A student studies in the Perry-Castaneda Library at the University of Texas at Austin, Feb. 22, 2024.
Brandon Bell | Getty Images
The Trump administration has taken down the applications for popular student loan repayment plans from the U.S. Department of Education‘s website, leaving millions of borrowers with fewer options for now.
Borrowers are unable to access the applications for income-driven repayment, or IDR, plans, as well as the online application to consolidate their loans.
Both applications are critical for borrowers pursuing lower monthly payments and loan forgiveness through an IDR plan, as well as the related Public Service Loan Forgiveness program.
The disruption is due to a recent decision by the 8th Circuit Court of Appeals that blocked the Biden administration’s new IDR plan, known as SAVE, or Saving on a Valuable Education, as well as the loan forgiveness component under other IDR plans.
Congress created IDR plans in the 1990s to make borrowers’ bills more affordable. The plans cap borrowers’ monthly payments at a share of their discretionary income and cancel any remaining debt after a certain period, typically 20 years or 25 years.
More than 12 million people were enrolled in the plans as of September 2024, according to higher education expert Mark Kantrowitz.
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Here’s what to know about the changes.
Applications could be down for ‘a few months’
The IDR plan applications shouldn’t be down for too long, Kantrowitz said.
“I expect it will be temporary, lasting a few months while they make changes,” he said.
The Education Department is likely tweaking the applications to make sure all their plans comply with the new court order, as well as removing the SAVE plan altogether.
An Education Department spokesperson said the agency is “reviewing repayment applications to conform with the 8th Circuit’s ruling.”
“As a result, the IDR and online loan consolidation applications are currently unavailable,” they said, adding that borrowers can still submit a paper loan consolidation application.
Betsy Mayotte, president of The Institute of Student Loan Advisors, a nonprofit, also said she didn’t expect a long wait time before the applications return.
“I get the sense the ED is working hard to get the changes made,” Mayotte said.
Impacts of the plans going dark
Unfortunately, there’s nothing federal student loan borrowers who want to sign up for an IDR plan or switch between the plans can do right now, Kantrowitz said.
Borrowers who are due to recertify their IDR plans will also have to sit tight for the time being, Mayotte said. Those enrolled in IDR plans typically have to submit their income information annually.
While the legal challenges against SAVE were playing out, the Biden administration put enrollees into an interest-free forbearance. That payment pause is likely to end soon, experts said. By then, borrowers should be able to access other IDR plans.
Those who graduate in the spring are typically entitled to a six-month grace period before their first bill is due, Kantrowitz pointed out.
As a result, they won’t need to sign up for a repayment plan until November or December. The plans should be available again by then.
Options if you can’t afford your student loan bill
The disruption to IDR plans will be especially difficult for borrowers who can’t afford their current student loan bill and now can’t access a more affordable option, Mayotte said.
These borrowers can call their loan servicer and explain their situation.
If you’re unemployed, you can request an unemployment deferment with your servicer. If you’re dealing with another financial challenge, meanwhile, you may be eligible for an economic hardship deferment.
Other, lesser-known deferments include the graduate fellowship deferment, the military service and post-active duty deferment and the cancer treatment deferment.
Student loan borrowers who don’t qualify for a deferment may request a forbearance.
You should first see if you qualify for a deferment, experts say. That’s because your loans may not accrue interest under that option, whereas they almost always do in a forbearance.
Under forbearance, borrowers can keep their loans on hold for as long as three years. However, because interest accrues during the forbearance period, you can be hit with a larger bill when the break ends.
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