Overview

• Discharges under Income-Based Repayment remain on hold, and the department says system changes could extend into winter 2025.
• Congress’ One Big Beautiful Bill Act removed IBR’s partial-financial-hardship requirement, yet borrowers continue to report income-based rejections.
• The American Federation of Teachers has sued, alleging improper denials of IBR access and withholding of cancellations under the new rules.
• The department links the freeze to the SAVE plan being blocked by the Eighth Circuit, which altered how periods like forbearance count toward forgiveness.
• Officials say payments made after borrowers became eligible will be refunded when discharges resume, while advocates warn the delays are increasing borrower strain and default risk.