Why IDR Plans for Student Loans Are Currently Unavailable

By
Emma Bennett
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IDR student loans plans

The Department of Education just hit pause on online applications for Income-Driven Repayment (IDR) plans after a federal court ruling blocked parts of the repayment system.

If you’re wondering what that means for your student loans, here’s the lowdown, no fluff, just facts.

What Happened?

  • The 8th Circuit Court of Appeals ruled that the Secretary of Education didn’t have the authority to launch the Saving on a Valuable Education (SAVE) plan, part of Biden’s push to ease student loan debt.
  • As a result, IDR plans like Income-Contingent Repayment (ICR), Income-Based Repayment (IBR), Pay As You Earn (PAYE), and SAVE are now off the table, at least for new applicants.
  • The online application buttons for loan consolidation and these repayment plans are currently grayed out on the Federal Student Aid website.

Why It Matters

  • Borrowers already in the SAVE plan have been in forbearance since July due to ongoing legal battles.
  • Older repayment plans that were reopened to give borrowers more options are also now unavailable.
  • It’s still unclear if borrowers currently in IDR plans will be moved to different repayment options or if applications will reopen.

What You Should Do Now

  • Keep checking the Federal Student Aid website for updates.
  • Reach out to your loan servicer to understand your current repayment options.
  • Stay ready to adjust your repayment strategy depending on future court decisions.

Right now, if you were hoping to apply for an IDR plan, you’ll have to wait until the Department of Education sorts out the legal mess. No timeline yet, so stay tuned for updates and be ready to pivot when applications reopen.

Emma Bennett
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