HARRISBURG, PA — In a significant announcement, Pennsylvania Attorney General Michelle Henry has called on Pennsylvanians with certain types of student loans to act swiftly to capitalize on a potentially life-changing opportunity for loan forgiveness. With an April 30 deadline looming, those holding Perkins, Health Education Assistance (HEAL), or commercially-held Federal Family Education Loan (FFEL) programs are positioned to benefit from substantial relief, possibly even seeing their remaining loan balances forgiven entirely.
The key to unlocking these benefits lies in consolidating eligible loans into the Direct Loan Program managed by the Department of Education. This move not only makes these loans eligible for Income-Driven Repayment (IDR) programs but also introduces borrowers to the newly unveiled SAVE program, designed to offer more affordable repayment options.
Attorney General Henry’s push comes at a crucial time as federal student loan payments, paused since the onset of the COVID-19 pandemic, are set to resume. “With federal student loan payments resuming, now is the time for Pennsylvanians to take advantage of beneficial programs that are available,” Henry stated, emphasizing the proactive efforts of her office which has secured over $205 million in student loan debt cancellation since 2020.
For some borrowers, particularly those employed by government or most nonprofit entities, or those who have borrowed $12,000 or less and enrolled in the SAVE plan, loan forgiveness could be realized with as few as 10 years of payments under the Public Student Loan Forgiveness program.
Moreover, the consolidation process may enable past periods of non-payment to count towards loan forgiveness, providing a retroactive boost towards achieving this milestone. Following consolidation, continued credit towards forgiveness is achievable through enrollment in an IDR plan, like the SAVE Plan, which aligns monthly payments with the borrower’s income.
Recognizing the transformative potential of this opportunity, Attorney General Henry is personally reaching out to over 30,000 borrowers identified as likely to benefit. Additionally, her office has launched an informational campaign, directing borrowers to a dedicated web page that offers guidance on navigating the steps necessary to take full advantage of this time-limited offer.
For those uncertain about the specifics of their loans or eligibility, Henry advises a thorough review of one’s Federal Student Aid account or direct contact with the U.S. Department of Education. The process involves applying for loan consolidation into a Direct Loan by the April 30 deadline and enrolling in an IDR plan that best suits the borrower’s financial situation.
This initiative represents a beacon of hope for thousands of Pennsylvanians burdened by student loan debt. By taking decisive action, eligible borrowers have a chance to alleviate financial stress and secure a more stable financial future. As the deadline approaches, the message from the Attorney General’s office is clear: explore your options, understand your eligibility, and don’t miss this critical window for potential loan forgiveness.
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