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One-time adjustment of student loans could lead to forgiveness

March 19, 2024

Salem – The U.S. Department of Education has begun what it describes as a one-time payment count adjustment for certain federal student loans toward the income-driven repayment and Public Service Loan Forgiveness (PSLF) programs. This could lead to borrowers potentially having their loans forgiven if they consolidate commercially owned Federal Family Education Loan (FFEL) or Perkins Loans into a federal Direct Loan by April 30, 2024.

The Oregon Division of Financial Regulation (DFR) issued a bulletin on this topic in February. The adjustment will apply to Direct Loans and government-owned FFEL borrowers who are working toward forgiveness via their payment plan, or PSLF. Covered loans that have been in repayment for at least 20 years (for undergraduate loans), or 25 years (for graduate loans) will be forgiven, and all covered loans will have their payment counts updated toward those goals. Although commercially owned FFELs and Perkins Loans are not themselves covered by the one-time adjustment, borrowers who consolidate such loans into federal Direct Loans by April 30, 2024, will receive the full benefits of the adjustment.

“We want to ensure that the current servicers are aware of the one-time account adjustment and pertinent deadlines," said Lane Thompson, Oregon's student loan ombuds. “Most borrowers will not need to take action in order to benefit from the one-time adjustment. However, some loan types are not owned by the Department of Education and need to be consolidated (FFEL, Perkins) in order to become eligible."

Borrowers will need to visit the student loan consolidation webpage on to consolidate into Direct Loans by April 30, 2024.

Anyone with questions or concerns can contact Thompson at or 971-374-3619.


About Oregon DFR: The Division of Financial Regulation is part of the Department of Consumer and Business Services, Oregon's largest business regulatory and consumer protection agency. Visit and

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Jason Horton