A crucial deadline is coming up for borrowers with commercially held federal loans and those who were in delinquent status before the pandemic payment pause. Borrowers with commercially held federal loans have until Dec. 31 to consolidate their loans to qualify for the one-time payment adjustment, which can help them get closer to or achieve a discharge through their income-driven repayment (IDR) plan, YahooFinance.com reported. For borrowers in default, Dec. 31 is also the deadline to enroll in the Fresh Start program to get in good standing to be eligible for the one-time payment adjustment and to qualify for an income-driven repayment plan that could lower their monthly payment. These borrowers must take the following steps by the end of the year. The majority of loans through the Federal Family Education Loan (FFEL) program are commercially held because the program and Education Department worked with private lenders to provide student loans guaranteed by the federal government.
