Key Points
- The Department of Education has halted all income-driven repayment (IDR) plan applications, including online and paper submissions, following a court order.
- Borrowers who missed their IDR recertification deadline may be moved into the standard repayment plan, unless they request deferment or forbearance.
- Paper applications for loan consolidation are still being processed, but they will not include income-driven repayment options.
The Department of Education has stopped processing all income-driven repayment (IDR) applications, leaving millions of borrowers the inability to change their student loan repayment plans. The decision, which applies to both new and existing applicants, comes after a court order expanded an injunction on the SAVE student loan repayment plan—but unexpectedly blocked access to all IDR plans in the process.
Borrowers who were set to recertify their IDR plans to maintain lower monthly payments are now at risk of being automatically placed into the standard 10-year repayment plan, which could dramatically increase their required payments. Those unable to afford standard payments will need to request a deferment or forbearance, though interest will continue to accrue on their balances during that time.
Meanwhile, loan consolidation applications are still being processed—but with a major restriction. Consolidated loans will not qualify for income-driven repayment plans during the freeze, leaving borrowers in limbo as they wait for legal challenges to be resolved.
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How the Courts Blocked IDR Plans And Why It’s Unknown When They’ll Return
The latest freeze on income-driven repayment applications stems from a lawsuit filed by Republican-led states challenging the legality of Biden’s Saving on a Valuable Education (SAVE) plan.
In August 2024, the U.S. Court of Appeals for the 8th Circuit issued an injunction that blocked further loan forgiveness under SAVE, arguing that the Education Department overstepped its authority. The lawsuit claimed that Congress never authorized such sweeping debt cancellation under the 1993 law that governs income-contingent repayment.
Last week, the court expanded the injunction, sending the case back to a lower court and prohibiting the Education Department from processing loan forgiveness under any income-contingent created repayment plans. However, it also called into question these other repayment plans as well, and the Department appears to not want to process new borrowers into questionable repayment plans.
The ruling should not have impacted older IDR plans like Income-Based Repayment (IBR), which were created under different legal statutes, but the Education Department uses a single, combined application for all IDR plans—making it impossible to process any without violating the injunction.
This bureaucratic entanglement has effectively shut down access to all income-driven repayment options, leaving millions of borrowers without clarity on when—or if—the plans will return.
@thecollegeinvestor Here’s a recap of everything happening with IDR (income driven repayment plans) and what you should do about re-certification and changing plans in the short term. #studentloans #studentloanforgiveness #studentloandebt ♬ original sound - The College Investor
Frustration Among Borrowers
There is growing frustration among the millions of student loan borrowers due to a lack of communication about what's happen, why, and the timeline for resolution. The injunction happened on February 18, 2025, the Department removed the PDF files from StudentAid.gov on February 25, 2025, but as of February 28, 2025 there has been no real communication about what's happening other than a notice on StudentAid.gov:
The only information is coming from news media like ours, and other experts posting in the Student Loan sub-Reddit, as well as student loan experts on social media platforms.
Meanwhile, the Department of Education has put out multiple press releases over the last two weeks related to Title IX and DEI content.
What Borrowers Should Do Next
With IDR applications frozen, borrowers need to both stay informed and monitor updates to make sure they don't end up in an unaffordable repayment plan. Here’s what you can do:
- Check Your Loan Status: Many borrowers with re-certification dates upcoming have seen those pushed out to 2026. That means they won't have to re-certify their existing repayment plan until that time. If you were enrolled in an IDR plan and missed your recertification deadline, you may have been placed into the standard 10-year repayment plan. Login or contact your loan servicer to confirm your status.
- Request Deferment or Forbearance: If you cannot afford standard repayment, ask your loan servicer for a deferment or forbearance to temporarily pause payments. Interest will continue to accrue, but it may help avoid delinquency.
- Monitor Updates from the Education Department: The Department of Education has said this processing freeze will last at least 90 days, but legal challenges could extend it. Stay informed on when applications may reopen.
- Submit a Paper Consolidation Application if Needed: Borrowers who still want to consolidate federal loans can submit a paper application, but should be aware that income-driven repayment plans are not currently available.
- Run The StudentAid Loan Simulator: If repayment plans do change, you want to know what your monthly payment would be in another plan, such as Income-Based Repayment (IBR). Use the loan simulator to understand your other options.
For now, borrowers are left with few options, as the Education Department and loan servicers pause all processing of income-driven repayment plans. Until a resolution is reached, millions of student loan borrowers will remain in financial limbo.
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Editor: Colin Graves
Robert Farrington is the founder of The College Investor and is widely recognized as one of the nation’s leading voices on student loan debt and saving for college. He holds an MBA from UC San Diego Rady School of Management and has spent over 15 years researching, writing, and advising on student loans, 529 plans, financial aid programs, and saving and investing for young professionals.
Robert has been featured in the The New York Times, The Wall Street Journal, The Washington Post, NBC News, and Forbes, where he has been a regular personal finance contributor for over a decade. His work combines both professional expertise and personal experience – he successfully navigated his own student loan repayment journey and has helped thousands of readers do the same.
He is committed to making the intersection of personal finance and education transparent and accessible. You can learn more about Robert on the About Page or on his personal site RobertFarrington.com.