For 13 million borrowers, income-driven repayment (IDR) plans provide critical financial relief. However, President Trump has announced changes to the Department of Education, and federal courts have issued injunctions blocking aspects of IDR plans. As a result, applications are currently paused; you can apply, but loan servicers aren’t processing applications.
With IDR plans not in effect, some borrowers have reported steep increases in payments, with some paying hundreds or even thousands more per month.
However, there are ways to get relief: you can apply for a deferment or forbearance. Here’s what you need to know about these programs and how to apply.
What’s Happening to Income-Driven Repayment Plans?
IDR plans are nothing new; the first plan went into place in 1995. These plans were created to give some financial relief to borrowers who could not afford their payments. The plans base borrowers’ payments on a percentage of their discretionary income, and they have longer repayment terms. Rather than the 10-year standard repayment plans, borrowers enrolled in an IDR plan make payments for 20 to 25 years.
There were previously four IDR plans. Former President Biden introduced the Saving on a Valuable Education (SAVE) plan to replace Revised Pay As You Earn (REPAYE) in 2024, a plan that would slash payments for millions of borrowers. However, the SAVE plan faced legal challenges, and federal courts issued injunctions that blocked the SAVE plan and other aspects of the other IDR plans from going into effect.
With the injunction, applications for IDR plans were paused. As of April 2025, loan servicers are accepting new applications, but they’re not processing them yet, so borrowers are unable to get into a new plan right now. For millions of borrowers who are unable to afford their current payments, that issue is a major problem.
Deferment and Forbearance: Alternatives to IDR Plans
If your payments are higher than you can afford, you can request a deferment or forbearance. Under federal deferment and forbearance programs, you may be able to pause or reduce your payments for a limited period. Deferments and forbearance are quite similar, but they have some key differences.
Deferments
A deferment is for those who are experiencing financial difficulties due to job loss, medical treatments for cancer, military service, or who are in school. If you have federal subsidized loans, no interest accrues during the deferment, but it does accrue on all other federal loans.
Forbearance
With forbearance, interest accrues on all loan types during the period of postponement. There are two types of forbearance:
- General forbearance: Sometimes known as discretionary forbearance, your loan servicer decides whether or not to accept your request on a case-by-case basis.
- Mandatory forbearance: With mandatory forbearance, if you meet the program requirements, the loan servicer must grant you the forbearance. For example, debt burden forbearance applies to borrowers whose total federal loan payments are equal to 20% or more of their total monthly gross income. If you meet that criteria, the loan servicer is required to honor your request for forbearance.
Pros and Cons of Deferments and Forbearance
Deferment and forbearance are better options than missing your payments, but there are some downsides to consider:
Pros
- You can pause payments for months: Depending on the type of deferment or forbearance you’re eligible for, you can pause your payments for months at a time.
- Forbearance can be renewed: Most forms of deferment and forbearance can be renewed, allowing you to postpone your payments for years.
- You can avoid delinquency and default: With deferment and forbearance, you can postpone your payments without becoming delinquent or defaulting on your loans.
Cons
- Relief is temporary: There are limits to how long you can be in deferment or forbearance, so they’re not long-term solutions.
- You won’t make progress toward loan forgiveness: While you’re in deferment, you won’t earn credit toward loan forgiveness programs.
- Interest may accrue: Depending on the type of loans you have and whether you qualify or a deferment or forbearance, interest will likely continue to accrue while your payments are suspended.
How to Apply for Deferment or Forbearance
If you need to apply for a deferment or forbearance, follow these steps:
- Decide which type of deferment forbearance to apply for: You can review the types of deferments and forbearance available — and the requirements for each — on the StudentAid.gov website.
- Think about your desired outcome: You have the option of pausing your payments completely, or requesting a reduced payment amount. With reduced payments, less interest will accrue, so it can be a good idea if you can afford partial payments.
- Collect documentation: If you’re requesting deferment or forbearance due to illness or job loss, collect documentation, such as your unemployment benefits or a copy of your medical bills.
- Fill out the application: You can download a paper application, or you can fill out and submit an application online. You can find the application through your loan servicer:
