The deadline to recertify your IDR plan has been extended to Nov. 1, 2024.
Good news for those with student loans! The Department of Education (ED) has given borrowers a bit of a break by extending the deadline for recertifying income-driven repayment plans. Instead of rushing, borrowers now have until late September 2024 to get their paperwork in. This should ease the pressure on individuals worried about their monthly payments rising.
In IDR plans, your monthly payments depend on how much you make in a year. But because of the pandemic messing things up, lots of people have been paying based on what they earned back in 2019. Since it’s taking longer to update income info, people can keep enjoying those lower monthly payments for a bit longer.
The Department of Education is helping out borrowers as they get ready to start paying back their student loans again. They’re recognizing the tough economic times people have been going through lately, with prices going up and jobs being unpredictable.
For borrowers who have already gone through recertification and seen their payments increase, the Department of Education assures them that they’ll go back to their old monthly payment until the next recertification deadline. But for those who missed their recertification deadline in March and were removed from their IDR plans, resulting in increased payments, the Department of Education has clarified that they are working on returning them to their previous payment amounts.
While this extension offers a temporary solution for borrowers, it’s important to consider other factors, such as potential tax consequences. President Joe Biden’s executive order to forgive specific student loan debts has sparked worries regarding how states will handle this relief in terms of taxes.
Even though federal taxes on forgiven student loan debt have been exempted until 2025, the approach at the state level differs. Certain states, such as Indiana and North Carolina, intend to levy taxes on forgiven debt, while others, like California, are still in the process of deciding on the issue.
