Payment Count Adjustment for IDR and PSLF Leading to Quicker Student Loan Forgiveness

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Payment Count Adjustments Toward Income-Driven Repayment and Public Service Loan Forgiveness Programs | Federal Student Aid

Bankruptcy and default status count as a payment. Forbearance counts in some circumstances. Most deferment count except in-school. Time before consolidation counts for repayment periods after July 1, 1994. The government could see a lot of student loans forgiven. The first set of student loans reviewed will be those that have been in repayment long enough to get forgiveness (20 or 25 years) which is expected by end of August. No need to apply for the payment count adjustments. It will happen automatically sooner or later.

[NwodGniog]

It is very good news for a lot of us. And until December 2025, there will be no federal tax liability for any student loans forgiven from this adjustment. I am still waiting for the counters to even appear for IDR accounts. It seems that it might not happen for IDR accounts until early 2024. If they do end up counting deferments before 2013, then mine are all toast right now. I would then have more than enough months to qualify for forgiveness.