Education Dept. Extends Deadline to Consolidate Loans for Forgiveness

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More than two weeks after a deadline passed for federal loan borrowers seeking debt relief, the Education Department has extended the offer, giving millions of borrowers a fresh shot at aid. The department said on Wednesday that borrowers would now have until June 30 to consolidate commercially held education debt under the Federal Family Education Loan Program — loans originally from private lenders — or Perkins loans into new direct loans, which are held by the Education Department. That consolidation is a required step for borrowers to receive relief through an expansive, but temporary, government waiver program intended to wipe out the remaining debt for borrowers who have been making payments for a term that’s typically at least 20 years. “The department is working swiftly to ensure borrowers get credit for every month they’ve rightfully earned toward forgiveness,” said James Kvaal, the under secretary of education. The previous deadline to consolidate was April 30. The move is part of the Biden administration’s effort to aggressively cancel education debts through longstanding relief programs and by easing bureaucratic barriers. One of the trickiest challenges has been reaching borrowers with loans through the Federal Family Education Loan Program, a lingering vestige of a previous federal student loan system.