The U.S. Education Department has temporarily suspended the online and paper applications for all income-driven repayment (IDR) plans as a result of a recent legal ruling in a lawsuit against the new IDR plan, Saving on a Valuable Education (SAVE). According to an Education Department spokesperson, a federal Circuit Court of Appeals injunction has prevented the implementation of the SAVE Plan and parts of other IDR plans, leading to the current unavailability of IDR and online loan consolidation applications.
Borrowers are currently unable to apply for the SAVE plan or any of the other three IDR plans: Paye as You Earn (PAYE), Income-Contingent Repayment (ICR), or Income-Based Repayment (IBR). The online IDR application was previously unavailable last year from July through September, with paper IDR applications serving as a workaround, albeit with processing delays.
Abby Shafroth, co-director of advocacy at the National Consumer Law Center, highlights the increased risk of harm to borrowers this time around. The temporary student loan “on ramp” that previously prevented borrowers from delinquency or default ended on Sept. 30, potentially penalizing borrowers who cannot afford standard payments but are unable to apply for an IDR plan.
Affected borrowers include those who need to recertify their income for IDR plans. Borrowers who miss their recertification deadline could face being removed from their IDR plan and see their balance increase with capitalized interest. Borrowers with loans in the SAVE plan have had their recertification deadlines extended to at least February 2026, according to Education Department guidance.
Student loan servicers are awaiting guidance from the Education Department on recertification for the other three IDR plans. In the meantime, servicers will assist borrowers with pending certification deadlines to avoid penalties.
Recent graduates seeking to enroll in an IDR plan are advised to estimate their payments and keep an eye on IDR application news. They should apply for an IDR plan when applications reopen and seek guidance from their servicer.
Overall, borrowers are encouraged to stay informed, contact their servicers, and explore their options during this period of uncertainty regarding IDR plans.
If you need help with your student loans, consider reaching out to your loan servicer or a financial advisor for guidance on the best options available to you. Stay informed about any changes in student loan policies and programs that may affect your repayment plan. It’s important to stay proactive and informed about your options to manage your student loan debt effectively.
For the most up-to-date information and personalized assistance, here are some ways to access student loan help:
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Call your loan servicer. Your loan servicer is there to help with any questions regarding your student loan repayment. You can find the name of your assigned servicer on your studentaid.gov dashboard. Before calling, make sure to prepare and take notes during the conversation in case you encounter any issues in the future or need to file a complaint.
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Reach out to your college’s financial aid department. A financial aid officer from your college can guide you through your repayment options, even if you have graduated and left campus years ago. However, for actions like applying for forbearance or deferment, you will need to work directly with your servicer.
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Contact borrower assistance organizations. Trusted nonprofit organizations like the National Consumer Law Center provide resources to assist borrowers in understanding and navigating their repayment options.
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