Biden administration extends deadline to consolidate old student loans

More than 3.5 million student loan borrowers who received funding under a defunct private program will have more time to consolidate their loans if they want to qualify for a one-time initiative that could wipe out their debt, the Education Department said Wednesday.

Borrowers with federal loans that originated through the Federal Family Education Loan Program (FFEL) will have until June 30 to consolidate, 60 days more than originally planned, the Education Department said.

The extension will throw a lifeline to borrowers who are shut out of debt-relief policies because their federal loans are held by private entities. FFEL ended in 2010. If borrowers with FFEL loans consolidate into the Direct Loan program — where loans are made and held directly by the federal government — they can access the Biden administration’s payment-count adjustment that could result in debt relief.