The student loan forgiveness deadline is quickly approaching, as students only have until June 30 to consolidate their debts.
Under this measure, students can consolidate several student loans into a single one. Doing so can make it easier to pay off the loan and there are also benefits of credits for the previously paid loans.
The forgiveness program, which has a June 30 deadline, can help lower student loan debt. Holders of student loans can apply online, and some may even see their debt cleared immediately.
This all depends on the length of the student loan. Some plans allow for the debt to be cleared after a certain number of years, such as 10 years, 20 years or 25 years.
What to Know About the Student Loan Forgiveness Deadline
While many will benefit from student loan forgiveness and consolidating their debts, there can be some disadvantages. That includes the length of time it takes to repay the loan increasing after consolidation. This could result in the person having to pay more in interest over time.
Karen McCarthy, vice president of public policy and federal relations at the National Association of Student Financial Aid Administrators, said this about the student loan forgiveness to Nerdwallet:
“It does take a little bit of time for the consolidation to go through. Make sure that you understand that it will take some time, because the Department of Ed is literally paying off your previous loans.”
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On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
