EDCAP Home > Repayment Guide Overview > IDR Account Adjustment
The Income Driven Repayment (IDR) Account Adjustment is a one-time initiative that will significantly benefit borrowers seeking qualification for the Public Service Loan Forgiveness (PSLF) and Income Driven Repayment Forgiveness (IDRF) programs. These adjustments aim to bring thousands of borrowers closer to loan forgiveness by providing more opportunities to earn qualifying payment credits.
Please note the following important details below:
Time-sensitive opportunity:
Borrowers with FFELP, Perkins, or HEAL loans must apply for a Direct Consolidation Loan via studentaid.gov before December 31, 2023, to take advantage of these adjustments. We recommend consulting with an expert, such as EDCAP, before proceeding, especially if you plan to consolidate after January 1, 2024.
Credit for various periods:
The IDR Account Adjustment allows borrowers to receive credit for the following:
- Periods in repayment.
- Time spent in forbearance, provided they had 12 consecutive or 36 cumulative months in forbearance.
- Most deferments before 2013, as well as economic hardship deferments after 2013.
- Months prior to loan consolidation.
- Credit will be awarded even if you were not making payments or enrolled in an IDR plan.
- Non-creditable periods: It’s important to note that generally time spent in an in-school deferment, grace period, or default will not be credited towards forgiveness.
If you are pursuing PSLF or IDRF, please follow the associated action steps:
- Ensure you have Direct Loans: Consolidate all non-Direct Loans, such as FFEL, Perkins, and HEAL, by December 31, 2023.
- File the PSLF Employment Certification form: After completing the consolidation process, file the PSLF Employment Certification form for every qualifying employer you've had since October 2007. Utilize the PSLF Help Tool for assistance.
- Enroll in an Income Driven Repayment plan: Make sure you are enrolled in an Income Driven Repayment plan to continue accumulating qualifying payments.
- Track your progress: Monitor your progress through the MOHELA PSLF payment tracker.
- Learn more about the top 10 things you should know about PSLF.
- If you're already working toward PSLF, watch a short video on how to track your progress using MOHELA's PSLF Payment tracker.
- Ensure you have Direct Loans: Consolidate all non-Direct Loans, such as FFEL, Perkins, and HEAL, by December 31, 2023 via studentaid.gov.
- Enroll in an Income Driven Repayment plan: Make sure you are enrolled in an Income Driven Repayment plan to continue accumulating qualifying payments.
- Track your progress: For borrowers who have reached the required 20-25 years in repayment, they may see their loans automatically forgiven before payments resume. For everyone else, FSA will provide borrowers with a payment count in 2024.
If you have any questions or need further assistance, please feel free to reach out to our dedicated student loan counselors.
Other helpful resources within this guide: