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The U.S. Department of Education is implementing a one-time IDR Account Adjustment for federal student loan borrowers. This initiative aims to address issues with income-driven repayment (IDR) plans—namely, Save, Pay, IVR, and ICR—which offer forgiveness after 10 to 25 years. Many borrowers previously did not receive adequate credit towards IDR forgiveness and Public Service Loan Forgiveness, leading to tracking difficulties. With the new adjustment, borrowers will receive retroactive credit for payment months, regardless of whether they were on an IDR plan or in active repayment. Additionally, borrowers can apply their highest payment credit from one loan across all loans, potentially accelerating their path to forgiveness.
