Pennsylvania Attorney General Michelle Henry is encouraging Pennsylvanians with qualifying student loans to take action before April 30 to receive significant credit towards loan forgiveness — or, in some cases, full forgiveness of remaining balances depending on the borrower’s repayment plan.

Borrowers with Perkins, Health Education Assistance (HEAL), or commercially-held Federal Family Education (FFEL) loans, could receive substantial credit toward loan forgiveness, and in some instances full forgiveness, if they consolidate by the deadline.

By consolidating these loans into the Department of Education’s Direct Loan Program, the loans become eligible for Income-Driven Repayment programs, such as the new SAVE program.

“With federal student loan payments resuming, now is the time for Pennsylvanians to take advantage of beneficial programs that are available,” Attorney General Henry said. “Since 2020, my office has obtained more than $205 million in private and federal student loan debt cancellation, and will continue to be active on behalf of the millions of impacted Pennsylvanians.”

Some borrowers who consolidate and enroll in an Income-Driven Repayment plan may qualify with as few as 10 years of payments if they work for the government, or most types of nonprofits (under the Public Student Loan Forgiveness program), or if they borrowed $12,000 or less and have enrolled in the SAVE plan.

Borrowers who consolidate their loans into Direct Loans by April 30 may also be eligible to have their payments counted towards total loan forgiveness through this adjustment. Through the adjustment, it may be possible to receive credit for payments in months where you were not required to make a payment.

After consolidation, credit can continue to be earned towards forgiveness by enrolling in an Income-Driven Repayment plan, like the new, more affordable SAVE Plan.

Attorney General Henry is sending notification letters to more than 30,000 borrowers who are most likely to benefit from this program. Additionally, her office is recommending that eligible borrowers visit this web page: Take Action on a Time-Limited Student Loan Forgiveness Opportunity – PA Office of Attorney General, that will assist borrowers in navigating the steps needed to take advantage of the program.

Attorney General Henry urged borrowers to take the following steps to see whether they can qualify for Income-Driven Repayment (“IDR”) Account Adjustment:

• Research your student loans to know whether you have a Perkins, HEAL, or commercially held FFEL loan:
  • Visit your Federal Student Aid (FSA) account at studentaid.gov;
  • Or you can call the U.S. Department of Education at 1-800-433-3243.
• If you have a Perkins, HEAL, or commercially held FFEL loan:
  • Apply to consolidate your loan(s) into a Direct Loan by April 30, 2024;
  • Enroll in an IDR plan so that your monthly payments are tied to your income;
  • Visit FSA’s IDR Account Adjustment page for more information.

Borrowers with additional questions should reach out directly to their loan servicer. If you are not sure who your loan servicer is, you can obtain that information online through the Department of Education.