The Federal Student Aid office of the U.S. Department of Education quietly extended the deadline for borrowers to apply for Direct Loan Consolidation.
People previously had until May 1, but now they have until the end of the year.
"This is one of those things where everyone who takes advantage of it will benefit,” said Martin Lynch, president of Financial Counseling Association of America and director of education at Cambridge Credit Counseling.
Lynch said this consolidation plan can help people on income-driven repayment plans who have Federal Family Education Loans (FFEL), Perkins Loans or Health Education Assistance Loans. He said consolidating would not impact those who need to make a certain number of payments before qualifying for forgiveness. It would also lower monthly payments.
Those who have questions regarding their student loans can get help from Cambridge Credit Counseling and Parachute Credit Counseling.