Overview

• The U.S. Department of Education has reopened applications for older income-driven repayment (IDR) plans, including IBR, PAYE, and ICR, following a month-long pause.
• The SAVE plan, which offered more generous repayment terms, remains unavailable due to a court ruling that deemed parts of it likely illegal.
• Loan servicers are updating their systems to comply with the court's directives, delaying the processing of new applications.
• Borrowers who missed recertification deadlines during the pause may face higher payments and need to reapply to restore income-based payments.
• The pause and limited reopening have disrupted borrowers' progress toward Public Service Loan Forgiveness, creating financial uncertainty for many.