What happened to the IDR application?
Last Friday (2/21/2025), the Department of Education (ED) took down the electronic applications for all income-driven repayment (IDR) plans and consolidations. This week (2/25/2025), they also removed the paper/PDF applications for IDR plans.
ED cites a ruling from the 8th Federal Circuit Court of Appeals last week. The court affirmed the injunction of SAVE and laid the groundwork for repealing the entire plan and also called into question the authority of the Department of Education (ED) to forgive loans under the ED-created plans: ICR, PAYE, and SAVE/REPAYE.
According to reporting from the Washington Post, loan servicers have been told to pause processing of all new and prior applications, including recertifications for at least 90 days. In removing all of the applications, ED effectively blocked IBR and PSLF, which should not have been affected by the recent court ruling.
While the recent injunction significantly threatens SAVE and questions the forgiveness provisions for ICR, PAYE, and REPAYE, IBR and PSLF are still explicitly permitted by law. Theoretically, you should be able to apply for IBR and still receive IBR forgiveness or PSLF forgiveness while continuing to make qualifying payments. Practically, that could be a different story, at least in the short term.
I’m using an IDR now. What should I do?
Previously, when applications have been paused, borrowers have received a forbearance or some kind of pause on payments or interest. The only pause on payments or interest available now is for folks in the SAVE general forbearance.
For those in the SAVE general forbearance, you’re still not required to renew your income information until at least 2026. However, depending on your Anniversary Date, be prepared for some kind of payment notice from your loan servicer if your recertification has not been pushed into 2026.
If you’re using another IDR (ICR, PAYE, IBR), watch your loans carefully for changes and check your Anniversary Dates. You can check your IDR Anniversary Dates in the VIN Foundation My Student Loans tool.
It’s not clear what happens to borrowers using IDR plans where their Anniversary Dates have recently passed or will pass during the pause. Watch for changes in your student on studentaid.gov under your My Activity section or your loan servicer portal. Make sure your contact information is up to date in your studentaid.gov and your loan servicer accounts to receive any communications regarding your loans.
Expert Tip: Turn off Autopay
Consider deactivating your autopay feature with your loan servicer if you’re using it. Since we don’t know what is going to happen with loans in the coming months, you may not want your loan servicer to automatically process a higher payment than you’re expecting.
IBR is a special use case. If you’re in IBR 2009 or IBR 2014 now and your Anniversary Date is approaching, I recommend submitting your recertification information manually. We have a copy of the IDR application available in the WikiDebt section of the Student Debt Center.
Your loan servicer may reject or ignore applications during the pause, but it could be worth a shot, particularly if you’re in IBR 2009 or IBR 2014 now and your Anniversary Date is approaching.
Unlike other IDRs, the IBRs can result in unpaid interest capitalization if your updated income information is not processed on time. If you submit your required renewal paperwork at least 35 days before your Anniversary Date, you might be able to get any unpaid interest capitalization reversed after this pause ends. Make sure you can prove that it was their fault and not yours for not processing the recertification on time.
Listen to the recent Veterinary Pulse Podcast on Student Loan Repayment:
Low-income or high monthly student loan payment scenarios
If you experience low or no income, or a monthly student loan payment that is greater than 20% of your taxable income, you can request a deferment or forbearance.
Forbearance and deferment requests have mostly been obsolete with access to income-driven repayment plans. However, since applying for IDRs or updating your payment for an IDR is blocked, a deferment or forbearance request could be your only option to pause your monthly student loan payments.
Unpaid interest will continue to accrue during deferment or forbearance and could be added to your principal once your payment relief ends.
Here are two types of requests that may help you during periods of low income or if your monthly payment seems higher than your budget will allow:
- Economic Hardship Deferment: To be eligible, your current or recent AGI must be less than 150% of the federal poverty guidelines for your family size and state of residence. Eligible for up to 36 months. Unpaid interest will capitalize when you leave this deferment.
- Student Loan Debt Burden Forbearance: To be eligible, your monthly student loan payment must be more than 20% of your monthly taxable income. This forbearance is granted in 12-month increments. Maximum eligibility is 36 months.
There are also other types of deferment and forbearance requests. Review the Library of Federal Student Aid Forms for more information.
Expert tip: Document everything you can
- Log in to studentaid.gov, get a new student aid data file, and upload to the VIN Foundation My Student Loans tool
- Grab any PDFs or documentation from your My Activity section in your studentaid.gov dashboard
- If you use an income-driven plan and see an “IDR End of Payment Term” module, grab a copy of your payment history using the new VIN Foundation Download My IDR Progress browser extension.
- If you use an income-driven plan but do not see an “IDR End of Payment Term” module, log in to studentaid.gov and try entering the IDR forgiveness URL into your browser: https://studentaid.gov/aid-summary/idr-loan-forgiveness
- If you do not use an income-driven plan and want to see your forgiveness count, log in to studentaid.gov and enter the payment count API link in your browser
- Download or request copies of statements, histories, and communications from your loan servicer(s)
Consolidation applications must be submitted manually
The electronic consolidation application is also down. However, the manual consolidation application is still available. Hold off on submitting consolidation applications during the pause.
Chances are no matter what repayment plan you apply for during your consolidation, you will likely end up in a standard consolidation plan. If you can get a lower payment that is forgiveness-eligible, then wait to consolidate or apply for an income-driven plan after the pause ends.
Student loan servicer communication is more confusing than usual
Always check the accuracy of what your loan servicers are telling you. Follow discussions on the VIN Foundation Student Debt Message Boards to get help or post questions about what you’ve been told. Any veterinarian has free access to the Student Debt Message Boards via VIN or VIN Foundation.
Whenever you hear something strange from a loan servicer, it’s time to check a new student aid file in the VIN Foundation My Student Loans tool. If it’s been a while (a month or more) since you last checked, it’s time to check again!
Did you miss the recent VIN Foundation Climbing Mt. Debt Webinar?
- Full webinar recording
- Presentation slides that we covered and many that we did not
- A summary Q&A post from the live session
- How to get the NEW VIN Foundation Download My IDR Progress browser extension for Chrome
Lost? Confused? We're here to help!
If you’re confused (it’s hard not to be right now), ask questions. Ignoring your student loans is never a good strategy.
If you need student debt help, reach out to VIN and VIN Foundation. We have free online tools like the VIN Foundation Student Debt Center and special message board areas to help you make sense of your options.
You can ask questions on the student debt message board or submit a Student Debt & Income “Signalment” form and we’ll create a new anonymous post to review your loans with you.
If you have questions on any of the available tools and options, reach out to studentdebt@vinfoundation.org.
We’re here to help!
Your support makes this information possible
Please support the VIN Foundation with a tax-deductible gift.
Dr. Tony Bartels graduated in 2012 from the Colorado State University combined MBA/DVM program and is an employee of the Veterinary Information Network (VIN) and a VIN Foundation Board member. He and his wife have more than $400,000 in veterinary-school debt that they manage using federal income-driven repayment plans. By necessity (and now obsession), his professional activities include researching and speaking on veterinary-student debt, providing guidance to colleagues on loan-repayment strategies and contributing to VIN Foundation initiatives.
41 thoughts on “All IDR applications for student loans are paused – Now what?”
I am extremely thankful for Dr. Bartels’ work. Thank you for your thoughtful information. I can tell you care so much about all of us. Your commitment and dedication does not go unnoticed!
Very kind of you to say 🙂 Thank you for taking the time to post your comment, Kim!
As someone who is currently on SAVE, do you recommend applying for IBR with the pdf form to “get in the processing line” so to speak? Or is this a waste of time given that new forms are likely set to be released?
&
If I were to be denied the switch, are there repercussions? Or would I just continue to be on SAVE?
Thank you SO much for all that you do! You and your team are making a huge difference in the midst of a super confusing and scary time. I couldn’t be more grateful!
Thanks for posting your comment, Grace! And for the kind words 🙂
If you are in the SAVE general forbearance right now, I would not recommend submitting an IBR application to “get in the processing line.” The SAVE forbearance is about the best place your loans can be right now. There are certain exceptions to that for those who are very close to reach forgiveness (either IDR or PSLF), but it’s extremely difficult to get into any other forgiveness-eligible plan right now.
Chances are, if you submit an IDR plan change request right now via PDF, your loan servicer will ignore it or reject it. There shouldn’t be any repercussions if you were denied a switch, but it’s hard to know exactly what will happen since loan servicers seem to be making up rules as they go along. Again, the safest bet right now is to stick with the SAVE forbearance until we know more or until you’re no longer allowed to remain in the SAVE forbearance. Stay tuned for updates and watch your loan servicers closely for any changes to your loans.
Hope that helps! Good luck 🙂
Hello,
Thank you for such helpful information! My loans have been in IBR with the PAYE plan since 2015. I recertified last year in July 2024 with a decrease in income and change in family size because I had my first child. That application was never processed due to the pauses and the application was put in as though I was applying to have the smallest payment and not keeping me in the PAYE plan. After speaking with my Loan servicing company several times they recommended that I put in a new application to continue on in the PAYE plan. This was completed at the beginning of February 2025, I also had my 2024 W-2 that I could add to show the decrease in my income. Currently this application is “in review” and it is my understanding that review of the applications has been paused at this time. My loans are currently in an administrative forbearance for processing of the application. Just wanted to see if there was any advice about my next course of action? Thank you!!
Hi Imani,
Thanks for posting your comment! Congratulations on your first family addition 😊 Your report is a common one, unfortunately. Getting the student loan repayment system up and running again after the pandemic forbearance period has been bumpy to say the least. And with all of the changes and court interventions, it’s nearly impossible to expect any certainty or reliability.
I think you have done everything you can at this time. Keep a close eye on your application. Look for any changes to the application status. Also make sure all your contact information is up to date with studentaid.gov and your loan servicer. You want to be sure to receive any/all communications they may send you.
Forbearance is a fine place to be right now with all of the uncertainty. However, sometimes they will end those with little notice. Document everything you have done so far and look for anything unexpected in your accounts. I would also encourage you to reach out to your Congressional representatives and share your experience. They can sometimes (if they are willing) get more information on your loan status than your loan servicers can. Hope that helps! Good luck 😊
Are paper IDR applications still also being accepted and processed?
Hi Amy,
It’s a great question. Thanks for posting! According to the Dept of ED, no IDR applications are being accepted or processed. Some of the loan servicers have been telling some folks that they still can submit a paper/PDF application. But it’s hard to know if they are actually accepting them or what they are doing with them if you do send one in. As I mentioned in the blog post, I wouldn’t submit an IDR application right now UNLESS 1) you’re currently using income-based repayment (IBR 2009 or IBR 2014) and you’re due to recertify your income during this pause. Because you can see unpaid interest capitalized (added to your principal) if you fail to recertify your IBR plan documentation on time, I would prefer to document that I tried to comply with the recertification requirements then not for IBR, specifically; 2) You’re really close to reaching PSLF and you want to get your loans into IBR to get across the PSLF finish line. We do have an IDR application available in the WikiDebt resource library if you want to try. You might include a letter with your documentation that states your intentions as well (trying to comply with recertification requirements, or trying to continue making PSLF qualifying payments). Make sure you document when you sent it and when it was received by your loan servicer. If you send it via post mail, choose certified mail so you have that documentation of receipt.
Hi,
Thank you so much for providing information that is helpful and accurate during a time that is so uncertain and feels scary! I submitted a SAVE application in July that never finished processing and the was advised to apply for PAYE and submitted that application on 2/12. It is still processing (though has been less than 60 days), and my first payment ever is now due. I was automatically placed on the standard repayment plan and the total monthly payment amount is huge! I’m not sure what I should do or what to expect since my IDR application will probably not be processed any time soon.
Thank you so much for the amazing work you are doing to keep us informed and provide guidance. It’s invaluable, especially during times like these!
Thank you as always for making as much sense as possible out of an endless confusing system! I, like many others, am in IDR forbearance limbo. I’m tracking and recording my status frequently, and have my payment history and expected forgiveness date backed up.
My question is – during administrative forbearance, should I still be making payments? From what I understand, ‘qualifying’ payments would continue to contribute to my forgiveness count, while ‘unqualifying’ payments would not. What I can’t figure out is what makes a payment ‘qualifying’ when my required payment is currently $0. I don’t want my forgiveness to get pushed back farther and farther by not making payments, but if they’re not going to count towards forgiveness then I’d rather spend the money elsewhere, such as paying down my mortgage faster.
Obviously there’s a ton of uncertainty regarding forgiveness and there are no guarantees. Just trying to make the smartest choices that I can for the present, since I feel like we’re going to be stuck in limbo for quite some time still.
Hi Ruth,
Welcome back 🙂 I know we have a discussion going for you over on the Student Debt Message Board area and would recommend that you login and post there to continue this more specifically. But you also raise some great points that I think we can all learn from! Buckle up because your questions touch on the core of some the recent upheaval…
I would not make any payments during your forbearance. By definition, no payments are due during forbearance. Payments made during your SAVE forbearance are not eligible for forgiveness.
If you have a minimum monthly payment of $0/mo while using a different income-driven plan, then those months will count toward forgiveness without paying more than $0/mo. However, unless your repayment plan is currently IBR, you’re probably not receiving forgiveness credit at all right now. You might be receiving PSLF credit, but that is also a bit unclear right now too.
In the recent opinion from the 8th Circuit Federal Court of Appeals, they pretty much killed SAVE and questioned the authority of the Department of Education to provide student loan forgiveness using the income-driven plans created by the Dept of ED, specifically ICR, PAYE, and SAVE (and REPAYE before it). What this Dept of ED chooses to do with that remains to be seen. Putting the pieces together of what has happened so far, when this same court ruled in July 2024 to prevent the Dept of ED from administering certain aspects of SAVE, they also stop providing forgiveness credit (both IDR and PSLF credit) starting from that ruling.
Since this recent ruling, they are no longer allowing people into any IDR nor allowing income recertification for those using an IDR. But they are not offering any type of no-interest forbearance like they did for folks who were using SAVE. That suggests to me that they may not provide forgiveness credit for any of the ED-created IDR plans from Feb 2025 on.
Technically, the court opinion didn’t question the income-based repayment (IBR) plans. Those were created and amended separately and explicitly authorizes forgiveness. The recent court opinion even says so 🙂 However, by removing access to the IDR application, they have effectively blocked access to IBR as well. My hope is that payments made during this period using IBR will count towards forgiveness. But again, I don’t get to make the rules — just trying to interpret them and help you all get the credit you should have under these crazy repayment options 🙂
Coming back to your questions, Ruth — unfortunately, most people are going to see their forgiveness pushed back further by this repayment uncertainty. Maybe we’ll be able to get some retroactive credit for some plans later, but maybe not. The more prepared you are with documentation, the “easier” that process could be.
It’s also not a terrible thing for your forgiveness to be pushed into the future, particularly if you’re lucky enough to be in the SAVE general forbearance right now. Your loans are not costing you anything. Enjoy it while it lasts.
While I probably wouldn’t use this time to pay down my mortgage faster, I would be looking to shore up other areas of my financial wellness or preparing for a budget that involves a higher monthly student loan payment than I’ve had recently.
Clear as mud? 🙂
Hello!
Thank you for all your insight here. I have my loans through PAYE and am up for recert by June 2nd. However, I now have a 2nd child and was hoping to get a reduced payment. Do you have advice on how I can submit a recertification request? My loan servicer is Mohela. I downloaded form 1845-0102
Hi Ashley,
Thanks for posting your comment and congrats on your recent family addition! A few things come to mind based on your comment:
1) Differentiate your recertification due date vs. your IDR Anniversary Date. Your recertification information is due 35 days before your IDR Anniversary Date. I use the federal student aid data file to check my IDR Anniversary Date in the VIN Foundation My Student Loans tool to make sure I have the dates right.
2) If your current PAYE payment is too high since welcoming your 2nd child and your income has decreased, normally, you would be able to submit an IDR application to have your payment lowered without having to wait until your recertification period. Unfortunately, that is hard since there is a pause on all IDR applications. If you can benefit from a lower payment now but can’t due to the IDR application block you can try submitting an IDR application. But they may not do anything with it. Submitting the application could document your intentions of trying to get a lower payment. So if you do try, then document when you sent it, how you sent it, and try to get some kind of confirmation on the other side that it was received. Make sure you’re using the most recent version of the IDR application as well – the form 1845-0102 is the most recent previous form as long as the expiration date listed on it is in the future. We have a copy posted in WikiDebt if you need one. Follow up with them periodically. I imagine they may sit on it or even reject it unless you pester them a bit. Even then, they may not do anything with it, but it’s worth a shot.
3) If you need a lower payment now and they won’t accept your IDR application to lower your payment or we reach your recertification period due date with no resolution to the current IDR application pause, then you may need to request a deferment or forbearance. There are several options for doing so in the studentaid.gov forms library. Deferment and forbearance requests are less than ideal. However, if you need repayment relief and can’t find it with the income-driven plans, then use the deferment/forbearance request forms in the short term.
Hope that helps! Good luck 🙂
Dr Bartels, I have completed double consolidation loan last August 2024 and applied for SAVE. I have been placed in forbearance with Aidvantage since SAVE has been paused. Would I be able to apply for IBR with double consolidation Parent Plus loans? Or would I be able to apply for another income driven plan? I cannot pay for standard plan. Please advise. Thank you.
Hi Connie,
Great question — thanks for posting it! The double consolidation for Parent Plus loans is a really unique situation. It’s great to hear that you were able to get it done. Whether or not you’ll be able to get that consolidation loan into IBR, however, will depend on how that consolidation loan has been labeled in the bowels of the NSLDS.
Technically, consolidated loans that include a Parent PLUS loan are not eligible for income-driven repayment plans other than ICR. However, in some cases, after consolidating those loans twice, the new consolidation may lose track of the Parent PLUS loan included in the consolidation — the so-called “double consolidation loophole.” If so, then you might get lucky repaying that loan using IBR.
In an effort to close the loophole, the previous administration added a couple of Parent PLUS loan indicators to the NSLDS student aid data file. I would suggest that you log in to studentaid.gov, click the “View Details” button on your dashboard, and then click the “Download My Aid Data” button. That will give you an ugly-looking TXT file.
It’s a pain in the … to read that file. However, look for the “Consolidation Loan With Any Parent Plus Indicator:” field for your loans, particularly your remaining consolidated loan. If you see a YES in there, then it’s unlikely you’ll be able to use IBR going forward. If it is blank or says NO, then you might get lucky.
If not, then you would have to use ICR (or whatever it becomes if it is still available going forward) or an extended, graduated, or standard consolidation plan repayment option.
Good luck! 🙂
Thank you Dr. Bartels for responding to my question. I followed your instructions and was able to log in student aid.gov and download the .txt file. You are correct, the document is long and difficult to read. I found references to “Parent Plus First Level Consolidation Indicator:” and “ Consolidation Loan With Any Parent Plus Indicator:” To my [cautious] relief, there is blank after these. I hope to be able to qualify for IBR once it is back in operation. Your advice is extremely valuable in these uncertain times. Thank you so much!
Hello,
Thank you so much for all this incredible information! I am currently on the SAVE plan for PSLF and in forbearance. I have not certified my employment since March 2024 and I just received a letter from studentaid.gov reminding me to re-certify my employment. I do have some months that should count towards PSLF in 2024 prior to being placed in a forbearance, however as you know, these months we are in forbearance don’t count. Will it be harmful in the long run to have “No applicable” under my PSLF monthly count if I re-certify my employment now? Should I just wait to re-certify or is it better to still keep up employment re-certification, especially with this recent potential executive order?
Thank you again for all of your help!
Hi Margaret,
Thanks for your post!
YES — if it’s been a year since you last certified your PSLF employment and you have time to add to your overall PSLF count, then the answer to that question is always yes. Even more so during this period of extreme uncertainty in student loan repayment 🙂 Document everything you can and make sure your information is as up-to-date as possible.
If you can still do/try that electronically, great! To my knowledge, that application is still available since it is different from the IDR applications that have been removed.
If not, we have a PSLF employment certification form on WikiDebt that you can use too.
We really don’t know what the recertification protocol or timeline will be coming out of the SAVE plan forbearance, so I wouldn’t wait for that. Given all of the upheaval at the Dept of ED, it may take a while for you to get your employment certified. The sooner you start that process, the better.
There is no harm in showing “ineligible” or “not applicable” for the months since the court blocked the SAVE plan (July 2024). PSLF qualifying payments do not need to be consecutive. The more PSLF time you can document, the sooner you’ll reach the 120 payments needed to qualify for forgiveness.
Good luck!
Hello,
Thank you for all your help. I am on IBR 2009 and have been since 2012. My last re-cert date was in 2019 due to COVID pause then borrower defense pause (which got denied in January) I am do to recertify this August. I had previously signed up with authorization through IRS for auto-recertification on the studentloan.gov website months ago. Do you think they will re-start that or better to monitor the website to do a manual recertification? I hear tell we might have a new forgiveness plan rolling out soon too.. hopefully that will help many people
Hi Lissa,
Thanks for posting! Great job checking your recertification date and glad to hear that’s not until later this summer for you. Any time you have to let this uncertainty work itself out is a bonus right now.
I wouldn’t count on the auto-recertification to work. I don’t think that was ever fully implemented. I would assume you’ll need to do a manual recertification this summer as long as the IDR applications are available by then. 🤞
Hello,
I’m new here. I was shocked this morning when I discovered that my student loan payment has increased significantly. It’s an amount that I cannot afford to make. I was previously on an IDR plan and did not get to recertify in time (kicking myself!). I’m already marked as past due. I’m not sure what the best move is here?
Hi Renee,
Don’t kick yourself too much. There is a very good chance that your IDR recertification information would not have been processed even if you did submit it on time. People that have submitted their recertifications months ago are still not having them processed and being told it’s due to the recent pause. If you’re unable to afford the updated payment or it would have been lower had you recertified, then request a forbearance. You can also consider a graduated or extended plan, however, they are not forgiveness-eligible. I wouldn’t worry about that too much in the short-term since it’s hard for anyone to log forgiveness credit right now. Good luck!
Hello,
Thank you for all of the support you are providing to so many. I consolidated myu loans almost 10 years ago and have been on IBR since that time. My recertification date is 3/18/25, and like everyone else, I am unable to access the mechanism for completing this. I have heard a suggestion to complete the paper form that is available on the federal aid website, but this form appears to be for the initial application for IBR and consolidation.
I have tired, to no avail, to reach my loan servicer and have been on hold for countless hours. I did choose the option for a return call. When they finally returned my call, I was in a session with a patient and could not answer 🙁 I simply cannot afford the payment if I am returned to standard repayment (it would be about $3000). Are there any other options I am not thinking of (other than forebearance)?
Thank you for your help and your thoughts.
Hi Angel,
Thank you for your post and for the kind words 🙂 I would agree with the suggestion you heard to complete a paper form and get it submitted before your recertification deadline, particularly for IBR. We have a copy of the most recent paper IDR application form that was available before they took it down available on the WikiDebt resource.
If your loan servicer does not recertify your IBR payment (quite likely), then you may need to request a forbearance. A graduated plan payment might be more tolerable depending on your remaining loan types and when you started repayment. However, graduated payments can still be quite high and they are not forgiveness-eligible plans. A forbearance might be your best short-term damage control option if they don’t process your recertification.
Good luck!
Thanks so much for sending the link to this document. Regardless of whether or not they are processing the forms, I plan to submit it as proof that I attempted to recertify. And, a request for forebearance at this time, seems like the route to go, until this is all settled (one way or another.
Hello
Thanks for the support my loan is under Administrative Forbearance they want me to recertify by April 15, 2025, income base repayment plan should I renew my certification before then or should I just wait until they make a decision my payments been cancel and suspended for now. I just don’t want them to start back taking out a lot of money since I didn’t recertify.
Thanks
Hi Rod,
Thanks for posting! If your IBR recertification deadline is 4/15/2025, then submit your renewal documentation before then. I think there is a low probability they will process it, but you want to be able to show that you tried, particularly for IBR.
Unlike the other income-driven options, if your IBR recertification is not processed on time, any unpaid interest you have will be added to your principal (capitalization). The higher your principal, the more interest you accrue during repayment. Technically, you should have access to IBR. So if they do go back and allow you to correct any of this, it’s better to have the proof that you tried renewing than nothing to show them you did what you were supposed to do on time.
If you need an IDR form to submit to your loan servicer, we have a copy of the previously listed form on the VIN Foundation WikiDebt resource page.
Good luck!
Hello,
This is a very helpful post during these times of uncertainty. I am currently in the PAYE plan since 2017. My recertification date is 3/19/25 and my anniversary date is 4/23/25. Currently, with the online application down and the paper application no longer available, I don’t have a way to submit my updated information by my recertification date. However, I found a copy of the IDR Recertification paper form online, and have that downloaded. Based on your post, you would suggest that I don’t submit this online to my servicer (who is EdFinancial), since I’m not in IBR plan? Just wait for updates and then enter deferment/forbearance if/when my anniversary date passes? My monthly payment will go up to $2797/month if it passes, which is not doable for me…. Or, should I submit the paper application and see what my servicer does with it?
Thanks!
Hi Erica,
Thanks for the post! There’s nothing wrong with submitting your PAYE recertification information using the form you found. If you’re going to do so, submit the form before your recertification date and make sure you can document that you did so. Ideally, you’ll want some kind of confirmation that it was received by your loan servicer as well. Chances are, your recertification information will not be processed. But if you can prove you tried and did so on time, maybe that will matter later on down the line.
The reason we emphasize doing so for folks who are in IBR and due to recertify is because unpaid interest is capitalized if your recertification information is not submitted or processed by the deadline. That doesn’t happen with PAYE. So having that documentation that you submitted your recertification on time could help those who have their unpaid interest capitalized get it reversed. Maybe. Hopefully 🙂
Similar to the other posts in this blog, if your loan servicer does not process your recertification, then request a forbearance. You may also consider a graduated or extended plan payment as a short-term bridge through this uncertainty.
Good luck!
I have completed what should be 120 payments/work months as of early last year, but I was waiting for the joint spousal loan consolidation process to be determined. I started my PSLF application in Oct ’22, but was told that I couldn’t continue because of the joint spousal loan situation, that we had to wait for there to be a process to actually separate the loans–and that they would hold my application until then. Two years later, I finally heard the separation process was ready, and when I went to contact Dept of Ed, I was told they had no PSLF application on file at ALL for me. So now I don’t know what to do, or by when I need to do it or if anything at this point is going to matter at all. I am completely lost! We have done the work and put in the time, stressing out these last two years in particular, and to get robbed of it at this point…would be absolutely devastating. Help?
Hi Emily,
Thanks for your post! The joint spousal loan situation has been a total mess when it comes to things like PSLF and IDR. I would review this page on studentaid.gov and follow the instructions closely: https://studentaid.gov/announcements-events/joint-consolidation-loans
You have until the end of June this year to apply for a joint spousal loan separation and receive the previous PSLF credit you may have earned.
Document everything you do and follow-up with your application to make sure everything is submitted on time on your end. You may even visit with your Congressional representatives’ office to help you since yours is a very specialized process.
Good Luck!
Hi, thank you for all of the usedul info on your site.
I was approved for ICR, in December of 2022, but to date I have not been asked to recertify. Do you know why that may be?
Also, any thoughts on whether we will be taxed on the loan forgivness if we were supposed to get our loans forgivien in 2025 but due to the litigation the forgiveness will be postponed (at best) past 2025? I was supposed to be forgiven December 2025 and the law which prevents taxation on forgiven debt expires Jan of 2026.
Hi Noemi,
Thanks for your post! I would encourage you to check your ICR “Anniversary Date.” Income-driven plans normally require you to recertify your income each year. However, in 2022, we were still under pandemic forbearance rules and didn’t start coming out of those until late 2023. After that, we had a series of events that pushed recertification deadlines further into the future. So it could be that yours has been pushed out further than you might expect.
You should be able to see a recertification deadline in your loan servicer account or you can log in to studentaid.gov, grab a federal student aid data file, and upload it to the VIN Foundation My Student Loans tool. You can see your Anniversary Date for your repayment plan there too.
Regarding taxes on loan forgiveness, it depends on when you receive student loan forgiveness and the laws in place for that tax year. We know that loan forgiveness received through 2025 is non-taxable at the federal level. However, beyond 2025, it will depend on what Congress decides to do with that particular tax exemption. Check your IDR forgiveness counts. If you can get your loans forgiven in 2025 – Great! If not, keep your fingers crossed that the tax exemption is extended beyond 2025. You may also consider starting a dedicated fund to plan for the tax if you think your loans would be forgiven beyond 2025. Better to be overprepared than under if you have to pay a tax on student loan forgiveness.
Good luck! 🙂
Thank you so very much!
Thank you so much for providing actual useful information in such a confusing and frankly horrifying time. I have a clarification question about interest being added to your principal if you are placed on a forbearance. For background, I’m currently in PAYE with my recertification date in Sept 2025. During all the initial confusion, I put in an early recertification in Jan 2025 because my loan servicer (Mohela) was unclear about whether I was on auto-recertification or not and there was a lot of confusion even at that time.. anyway, I’m now on a processing forbearance (2nd round now… 3 months in) since I put in an application in the past 90 days. My current forbearance does not accrue interest. I’m confused now since some people are being placed on general forbearance instead of processing forbearance (seems like no rhyme or reason why it’s one or the other?) and it seems like they are accruing interest. I will be finishing residency and starting a real job in September, so potentially I could survive being put into a standard repayment plan. My questions are 1. if I’ve now been put into 2 back to back processing forbearances do you think it is likely that I will continue on 60 day processing forbearances that do not accrue interest, and 2. if I’m instead put on a standard repayment plan and elect instead to go into a general forbearance where interest is accrued, when I do go back into whatever type of repayment program that exists will only the interest that was accrued during the forbearance be added to my principle or will ALL of my years of accumulated interest get added to my principle. Literally losing sleep over this so any insight would be helpful even though I know we don’t have a lot of information to go off of. Also do we have any idea of whether it will be possible to get back into some kind of income based program if you are forced into a standard repayment program? I’m trying to decide if it’s better to accept the extra interest and sit in forbearance, or to suffer through on an extremely limited income on standard repayment.
Hi Hannah,
Thanks for posting! And congrats on finishing your residency soon 🙂
A few things jump out to me from your post —
1) You can’t really put in an “early recertification” as early as you did. I can see from a file that you uploaded in January that your PAYE Anniversary Date was Sept 2025. You’re not allowed to recertify until 90 days before your Anniversary Date unless the information you provide will result in a lower monthly payment that you were paying previously. That would make it a recalculation instead of a recertification.
2) It looks like your loans were put into a forbearance in Dec 2024. I don’t know if you’re accruing interest right now or not. A “processing” forbearance usually does accrue interest and can last for a period of 60 days. If your loan servicer needs more time, then they put you into a “general” forbearance where your interest does not accrue. Since the pause on all IDR applications happened around the time of the end of the 60 day processing period, I’m not sure which type of forbearance your loans ended up in.
3) Let’s check! Please upload a new student aid file into the VIN Foundation My Student Loans tool. As a veterinarian, you can also submit student debt & income signalment form via the VIN Foundation Student Debt Help page and we can dive a bit deeper into your loans and repayment questions.
Sound like a plan?
Thank you for providing actual useful advice!
I am currently on the SAVE plan and in administrative forebearance. I am 2 payments away from reaching 120 qualifying payments for PSLF. I actually could have reached this last year but was in forebearance at that time. I submitted an application on the DOE website to “buy back” 2 months but haven’t heard back yet (it’s been about 4 weeks). If my “buy back” application is granted, will my loans be forgiven even if I’m still in the SAVE plan? The court order made it seem like SAVE plans would not be forgiven even if people reached 120 payments. Should I try to change to an IBR plan now (via the paper application)? If my “buy back” application is denied, at least I could make 2 more payments under IBR and then apply for forgiveness. Thanks for your help!
Thanks for posting your comment and for the kind words, IH!
Have you seen that the IDR applications have been made available again?
https://vinfoundation.org/application-for-income-driven-repayment-plans-reactivated/
It’s incredible how fast things are changing recently.
ICR, IBR, and PAYE income-driven plans remain on the application. I don’t know that I would wait for the “buy back”, especially if you’re trying to buy back payments that were made after the initial court injunction that blocked SAVE (July 2024).
Switching to PAYE or IBR would be a clearer pathway to make those two remaining PSLF payments you have to make. However, please note that while the IDR applications are available, loan servicers are not processing applications just yet.
It’s going to be a while before a lot of this backlog works its way out. So even if you do apply for IBR/PAYE, it could be a while before you see that application processed.
The SAVE forbearance is a blessing and a curse. While you’re unable to get those last couple of PSLF payments in SAVE, at least your loans are not costing you anything. That’s helpful while you wait for your new IDR application to get processed.
Good luck!
Hello,
I am a retired 73 year old school social worker who has been trying (for the last year) to figure out how to get the lowest payment for parent plus loans. They somehow stuck me in graduated extended loans which go up to over 1200 per month in the future. I applied for hardship forbearance for the last few years as I was taking care of an aging parent who had no assets and little income. I was given incorrect directions on consolidating several times over the years so I wrote to my Senator who referred me to Dept. of Ed. Are there any circumstances where I could ask to have this loan wiped out. If not, am I hearing now that I cannot apply online or by mail for the Income Driven Repayment Consolidation (which is still going to be unaffordable)? sigh……Thanks in advance for your reply.
Hi Lois,
Thanks for posting. I’m sorry to hear of your experience with the Parent PLUS loans. I have never understood why they continue to exclude those specific loans from the more beneficial student loan repayment programs. Keep writing your congressional representatives about your Parent PLUS loan experience. That’s going to be the only thing that will potentially change things for those loan types.
A bit of encouraging news, the IDR applications are now available again: https://vinfoundation.org/application-for-income-driven-repayment-plans-reactivated/
With the electronic IDR and consolidation applications back up, you can apply for a Direct Consolidation Loan and select ICR for those Parent PLUS loans. They must be consolidated to be eligible for ICR. It may take some time to get those applications processed, so keep trying to get your loans into a forbearance if possible. There are several different deferment and forbearance types you can apply for: https://studentaid.gov/forms-library/
There are ways to seek a discharge of those loans, but they are not easy and not often granted. I would get them into ICR, then research options for having those loans discharged if you think you meet any of the discharge conditions.
You may also find some success following the Student Borrower Protection Center’s Congressional Casework tool: https://protectborrowers.org/protect-borrowers-congressional-casework-tool/
Good luck!