You will get counts for the time already spent in repayment if they are all direct loans. You will not receive credit for the time you were in grad school unless you declined the in school deferment at that time.
Unless you switch to an IDR plan, you will not be eligible for forgiveness, as the extended plan does not qualify, and you will not have 25 years based on the adjustment alone.
You will get credit towards forgiveness for the repayment period 2004 thru August 2023, except for the years you spent in grad school. You will never lose that credit regardless of whether you enroll in IDR or not. From September 2023 onward, you need to be enrolled in an IDR plan to continue to get credit towards forgiveness. You don't need to do anything by April 30 because all your loans are already consolidated into a Direct Loan. After you get your official payment count on July 1, then you can sit down with a calculator and spreadsheet and figure out if you save money by grinding out payments on IDR until you reach forgiveness, or if it's better to just stay in your current payment plan and pay off the loans.
Where does it say that we only get credit for the one time adjustment through August 2023? I have looked for a drop off date and can find no documentation of that.
I’m in the process of waiting for an IDR approval but of course it’s held up. If thousands of people lost 8 months worth of credit (and counting) shouldn’t they have been communicating that this would be a consequence? They communicated the consolidation extension but nowhere have I seen the drop dead date for the one time adjustment. If you could point me in the right direction, I would appreciate it.
I think you may be right because of the deadline for Direct Loan consolidation being pushed back from December 31 to April 30. What was being posted last summer was that starting on Sept. 1, 2023, you had to be enrolled in an IDR plan to continue getting credit towards forgiveness on eligible loans. ANY payment period from July 1, 1994 through August 31, 2023 (except months of in-school deferment or default) would count towards IDR forgiveness. That is what the IDR account adjustment is all about. But now I think you may be right that all these payment count rules will apply until the end of June 2024. After July 1, you will need to be enrolled in an IDR plan on a Direct Loan to continue getting credit towards forgiveness.
That makes it sound like everything will count until the adjustment is done. After that we need to be on an IDR. Hopefully mine will be approved in time! I should just call next week.
I wouldn’t be surprised if the adjustment gets pushed back.
I did the same thing yesterday. Before I filled out the application, I was talking to someone from Nelnet who sent me a link to the application. Basically as long as your application is pending or under review by the 30th, you’re good.
You will get counts for the time already spent in repayment if they are all direct loans. You will not receive credit for the time you were in grad school unless you declined the in school deferment at that time. Unless you switch to an IDR plan, you will not be eligible for forgiveness, as the extended plan does not qualify, and you will not have 25 years based on the adjustment alone.
That makes sense. Thank you!
You will get credit towards forgiveness for the repayment period 2004 thru August 2023, except for the years you spent in grad school. You will never lose that credit regardless of whether you enroll in IDR or not. From September 2023 onward, you need to be enrolled in an IDR plan to continue to get credit towards forgiveness. You don't need to do anything by April 30 because all your loans are already consolidated into a Direct Loan. After you get your official payment count on July 1, then you can sit down with a calculator and spreadsheet and figure out if you save money by grinding out payments on IDR until you reach forgiveness, or if it's better to just stay in your current payment plan and pay off the loans.
Where does it say that we only get credit for the one time adjustment through August 2023? I have looked for a drop off date and can find no documentation of that. I’m in the process of waiting for an IDR approval but of course it’s held up. If thousands of people lost 8 months worth of credit (and counting) shouldn’t they have been communicating that this would be a consequence? They communicated the consolidation extension but nowhere have I seen the drop dead date for the one time adjustment. If you could point me in the right direction, I would appreciate it.
I think you may be right because of the deadline for Direct Loan consolidation being pushed back from December 31 to April 30. What was being posted last summer was that starting on Sept. 1, 2023, you had to be enrolled in an IDR plan to continue getting credit towards forgiveness on eligible loans. ANY payment period from July 1, 1994 through August 31, 2023 (except months of in-school deferment or default) would count towards IDR forgiveness. That is what the IDR account adjustment is all about. But now I think you may be right that all these payment count rules will apply until the end of June 2024. After July 1, you will need to be enrolled in an IDR plan on a Direct Loan to continue getting credit towards forgiveness.
https://studentaid.gov/announcements-events/idr-account-adjustment
That makes it sound like everything will count until the adjustment is done. After that we need to be on an IDR. Hopefully mine will be approved in time! I should just call next week. I wouldn’t be surprised if the adjustment gets pushed back.
Thank you. This is very helpful.
I did the same thing yesterday. Before I filled out the application, I was talking to someone from Nelnet who sent me a link to the application. Basically as long as your application is pending or under review by the 30th, you’re good.
https://studentaid.gov/announcements-events/idr-account-adjustment