Curious if you qualify for the Income-Driven Repayment Waiver?
Here’s the scoop: you need at least one Direct federal student loan or Family Federal Education Loan held by the Department of Education.
The good news is that the Biden administration built the IDR Waiver to cast a wide net—it includes folks from both the public and private sectors.
The Must-Haves for Eligibility
Don’t sweat about paperwork—there’s no separate application for the IDR Waiver. If you’re eligible, you’re in. The one-time account adjustment happens automatically for all eligible loans, be they department-held FFEL or Direct Loans.
What About Health Education Assistance Loans?
Got a HEAL loan? Good news: you can also benefit from the IDR Account Adjustment. All you need to do is consolidate your HEAL loans into a Department-held Direct Consolidation Loan before December 31, 2023.
Direct Loan Consolidation for FFELP Loans
Consolidation might sound like a headache, but it could be a game-changer for your student loans. Direct Loan Consolidation lets you roll multiple federal education loans into one—no extra charge. It’s a sweet deal, especially if you have FFELP loans: consolidating them into a Federal Direct Consolidation Loan makes them eligible for the PSLF Program.
Once consolidated, your shiny new loan is eligible for tax-free loan forgiveness—just make 120 qualifying payments on the consolidation loan while working full-time for a public service employer.
More perks of consolidating FFELP loans?
How about three years of pandemic-related forbearance that pauses payments and interest on federal student loans?
Or for parents with loans for their kids, consolidating FFEL Loans into a Direct Loan makes Parent PLUS Loans eligible for the Income-Contingent Repayment (ICR) plan.
This plan links monthly payments for the new Direct Consolidation Loan to discretionary income and family size, potentially reducing payments to zero.
Related: Parent PLUS Loan Double Consolidation