November 8, 2023

Beat the December Deadline for Faster Forgiveness Under the IDR Waiver


The Income-Driven Repayment (IDR) Waiver, or one-time Account Adjustment program that was introduced last year by the Department of Education as a remedy for historic problems including ballooning balances due to capitalizing interest, is ending on December 31, 2023.

The program expands qualifying payments for the 10-year Public Service Loan Forgiveness and the 20 or 25-year Income-Driven Repayment (IDR) forgiveness programs. It now includes additional repayment periods and numerous instances of forbearance or deferment.

All borrowers of the Direct loan program, including graduate and Parent PLUS Loan holders, will get at least three years of credit towards forgiveness. However, some borrowers are required to consolidate to be eligible.

We're only weeks away from the deadline for this student loan forgiveness. This means that some borrowers will need to act quickly to secure the student loan forgiveness they are eligible for.

Some Must Consolidate Immediately to Qualify

4 million or more borrowers could receive total forgiveness if they consolidate before the deadline. Borrowers with FFEL Loans not held by the ED can consolidate by combining one or more federal education loans into a new Direct Consolidation Loan. Doing this will make that loan eligible for the IDR and PSLF programs.

The deadline for consolidation is December 31, 2023.

Borrowers can start the consolidation process now to lock in their payment credits with the Chipper app. Chipper's intelligent loan technology determines which loans are eligible for consolidation. It then guides borrowers through an easy application process, enabling them to secure their lowest possible monthly payment and achieve loan forgiveness sooner.

Who Will Benefit from the Waiver

This could result in millions of borrowers having their entire balances entirely eliminated. However, many borrowers must act before the Administration's December 31, 2023, deadline.

  • Borrowers who have been or are currently on an IDR Plan
  • Borrowers in the Public Service Loan Forgiveness (PSLF) program
  • Borrowers who have a Direct or Federal Family Education Loan (FFEL) Program loans held by the U.S. Department of Education (ED).

Additional Eligible Payments Under the One-Time Adjustment Include

  • 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
  • Any months spent in economic hardship or military deferments in 2013 or later;
  • Any months spent in any deferment (with the exception of in-school deferment) prior to 2013; and
  • Any time in repayment (or deferment or forbearance, if applicable) on earlier loans before consolidation of those loans into a consolidation loan.

Payment Counts for Borrowers Going After Public Service Loan Forgiveness (PSLF)

  • Borrowers who consolidate their FFEL loans before December 31, 2023, will have their payments count towards PSLF.
  • PSLF counts show zero in Fall 2023 will be adjusted each month until the IDR counts for all federally held FFELP and Direct Loans are adjusted in 2024.
  • After the adjustment in 2024, all periods credited toward IDR will also be credited toward PSLF for eligible loans and periods where the borrower certifies public service employment.
  • Changes will be automatically applied to all PSLF-eligible Direct Loans, including both consolidated and unconsolidated parent PLUS loans.

The Deadline Looms Despite Recent Servicer Mishaps

Some reports suggest that the Biden administration might extend the consolidation deadline for the IDR Account Adjustment to July 1, 2024 to prevent issues related to Direct loan consolidation during the interim period.

The Education Department has acknowledged the billing errors made by servicers and the delays in implementing student loan initiatives, including miscalculations of payments under the Saving on a Valuable Education (SAVE) plan. Officials have stated that they will address these issues by waiving interest, offering reimbursements, and providing credits towards student loan forgiveness under Automatic Forbearance.

Given the widespread issues that borrowers are encountering, the Education Department may extend the benefits of the IDR Account Adjustment, including the consolidation deadline. However, they have not yet formally indicated that they will do so.

Make sure you're enrolled in an Income-Driven Repayment (IDR) plan today to ensure that you receive forgiveness as soon as possible.

Use Chipper for Lower Payments

Chipper can help you find a student loan repayment plan that actually fits into your budget. You simply fill out your information and link your student loan account for us to generate your options in seconds. We help the average student loan borrower save over $300 a month off their student loan monthly payment. Lowering your monthly payment plan can game changing for your personal finance and can be done in minutes! Sign up for Chipper today to get on track with your student loans.

Use Chipper for The Best Path to Forgiveness

Finding your path to student loan forgiveness is easier than ever before. Chipper helps members find better Income-Driven Repayment (IDR) plans every day. Once enrolled in an eligible repayment plan, we can help you explore your forgiveness options and understand your path towards forgiveness. Sign up with Chipper today and get on track with your student loans.

Use Chipper for Round-Ups

Paying off your student loans doesn’t have to be a long and painful journey. Round-Ups are a way to directly pay off your loans with your everyday spending! By tracking your linked spending account(s), we will calculate the rounded up amount from each transaction in a week (IE spending $4.28 would add $0.72 to the weekly amount). We then initiate a payment towards your student loan for the weekly amount. Get chipping away on your student loans with Chipper today.

Use Chipper for Public Service Loan Forgiveness (PSLF)

The Public Service Loan Forgiveness (PSLF) program was created to provide relief to borrowers aiding the public sector. Unfortunately, 30% of applicants are denied due to incorrect paperwork. We can help! Chipper was created to solve this issue by assisting borrowers in understanding their options as well as allowing forgiveness eligible users enroll into the best forgiveness program available. Sign up for Chipper today to see your student loan forgiveness options and get the forgiveness you deserve.

Use Chipper for Teacher Loan Forgiveness (TLF)

The Teacher Loan Forgiveness (TLF) program was created to enable teachers working in Title 1 schools to receive student loan forgiveness of up to $17,500 (depending on their teaching subject). Chipper has helped teachers from all over the country qualify for TLF program and can help you get the forgiveness you deserve today. Find out if you qualify for forgiveness in minutes with our employer search tool.

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