Key Points
- Borrowers can now submit Income-Driven Repayment (IDR) applications online, with most processed in under a week.
- Those pursuing Public Service Loan Forgiveness (PSLF), switching IDR plans, or recertifying lower income may benefit most from applying now.
- Applications for SAVE and "lowest monthly payment" requests remain paused, leaving some borrowers in administrative limbo.
After months of delays, federal student loan borrowers can now submit applications for most Income-Driven Repayment (IDR) plans and expect processing in as little as three to seven days. Reports from MOHELA and feedback from borrowers indicate the system update has worked, with forms for IBR, PAYE, and ICR now moving quickly.
Previously, IDR applications we paused due to the court injunction requiring system updates to be able to process eligible plans, while sidelining ineligible plans.
The Department of Education responded by placing many borrowers into administrative forbearance or delaying income recertification deadlines until 2026.
Now, the site once again accepts online applications and is processing them relatively quickly. Applications filed after April 27, 2025, with complete income data are being turned around in under a week. Borrowers who applied before that date without income info, or for an ineligible plan, are being encouraged to reapply so their application can be processed without delay.
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Who Should Submit A New IDR Application?
The reactivated application process is most useful for a few groups:
- Borrowers close to Public Service Loan Forgiveness (PSLF): Switching into an eligible IDR plan can help ensure qualifying months without needing to buy back prior periods.
- Those on other IDR plans: Borrowers currently enrolled in another IDR plan but wishing to switch into a plan that better aligns with their income or family size should consider applying now.
- Borrowers looking to recertify income: If household income has dropped since your last recertification, submitting a new application may reduce your monthly payments sooner.
Each of these situations can benefit from quick action. The new system allows for timely processing and gives borrowers more certainty as they plan their budgets for the year ahead.
Related: Should You Leave PAYE Or ICR Now?
Who Should Still Be Waiting?
Borrowers who selected the SAVE plan or chose "lowest monthly payment" on their original application are still on hold. These applications remain paused due to ongoing litigation over the SAVE plan and pending guidance from the Department of Education. Borrowers in this group remain in administrative forbearance and are not being required to make payments.
This means interest is not accruing, and time in forbearance would require PSLF buyback to qualify for PSLF. That said, some borrowers may prefer to exit forbearance and request another plan, such as IBR or PAYE, to resume payments and make progress toward their repayment goals.
To evaluate options, borrowers can use the Loan Simulator at StudentAid.gov to compare plans and monthly payments. Once a new plan is selected and submitted with income documentation, processing is now faster and more reliable.
For other borrowers, this can be a great time to improve the rest of their financial situation:
- Pay off other debts
- Build an emergency fund
- Contribute to an IRA
While it is frustrating to not be making progress on your loan, this can be a great time to make progress elsewhere in your financial life.
What Should Borrowers Do Now?
Those who are eligible and want to apply should visit StudentAid.gov/idr to begin the process.
This new processing time is a great opportunity for those on track for PSLF and want to continuing making progress without buy back.
Borrowers still affected by SAVE should keep monitoring their accounts and be prepared to act when the forbearance ends. In the meantime, their loans remain paused and interest-free.
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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.