- Existing income-driven repayment (IDR) plan borrowers will see their recertification dates extended automatically.
- New IDR applicants will not be processed during the pause and may need to choose a temporary forbearance or an available fixed repayment plan.
- Public Service Loan Forgiveness (PSLF) employment certifications will continue to be processed.
Millions of federal student loan borrowers on income-driven repayment (IDR) plans face uncertainty as the Department of Education finalizes its guidance on the current processing freeze. According to sources familiar with the matter, official guidance will extend recertification deadlines for borrowers already enrolled in an IDR planensuring they remain in their current repayment structure without disruption.
This new guidance is expected as early as today, but may come early next week. This guidance is needed as borrowers have been receiving mixed messages from loan servicers on the status of their loans.
While new IDR applications will not be processed, existing borrowers will not be removed from their plans or forced into forbearance. However, borrowers who were planning to switch to an IDR plan but had not yet been approved may face limited options. They can either enter a temporary forbearance or enroll in a standard fixed repayment plan.
The processing pause follows a federal court injunction blocking the Saving on a Valuable Education (SAVE) plan, a new income-driven repayment plan introduced by the Biden administration. The injunction expanded to impact other repayment plans, which forced the Department of Education to halt all IDR processing, including applications and recertifications, for at least 90 days, while they work through the logistics of the ruling.
Despite this, Public Service Loan Forgiveness (PSLF) employment certifications will continue, and borrowers already enrolled in PSLF will remain on track for loan forgiveness.
How IDR Certification Will Be Handled During The Processing Pause
For borrowers currently on an IDR plan, the Department of Education is expected to instruct loan servicers to automatically push back recertification deadlines. This means:
- No immediate action is needed for borrowers who were due to recertify their income.
- Payments will remain the same until further notice.
- No borrower will be forced into forbearance or a different repayment plan.
The bottom line is borrowers who are in an IDR plan (such as IBR, PAYE, ICR) do not need to submit new paperwork during this period. Servicers have been instructed to maintain existing payment structures and prevent disruptions. Borrowers on existing plans should not be forced into another repayment plan or into forbearance.
The new date for recertification may be as far out as one year. Loan servicers may not have this communication until it’s officially announced and communicated.
Important Note: There are have been cases of borrowers whose re-certification was in the last 1-2 weeks before this guidance and they may have been forced to change plans or enter forbearance by recommendation of their loan servicer. We don’t have any specific guidance on what might happen to this sub-set of impacted borrowers.
However, borrowers attempting to enroll in IDR for the first time will face a temporary roadblock. Since new applications cannot be processed, they will need to either enter a forbearance—which pauses payments but allows interest to accrue—or opt into an available standard repayment plan.
Finally, borrowers currently enrolled in the SAVE repayment plan will remain in forbearance pending the outcome of the court cases.
How Does This Affect PSLF?
Despite the broad suspension of IDR processing, PSLF applications are still moving forward. Borrowers working toward loan forgiveness under PSLF should continue submitting employment certification forms as required. Since PSLF relies on payment history rather than direct IDR processing, it remains unaffected by the current court order.
Fixed repayment plans, including standard 10-year, graduated, and extended repayment plans, are also unaffected. Borrowers who are not on an IDR plan can still apply for these options if they want a structured repayment alternative.
However, only the standard 10-year plan is eligible for Public Service Loan Forgiveness. Opting into a non-qualifying plan could prevent future loan forgiveness under PSLF.
What Borrowers Should Do Next
With borrowers facing re-certification dates as early as this week, it’s important for borrowers to watch their loans closely.
- If you are on an IDR plan: No action will be required. Your recertification date will be extended automatically. Continue making your regular payments. Watch your loan account to ensure the date moves.
- If you are applying for IDR for the first time: Your application will not be processed during the pause. Consider temporary forbearance if needed or explore standard repayment plans.
- If you are working toward PSLF: Keep submitting your employment certifications. Your qualifying payments and PSLF progress remain unchanged.
- If you are struggling with payments: Contact your loan servicer to discuss available options, including deferment, forbearance, or a standard repayment plan.
While uncertainty remains around when IDR processing will resume, borrowers currently on an IDR plan can rest assured that they will not lose their repayment plan during this pause.
The Department of Education is expected to provide further updates in the coming week.
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