Overview

• The Education Department halted IBR loan discharges on July 23 to comply with injunctions that previously blocked forgiveness under the SAVE, PAYE and ICR plans.
• Officials say discharges will resume once system updates accurately count qualifying payments, but no timeline has been provided.
• Borrowers are instructed to continue making IBR payments and will receive refunds for any overpayments once forgiveness processing restarts.
• Interest will begin accruing on loans in forbearance starting August 1, which may increase balances if payments are not maintained.
• Public Service Loan Forgiveness and other non–income-driven discharge options remain available as alternative relief pathways.