If you are one of the millions of Americans working hard to pay off your student loans under an income-based repayment plan, there is bad news. The Department of Education has paused student loan forgiveness for those enrolled in the Income-Based Repayment (IBR) plan—affecting roughly 2 million people. This comes after other forgiveness programs were already halted by court rulings.
Let us break down what is happening and what it means for you.
Why student loan forgiveness under IBR is paused
The IBR plan is one of four federal income-driven repayment (IDR) programs that adjust your monthly payment based on your income and offer loan forgiveness after 20 or 25 years of payments. Until now, many borrowers were on track for forgiveness through IBR.
But this week, the Department of Education confirmed that forgiveness under IBR is now paused.
“The agency has temporarily paused discharges for IBR borrowers in order to comply with ongoing court injunctions regarding the Biden Administration’s illegal attempts at student loan forgiveness,” said Ellen Keast, Deputy Press Secretary for the Department of Education.
This decision was made to comply with recent court rulings related to the SAVE plan, which was part of a broader effort to fix older repayment systems.
What income-driven repayment plans are affected?
This pause is not happening in isolation. It is part of a wider legal challenge that has already frozen forgiveness under other income-driven repayment plans.
Here are the affected plans:
- SAVE (Saving on a Valuable Education)
- PAYE (Pay As You Earn)
- ICR (Income-Contingent Repayment)
- IBR (Income-Based Repayment) – now newly paused
That means all four federal income-driven repayment plans are currently blocked from providing forgiveness.
Why the SAVE plan matters in this situation
The SAVE plan was launched to fix problems with the older IDR programs. It quickly became popular, with about 8 million borrowers enrolled by the end of 2024.
Even though the SAVE plan is a different program, some of the payments made under it could be counted toward forgiveness in the IBR program. Because of that overlap, the Department decided to also pause forgiveness under IBR until everything is sorted out legally.
This has created a confusing and frustrating situation for borrowers who were depending on these timelines.
When will forgiveness resume for IBR borrowers?
Right now, there is no clear date for when forgiveness under the IBR plan will start again.
The Department of Education said it is working on recalculating payment counts and making sure that only qualified payments are counted. That is why the process is on hold.
“Legal IBR discharges will resume as soon as the Department is able to establish the correct payment count,” said Keast.
So for now, borrowers are stuck in limbo.
Should you keep making IBR payments?
Yes — and this part is really important.
If you are enrolled in IBR and close to reaching forgiveness, you should continue making your monthly payments. The Department has said that it will refund any payments made after your official forgiveness eligibility date once discharges resume.
So do not stop paying if you can help it.
- Keep paying to stay in good standing
- Ask about forbearance if you need a break (but be aware interest will continue to grow)
- Stay in contact with your loan servicer for updates on your specific account
What can borrowers do now?
Here are a few things you can do while you wait:
- Check your payment count history to see how close you are to forgiveness
- Sign up for updates from your loan servicer or the Federal Student Aid website
- Save records of all payments, in case there are disputes later
- Talk to a financial aid advisor if you are unsure of your next steps
This situation is frustrating, especially for those who have been paying for decades. But staying informed and keeping up with your payments can help you stay ready when forgiveness resumes.
Related article:
What happens to student loans with Trump closing down much of the Education Department
