Particle.news
Download on the App Store
10 ARTICLES
·
4w ago

Education Department Reopens Applications for Older Student Loan Repayment Plans

The SAVE plan remains blocked by a court ruling, leaving borrowers with less generous options as processing delays are anticipated.

Stock image/file photo: A mortarboard with U.S. Dollar bills.
FILE - President Joe Biden departs after delivering remarks on student loan debt at Madison College, Monday, April 8, 2024, in Madison, Wis. (AP Photo/Evan Vucci, File)
Trump speaking at the White House on Thursday following the crash.
Image

Overview

  • The Department of Education has restored access to applications for older income-driven repayment (IDR) plans, including IBR, PAYE, and ICR, after a month-long pause.
  • The SAVE and REPAYE plans remain unavailable due to a federal court injunction, limiting borrowers to less affordable repayment options.
  • Loan servicers are expected to resume processing IDR applications within two weeks, but delays are likely as systems are updated to comply with legal rulings.
  • The American Federation of Teachers recently filed a lawsuit against the Department of Education over the removal of IDR applications, highlighting ongoing legal disputes.
  • The Department is working on a revised version of the SAVE plan to meet court requirements, but it is not expected to be available until late 2025.