employment Certification Form that overlaps with the adjusted time periods.
How does consolidating loans with different payment counts work?
If you have loans with differing payment counts, you could maximize the benefit of the account adjustments by consolidating. Loans earn progress towards forgiveness individually, meaning your loans could have different payment counts. This is most common for borrowers who took loans out at different times (ex: undergrad, then returned to school at a later time). If you consolidate loans with different payment counts, the highest payment count will be applied to the new loan. Ex: if you consolidate a loan with 100 payments and a loan with 50 payments, the new consolidation loan will be credited with 100 payments.
I have a Parent PLUS Loan. How will the account adjustments benefit me?
Normally payments made before consolidating a Parent PLUS Loan into a Direct Consolidation Loan do not count towards forgiveness. However, the account adjustment will give you credit for any payments made on a Parent PLUS Loan before it was consolidated. Because of this, it is highly recommended that you consolidate your Parent PLUS Loan so you can get credit for those payments!
How long do I have to pay on my loans to receive IDR Forgiveness?
IDR Forgiveness forgives your remaining loan balance after you have paid for 20 or 25 years. Loans are eligible for forgiveness based on the following timeframes:
| Loan Type | Timeline |
| Parent PLUS Loans or Direct Consolidation Loans that include a Parent PLUS Loan | 25 years (300 months of payments) |
| Borrowers with only undergraduate loans | 20 years (240 months of payments) |
| Borrowers with graduate loans AND currently enrolled in the Pay As You Earn (PAYE) repayment plan | 20 years (240 months of payments) |
| Borrowers with graduate loans and NOT currently enrolled in the PAYE repayment plan | 25 years (300 months of payments) |
What if I haven’t started making payments on my loans yet? Do I still need to consolidate?
The account adjustments are only for people that have already been in repayment. If you haven’t started making payments yet, there aren’t any past payments for you to get credit for. Savi will help you when you start repayment to ensure every future payment you make counts towards forgiveness.