The deadline for student loan forgiveness is June 30. Here's what borrowers need to know.

• Borrowers of student loans have until June 30 to fulfill a condition that may result in faster debt cancellation.
• Here's what borrowers should know.

Borrowers of student loans have until the end of June to fulfill a deadline that may result in faster debt cancellation.

Some could even see their debt cleared immediately.

Students with multiple federal student loans who apply for loan consolidation by June 30 may benefit from a temporary policy.

Here's what borrowers should know.

Combining loans can lead to earlier relief

Numerous student loan borrowers possess multiple education loans due to repeated borrowing during college or returning to school.

If borrowers are enrolled in an income-driven repayment plan, they may be on multiple timelines to forgiveness, with different timeframes for having any remaining debt excused (10, 20, or 25 years, depending on the plan).

The Biden administration's temporary policy allows borrowers to earn credit toward all their loans based on the one they have been paying off the longest. Additionally, borrowers will receive credit for certain periods that were previously not considered, such as months spent in deferments or forbearances.

Jane Fox, the chapter chair of the Legal Aid Society's union, stated in an interview with CNBC that this would guarantee the highest number of months of credit towards student debt cancellation for individuals.

The Treasury Department announces new Series I bond rates; Cash savers still have an opportunity to beat inflation; TikTok's viral savings challenges have flaws.

Consolidating under this policy could benefit many, experts suggest.

If a borrower consolidates their loans before July 1, they may be able to quickly qualify for loan forgiveness on all their loans, even though they would normally need to wait at least another 14 years for full relief.

Fox stated that numerous borrowers would receive total debt cancellation, mainly those who have been making payments for more than twenty years.

Consolidating a student loan can reset a borrower's forgiveness timeline, which can be detrimental for those seeking loan cancellation.

What to know about the consolidation process

Mark Kantrowitz, a higher education expert, stated in a previous interview with CNBC that all federal student loans, including Federal Family Education Loans, Parent Plus loans, and Perkins Loans, are eligible for consolidation.

You can apply for a Direct Consolidation Loan in under 15 minutes through StudentAid.gov or your loan servicer.

If borrowers repay small loans within 10 years and enroll in the SAVE plan, they may be eligible for loan cancellation.

Consolidating loans should not increase monthly payments under an income-driven repayment plan, as the bill is typically calculated based on earnings rather than total debt, according to Kantrowitz.

Your loans' interest rates will be combined to calculate a new, average rate.