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4w ago

Senate Democrats Press Education Department as IBR Forgiveness Freeze Continues

The department cites a SAVE-related court injunction requiring recalculations before discharges can restart.

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Ranking Member of the Senate Committee on Health, Education, Labor, and Pensions Sen. Bernie Sanders (I-VT) questions Susan Monarez, President Donald Trump’s nominee to be the Director of the Centers for Disease Control and Prevention (CDC), during her confirmation hearing before the Committee in the Dirksen Senate Office Building on June 25, 2025 in Washington, DC.
A young woman looks over pages of bills
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Overview

  • Sen. Bernie Sanders and 10 Senate Democrats sent Education Secretary Linda McMahon an Aug. 18 letter demanding an explanation, a resumption timeline, and answers to 11 questions by Aug. 30.
  • Lawmakers dispute the department’s rationale, saying no court order requires halting IBR discharges and criticizing the lack of advance notice to Congress and borrowers.
  • The Education Department says the 8th Circuit’s February injunction affecting SAVE eliminated forbearance credit toward forgiveness, necessitating new payment counts before IBR discharges can proceed.
  • About 2.1 million borrowers holding roughly $131.5 billion in loans are enrolled in IBR, and officials say payments made after eligibility will be refunded once discharges resume.
  • Democrats warn delays could expose eligible borrowers to tax bills once a temporary tax break ends after 2025, as legacy IDR plans are phased out through 2028 and borrowers face new choices like the Repayment Assistance Plan.