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Department of Education to Reopen Access to Select Income-Driven Repayment Plans

Applications for Income-Based Repayment, Pay as You Earn, and Income-Contingent Repayment plans will resume, while SAVE and REPAYE remain blocked following a court ruling.

Trump speaking at the White House on Thursday following the crash.
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Overview

  • The Department of Education is preparing to reopen applications for certain income-driven repayment (IDR) plans after a weeks-long suspension.
  • Borrowers will soon be able to enroll in Income-Based Repayment, Pay as You Earn, and Income-Contingent Repayment plans, but SAVE and REPAYE plans remain unavailable due to a court decision.
  • The US Court of Appeals for the Eighth Circuit ruled SAVE and REPAYE plans likely illegal, prompting the suspension of all IDR applications in February 2025.
  • Student loan servicers have been instructed to resume processing IDR applications within two weeks, according to sources familiar with the plans.
  • Annual income recertification deadlines for borrowers already enrolled in IDR plans have been extended to February 2026, easing immediate financial pressures.