Update on the Stoppage of all IDR applications

Note: On 3/26/25, online applications were re-opened for income-driven repayment plans including IBR, PAYE, and ICR. They are not currently processing the applications, but the submission window is re-opened.

Original article:

The Federal Government has stopped processing Income Driven Repayment (IDR) plan applications including annual income re-verification. This includes all applications for new enrollees, those changing plans, and those who were scheduled to provide updated income documentation to recalculate their payment in Pay As You Earn (PAYE) or Income-Based Repayment (IBR). This also includes both online applications and paper applications for those who were previously told they could print/sign/scan an application.

For those who have submitted applications mentioned above:

• If a pending application has been received, forbearances are automatically being placed on loans to suspend payment.
• Visit StudentAid.gov/Save-Action for more information or log in to check your loan status information.

For those who had an upcoming IDR Recertification of Family Size and Income (Anniversary Dates)

• Recertification of IDR plans will not be required until at least February 2026.
• SAVE plan recertification dates were already extended beyond September 2025 and will be moved beyond February 2026.
• PAYE and IBR plans are in the process of being extended.
  • • This will take a few weeks to occur and borrowers will be updated upon completion.

For those who have already tried to recertify their income/family size in PAYE or IBR and were already placed in forbearance over the last 4 weeks:

• There has not been communication as to when this forbearance will end, and you can resume payments at the previous calculation until your 2026 recertification date.

For those who have already tried to recertify their income/family size in PAYE or IBR and opted to make the elevated/fixed payment in lieu of forbearance:

• There has not been communication as to whether you will automatically be placed in forbearance.
• You should consider speaking with a financial advisor with a Certified Student Loan Professional (CSLP®) designation to determine whether the fixed calculation that was presented actually counts as a qualifying payment towards Public Service Loan Forgiveness (PSLF).

For Medical Interns who have been in limbo since the Savings on Valuable Education (SAVE) forbearance was enforced in July 2024:

• You will continue in this forbearance which currently has no payments due, no interest accruing, and no time counting towards PSLF
• If you have a pending IDR application, you will be placed into this forbearance and communication that you have a large payment coming due can be disregarded.
  • • The above bullet point is often the most anxiety-inducing for PGY1’s.
    • Many are being told to jump on the phone and wait on hold for hours to receive confirmation of forbearance status to feel a small sense of relief that they are not required to make a massive payment or deal with the consequences of being delinquent.
    • You can also download a forbearance or deferment form, from StudentAid.gov/forms, making sure the form is appropriate and being completed properly.
• You should consider speaking with a financial advisor with a CSLP® designation to determine whether actually have a pending application (are eligible for this forbearance) or were instead defaulted into a Standard repayment plan and actually have a payment coming due.

For those who would like to leave an IDR Plan:

• You can choose to exit your IDR plan and move into a fixed payment repayment plan.
• Changing IDR plans,uch as moving from SAVE to IBR, is not currently available.

Questions regarding your situation?

To schedule a no-obligation, introductory conversation with our Financial Advisor specializing in Student Loan Guidance, Kyle Flynn, CSLP, use this link here. Kyle provides financial planning services with a focus on your current financial position and debt management.