Student Loan Planner IDR Waiver: Understanding the Account Adjustment Process

The IDR Waiver account adjustment process can be a bit complex, but understanding it will help you navigate the process with ease. You'll need to submit a request for an account adjustment to the Department of Education.

The account adjustment process typically takes 30-60 days to complete, but it may take longer in some cases. This is because the Department of Education needs to review your request and verify the information.

To increase your chances of a successful account adjustment, make sure you've submitted all required documentation, including proof of income and family size. This will help the Department of Education accurately calculate your payment amount.

If your account adjustment is approved, the Department of Education will update your payment amount, and you'll receive a revised payment schedule.

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If you're one of the borrowers who's been waiting for IDR account adjustment, the good news is that it's finally here. You can now see your updated progress toward IDR forgiveness on StudentAid.gov.

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With the new IDR tracker, you can check how many qualifying payments you've made so far. This is a big deal, as it gives you a clear picture of how close you are to forgiveness.

Here are the three key things you can do with the IDR tracker:

Having this information at your fingertips can be a huge relief, especially if you're feeling overwhelmed by student loan debt. Now you can plan your finances and make progress toward forgiveness with confidence.

To be eligible for the IDR waiver, you need to have federally held loans, which means they're held directly by the U.S. Department of Education. This includes loans serviced by companies like Mohela, Nelnet, or Aidvantage.

However, if you have commercially held FFEL loans, HEAL loans, or Perkins loans, you'll need to consolidate them into a Direct Consolidation Loan to qualify. You can check who holds your loans by logging in to StudentAid.gov and reviewing your loan details.

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Here are the types of loans that qualify for the IDR waiver:

The deadline for consolidation to take advantage of these benefits was June 30, 2024.

To qualify for the one-time IDR adjustment, you need to have federally held loans, which means they're held directly by the U.S. Department of Education. If your loans are commercially held FFEL loans, HEAL loans, or Perkins loans, you'll need to consolidate them into a Direct Consolidation Loan to qualify.

The one-time IDR adjustment is automatic for many borrowers, but you may need to submit a complaint to the U.S. Department of Education's Office of Federal Student Aid to have additional forbearance and deferment time counted.

You can check who holds your loans by logging in to StudentAid.gov and reviewing your loan details. If your loans were previously with servicers like Navient, Granite State, or others but haven't transferred to a federal servicer like Mohela, they're likely commercially held Federal Family Education Loans and need consolidation.

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If you didn't consolidate by the June 30, 2024, deadline, you won't qualify for the adjustment, but you can still benefit from future IDR credits.

Here's how to check and what to do:

The IDR waiver avoided any serious legal challenges, which is surprising given the controversy surrounding it.

Borrowers with commercially held FFEL loans could have faced the most legal risk, as a lawsuit from an investor or group of investors could have blocked their access to this relief program.

Conservative groups needed a large enough payoff politically to justify going after the Biden administration in court, which is why they didn't mount a successful challenge.

Blocking the IDR waiver would have been too technical and confusing to warrant much effort to stop, making it an unlikely and unappealing option for them.

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If you have commercially held FFEL loans, you'll need to consolidate your federal student loans to apply for the IDR waiver. This will automatically update your account.

To determine if you're eligible for the IDR waiver, check if you have commercially held FFEL loans. If you do, consolidation is the first step.

The deadline to consolidate and take advantage of the IDR waiver benefits is June 30, 2024.

The IDR account adjustment process has been a long time coming, but it's finally here. The Department of Education originally aimed to complete the IDR waiver adjustments by September 1, 2024, but this deadline was missed.

As of January 2025, IDR Waiver adjustments have been made, and borrowers can now view their updated progress toward IDR forgiveness on the studentaid.gov website. This is a significant milestone for borrowers who have been waiting for this update.

The IDR payment tracker has gone live on the studentaid.gov website, allowing borrowers to view IDR payment counts within their dashboard. This is a game-changer for borrowers who want to stay on top of their payments and track their progress toward forgiveness.

Here's what you can do with the new IDR tracker:

Having this information at your fingertips can help you plan your finances and stay motivated throughout the repayment process.

To apply for the IDR waiver, you'll need to consolidate your federal student loans if you have commercially held FFEL loans. Those with direct federal student loans and FFEL loans held by the ED will have their accounts automatically updated.

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If you have commercially held FFEL loans, it's essential to consolidate them before the end of June 2024 to qualify for the waiver. This is because there could be future lawsuits that may try to block the waiver.

Borrowers with direct federal student loans or FFEL loans held by the ED don't need to consolidate their loans to qualify for the waiver. However, if you have FFEL loans held by the ED and plan to pursue Public Service Loan Forgiveness (PSLF), it's still a good idea to consolidate your federal student loans.

If you're currently on a graduated or extended repayment plan, or any plan that doesn't qualify for forgiveness, now is the time to consider switching to an IDR plan. This could save you years of payments if you're close to forgiveness.

To determine if switching to an IDR plan makes sense for you, check your progress on the IDR tracker on StudentAid.gov. If you're unsure about what to do, consider booking a call with a student loan expert who can help you evaluate your situation and choose the right plan.

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The IDR waiver has opened up new possibilities for student loan forgiveness. Any repayment plan could have qualified for forgiveness under the waiver.

Borrowers who were making payments under the Extended Repayment Plan since 2002 could have received credit for all those payments towards IDR forgiveness, even if they consolidated later. This is a huge deal, especially for those who were close to forgiveness.

The IDR Plan Table shows the different repayment plans and their eligibility criteria. Here's a breakdown of the plans:

The IDR waiver is a game-changer for borrowers who were not working towards PSLF, as they can now receive credit towards student loan forgiveness programs like IDR forgiveness.

Consolidating loans with the IDR waiver can be a game-changer for borrowers with older student loans and a previous repayment history.

The IDR waiver allows borrowers to carry over payments made pre-consolidation, and the loan with the longest repayment history will be applied to all the loans included in the consolidation.

This means that if you consolidated your loans, they will take the payment history for the loan borrowed earliest into account, which can greatly reduce the number of payments needed to reach Public Service Loan Forgiveness (PSLF).

For example, if you started borrowing in 2007 for undergrad and recently borrowed for graduate school in 2020, consolidating those loans together will apply the payment history for the 2007 loan to your graduate loans.

This can be a huge advantage for borrowers who have been making payments in an Income-Driven Repayment (IDR) plan for years, as it can give them extra credit towards forgiveness.

However, it's essential to ensure that your payment counts are adjusted correctly after consolidation, as mistakes can be made.

The IDR payment tracker can simplify the process, but reconciling the information can be complex, so it's recommended to book a time with a student loan consultant to verify that you've received the proper credit.

In fact, the IDR waiver gave borrowers credit for any repayment plan towards IDR forgiveness, even payments made before consolidation, which can be a huge advantage for borrowers who have been making payments in a plan other than IDR.

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The IDR waiver deadline has been extended to June 30, 2024. This is a crucial date to keep in mind if you're considering applying for the waiver.

The original deadline was April 2024, but it's now been extended to June 30th. I recommend not waiting until then to apply.

It's worth noting that the waiver could potentially end prior to the current deadline due to legal scrutiny. This is a consideration to keep in mind when deciding when to apply.

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To maximize your situation with the IDR waiver, it's essential to understand the timeline for debt cancellation. Some cancellations will occur immediately, while others will happen over several years as borrowers hit their 10-, 20-, and 25-year forgiveness payment counts.

If you're eligible for the PSLF program, make sure you're aware of the 120-month payment requirement. If forbearance and deferment, along with your payments, puts you above this threshold, you can fill out the PSLF ECF form to check your eligibility immediately.

The Department of Education is instructing student loan servicers to update borrower accounts with a one-time revision by early 2025. However, if you obtain forgiveness under the IDR waiver before then, your application could have been processed sooner.

The IDR waiver tracker shows your progress toward forgiveness through income-driven repayment, and now that the IDR account adjustment has been applied, it's time to figure out which tracker will get you to forgiveness faster.

You can check both the PSLF tracker and the IDR waiver tracker on StudentAid.gov to see which one has you closer to forgiveness. Look at your PSLF tracker to see how many qualifying payments you've made toward the 120 required for forgiveness.

If you're in public service, you've got two trackers to think about: the PSLF tracker counts qualifying payments for Public Service Loan Forgiveness, and the IDR waiver tracker shows your progress toward forgiveness through income-driven repayment.

Here's a quick comparison of the two trackers:

Whichever tracker has you closer to forgiveness is the one to prioritize, and if both trackers show you're within striking distance of forgiveness, you have options for how to proceed.

Until 2026, any cancellation is free from any federal taxation.

If you received forgiveness thanks to the IDR waiver within a few years of 2026, you might want to consult a tax advisor on mitigating this potential tax impact.

Some states could impose state income tax, so it's essential to check if you live in one of the following states: IndianaMinnesotaMississippiNorth Carolina If you do, consult a tax advisor to understand your specific situation.

The IDR Tracker is live now, launched by the Education Department on January 14, 2025. This means you can check your loan forgiveness progress at any time.

Most borrowers won't see major changes to their payment counts until early 2025, but the tracker gives you clear visibility into your loan forgiveness progress today.

The IDR waiver allows borrowers to get credit for any repayment plan toward IDR forgiveness, even payments made before consolidation. This is a game-changer for many borrowers.

For example, if you paid your loans under the Extended Repayment Plan since 2002, you could get credit for all those payments and be close to forgiveness. This is especially helpful if you have loans with different payment histories.

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So you're trying to figure out which tracker to focus on - PSLF or IDR? Well, first things first, log in to StudentAid.gov and compare your PSLF and IDR waiver trackers.

The PSLF tracker counts qualifying payments for Public Service Loan Forgiveness, while the IDR waiver tracker shows your progress toward forgiveness through income-driven repayment. The IDR waiver lasted from April 2022-July 2024, and it's still in effect.

Check Both Trackers: Look at your PSLF tracker to see how many qualifying payments you've made toward the 120 required for forgiveness. Then, check your IDR Forgiveness tracker to see how many payments are left to hit forgiveness through income-driven repayment.

Whichever tracker has you closer to forgiveness is the one to prioritize. If it's PSLF, ensure your employment certification is current and your loans are in the right repayment plan. If it's IDR, confirm you're enrolled in an eligible plan and your tracker reflects all qualifying payments, including adjustments.

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Here's a quick rundown of what to do:

Sometimes it's not just about the numbers, though. Factors like your monthly payment, timeline, and personal financial goals also matter. If you're stuck, reach out to an expert for advice.