Income-driven repayment (IDR) plans are a critical benefit for many federal student loan borrowers. These plans give more affordable payment options to borrowers struggling to keep up with their payments, so many borrowers panicked last month when the U.S. Department of Education removed the IDR application from the StudentAid.gov site.
At the end of March, the application became available. However, there are still some issues with the application that borrowers should be aware of so they can manage their loans.
Income-Driven Repayment Applications Are Available
Federal courts issued injunctions preventing the Department of Education from instituting the Saving on a Valuable Education (SAVE) repayment plan and some aspects of other IDR plans. As a result, the government removed the applications for IDR plans and Direct Consolidation Loans from the website at the end of February.
The applications for both IDR plans and Direct Consolidation loans returned on March 26, 2025. But, the Federal Student Aid website warned borrowers that student loan servicers are still updating their systems, and cannot process new IDR applications at this time. While borrowers can submit an IDR application, the loan servicer cannot process it right now, and you won’t be able to make a reduced payment yet.
What This Means for Borrowers
The latest court actions pause several changes to IDR plans that were instituted by President Biden. As a result, there are some key changes to be aware of:
There Are Just Three Repayment Options
Before the introduction of the SAVE plan, there were four repayment plans:
- Income-Based Repayment (IBR)
- Income-Contigent Repayment (ICR)
- Pay As You Earn (PAYE)
- Revised Pay As You Earn (REPAYE)
SAVE replaced REPAYE. And, now that SAVE has been blocked, there are just three repayment plans to choose from: IBR, ICR, and PAYE.
Loan Forgiveness Under IDR Plans is Frozen
Under IDR plans, if you still have a balance at the end of your repayment term — 20 or 25 years, depending ont he plan — the government discharges the remainder. However, the government says this feature is frozen; anyone under ICR or PAYE aren’t eligible for loan forgiveness at this time. Instead, borrowers who reach the timeline threshold will be moved into forbearance.
Borrowers under an IBR plan are still eligible for loan forgiveness.
You May Need to Recertify Your Income
With IDR plans, you have to submit your updated income every 12 months, and your payment amount is adjusted based on that amount.
- If your loan recertification date was on or before March 17, 2025, you had to submit your recertification on or before February 20, 2025:
- If you submitted your recertification on or before February 20, 2025, and your loan servicer completed the update, there is no impact.
- If you submitted your recertification on or before February 20, 2025, and your loan servicer didn’t complete the update, your recertification deadline is extended by one year. You do not have to submit a recertification until the new due date.
- If you didn’t recertify your income by February 20, 2025, the loan servicer recalculated your payment, and the new payment amount doesn’t take your income into account. To lower your payment, you must recertify your income as soon as possible.
- If your loan recertification date was on or after March 18, 2025, you had to submit your recertification on or after February 21, 2025:
- If your recertification deadline was on or after February 21, 2025, your deadline has been extended one year. You don’t need to submit a new recertification until the deadline.
Managing Your Loans
Changes to IDR plans have a significant impact on borrowers. If your repayment plan is no longer available and you cannot afford your payments, you can apply for a different IDR plan to potentially reduce your payment amount. Apply online for an IDR plan or contact your loan servicer to discuss your options.
