Eligible federal student loan borrowers have until June 30 to submit their applications for Direct Loan Consolidation, which can help them accelerate their student loan forgiveness, according to CNBC.
The Income Driven Repayment Account Adjustment is a federal student loan forgiveness initiative, offering forgiveness for student loan borrowers. Later this year the government will be making payment count adjustments = to disperse forgiveness more accurately, says Federal Student Aid. Borrowers with a commercial or Federal Direct Loan, Federally Owned Federal Family Education Loan, Perkins, or Health Education Assistance Loan, are encouraged to apply for Direct Loan Consolidation.
Consolidating loans allows the FSA to streamline forgiveness disbursements more efficiently rather than disbursing them to a group of individual loans.
Borrowers can still apply for federal consolidation after June 30, but the FSA advises them to apply immediately.
The application for a Direct Consolidation Loan can be found on StudentAid.gov or with a borrower’s loan servicer. The application process should take less than 15 minutes.