As The Deadline Comes, AG Henry Encourages Eligible Borrowers To Benefit From Changes To The Federal Loan Forgiveness Program

AG Henry (Credits: Butler Radio)

Pennsylvania’s Attorney General Michelle Henry calls on residents with certain student loans to act swiftly before April 30 to potentially receive substantial reductions or even complete forgiveness of their loan balances, depending on their repayment plans.

This opportunity is open to individuals with Perkins, Health Education Assistance (HEAL), or Federal Family Education Loans (FFEL) held commercially.

By consolidating these loans into the Direct Loan Program offered by the Department of Education, borrowers make their loans eligible for Income-Driven Repayment (IDR) programs, including the recently introduced SAVE program.

Pennsylvania Attorney General (Credits: WTAJ)

Attorney General Henry highlighted the urgency of this matter, especially with federal student loan payments set to resume. She mentioned her office’s success in securing over $205 million in debt cancellation for private and federal student loan borrowers since 2020. She pledged continued support for Pennsylvanians dealing with student loan debt.

The process could significantly benefit certain borrowers, such as those working for government or nonprofit organizations. These borrowers might qualify for forgiveness after as few as ten years of payments under the Public Student Loan Forgiveness program. Additionally, borrowers who have taken out $12,000 or less and are enrolled in the SAVE plan could also see benefits.

By consolidating into Direct Loans by the April 30 deadline, borrowers could have their past payments count towards their total needed for loan forgiveness, potentially receiving credit for times when payments were not required.

Attorney General Mitchelle Henry (Credits: PA Senate Dems)

Following consolidation, further credits toward forgiveness can be earned by enrolling in an IDR plan, like the SAVE Plan, which is designed to be more affordable for borrowers.

Attorney General Henry’s office sends notifications to over 30,000 borrowers likely to benefit from this program to assist in this effort. She recommends visiting the Pennsylvania Office of Attorney General’s website, which is dedicated to this time-limited forgiveness opportunity, for detailed guidance on proceeding.

For eligibility, borrowers are advised to:

  • Check their Federal Student Aid (FSA) account online or contact the U.S. Department of Education to verify if their loans are Perkins, HEAL, or commercially held FFEL.
  • Apply for loan consolidation into a Direct Loan before the April 30, 2024, deadline.
  • Enroll in an IDR plan, linking monthly payments to their income level.

Additional details and instructions for enrollment in IDR plans are available on the FSA’s IDR Account Adjustment page. Borrowers with questions or uncertainties about their loan servicer can find this information through the Department of Education’s online resources. This initiative represents a critical chance for eligible Pennsylvanians to reduce or eliminate their student loan debt burden.