ST. GEORGE — Student loan borrowers of all ages in Utah and around the country have an opportunity to have their student loans canceled or the chance to receive credit towards loan forgiveness.
But they must act soon.
This summer, the U.S. Department of Education will conduct Income Driven Repayment, a one-time payment count adjustment.
Cora Hume, an attorney with the Consumer Financial Protection Bureau, said borrowers who have non-federally held loans must consolidate them into a direct-consolidation loan with the Department of Education by April 30 to reap the potential benefits.
“Older borrowers are less likely to hold direct loans, which would already benefit from this pay count adjustment and then those that do owe direct loans, they’re less likely to participate in this IDR program that caps their monthly payment based on family size and income,” Hume said.
Hume said the program applies to repayment periods from July 1, 1994, and added that 32% of older borrowers are struggling to pay their bills, which is why she encourages people to call 800-433-3243 or visit StudentAid.gov/loan-consolidation to find out if they’re eligible for the adjustment.
The average student loan debt for the almost 30,000 older borrowers in the Beehive State is just over $44,000, according to the Education Data Initiative. Hume said nationally there are 1.3 million older borrowers who are not in the direct loan program and owe an average of $29,500 in student debt.
“The three loans that must be consolidated to receive this payment count adjustment is the commercially managed Federal Family Education Loan, Health Education Assistance loans and Perkins loans,” Hue said. “Another loan that’s sort of a quasi for consolidation are Parent PLUS loans.”
Written by ALEX GONZALEZ, producer for Public News Service. Support for this reporting was provided by The Carnegie Corporation of New York.
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