State Department of Banking and Insurance Announces Urgent Deadline for Federal Loan Forgiveness Eligibility

TRENTON, NJ – The New Jersey Department of Banking and Insurance is actively notifying student loan borrowers about the critical April 30 deadline to consolidate Federal Family Education Loan (FFEL) Program loans. This initiative is part of a federal effort to address servicing errors that previously hindered loan forgiveness qualifications. 

The U.S. Department of Education is conducting a payment count adjustment to help correct past errors in student loan servicing that prevented some payments from counting toward forgiveness.

The urgency of the consolidation process is communicated through a massive email outreach to over 72,000 potentially eligible borrowers, leveraging information provided by loan servicers. This campaign underscores a commitment mandated by a 2019 state law, ensuring the licensing and regulation of student loan servicers while offering essential support to borrowers.

Acting Commissioner Zimmerman emphasizes the significance of this deadline: "The department wants borrowers to be aware of this upcoming deadline to participate in this federal loan forgiveness program. By acting before the deadline, this historic debt relief opportunity can provide financial relief from burdensome student loan payments for eligible New Jerseyans."

Eligible borrowers are required to consolidate their FFEL loans into the Direct Loan Program by April 30, 2024, to benefit from this forgiveness opportunity. Applications can be submitted free of charge via the U.S. Department of Education's official website: Studentaid.gov/loan-consolidation.

Margo Chaly, Esq., Executive Director of the New Jersey Higher Education Student Assistance Authority (HESAA), also reinforces the importance of this initiative: “The federal government is offering a student loan forgiveness opportunity under the Federal Family Education Loan Program, and we strongly encourage every eligible New Jersey resident to take the steps necessary to apply for this debt-relief program,” adding that HESAA will continue supporting Governor Murphy’s college affordability initiatives by providing significant state financial aid.

For further assistance, borrowers can contact the Federal Student Aid Information Center (FSAIC) at 1-800-433-3243 or engage through live chat at their StudentAid.gov account.

The New Jersey Department of Banking and Insurance remains a pivotal resource for residents, assisting in navigating student loan payment options and resolving disputes with loan servicers, thus safeguarding consumer rights and financial health.

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