It’s been a confusing year in student loan repayment, to say the least. We continue to see changes even as we approach the end of 2025.
We have two ongoing points of frustration and one suggestion to round out 2025.
- IBR application issues: Partial Financial Hardship update
- SAVE may be ending sooner rather than later.
- Now is the best time to review your student loan repayment options
Removal of the IBR Partial Financial Hardship test
Legislation from this past summer updated the Income-Based Repayment (IBR) plan to remove the partial financial hardship requirement but maintained the monthly payment cap. That means anyone can use IBR, and their payment will never be more than a standard 10-year plan payment, no matter their income or remaining student loan balance.
The IBR update is helpful for those otherwise stuck in the SAVE forbearance and those with lower student debt-to-income ratios who are nearing the forgiveness finish line. Generally speaking, when your student debt-to-income ratio (DIR) is one or less, you would not likely pass the partial financial hardship test, or be able to use IBR.
While the IBR update took effect when the new law was signed on July 4, 2025, the Department of Education’s application system has not yet reflected the change. IBR applicants continue to be tested for partial financial hardships. If they do not pass, then they are denied IBR as a repayment option.
According to the Department of Education, “We are working to update both our systems and our loan servicers’ systems to implement these changes. We anticipate that the system changes will be completed in December 2025. In the meantime, servicers will hold IBR applications that would otherwise be denied. Servicers will process those applications after the system changes are completed. We encourage borrowers who applied for the IBR Plan and were denied due to a lack of partial financial hardship before we instructed servicers to hold these applications to reapply. As more information becomes available, we will update this page.”
SAVE Ending Soon?
Hopefully, we’ll see that system update completed soon because we just learned that the SAVE forbearance could be ending sooner rather than later. Litigation around the SAVE repayment plan reached a potential settlement that will require borrowers in the SAVE forbearance to choose another repayment option. Per the Department of Education, “While the settlement agreement is still pending court approval, we encourage borrowers to … explore other available repayment plans.”
The timeline for ending SAVE or choosing another plan is not yet available. In the meantime, anyone in the SAVE forbearance should get prepared for another repayment plan.
“What repayment plan do I use after SAVE?” has been the most common student loan question of 2025. To see your next best available income-driven repayment (IDR) option, upload your federal student aid data file into the VIN Foundation My Student Loans tool and check your “IDR Profile” in the IDR Eligibility tab.
WikiDebt: What is your IDR Profile?
Your IDR eligibility is determined by your loan types and borrowing history. With ambiguous criteria and changing rules, one of the most difficult aspects of federal student loan repayment is knowing which repayment options are available for your loans. The VIN Foundation My Student Loans tool attempts to clarify the confusion and provide a simplified description of your IDR eligibility via the IDR Profile.
There are six different VIN Foundation IDR Profiles:
- IDR Profile 1: Eligible for ICR, PAYE, SAVE, and IBR 2014, and RAP (once available)
- IDR Profile 2: Eligible for ICR, IBR 2009, PAYE, SAVE, and RAP (once available)
- IDR Profile 3: Eligible for ICR, IBR 2009, SAVE, and RAP (once available)
- IDR Profile 4: Eligible for IBR 2009 only
- IDR Profile 5: Eligible for ICR only
- IDR Profile 6: Eligible for RAP only
See the WikiDebt IDR Profiles page for more detail.
The most common IDR Profiles we see for veterinarians are 1, 2, or 3. Here are short-term repayment guidelines for your IDR Profile:
- IDR Profile 1 or 2: Choose PAYE
- IDR Profile 3: Remain in SAVE Forbearance, or choose IBR or ICR, whichever payment is lowest.
Now is the best time to review your student loan repayment options
Whether you are applying for your first or a new student loan repayment plan, the end of the calendar year is one of the best times to evaluate your options.
Choosing a new income-driven repayment plan requires you to submit income documentation.
If your income has decreased since the last time you provided income information, you should apply to have your payment reduced in your current income-driven plan.
The period immediately before filing your next tax return gives you the most choices to minimize your monthly student loan payment.
You can use either the adjusted gross income (AGI) from your most recently filed tax return (i.e., 2024), your 2025 end-of-year income information (i.e., W-2), your first paystub in 2026, or potentially wait until after you file your 2025 tax return. Use the income information that will result in the lowest minimum monthly payment for your circumstances.
For example, let’s say your income in 2025 decreased compared to your income in 2024. You can use a recent paystub or your 2025 W-2 as income documentation for your income-driven repayment plan application.
On the flip side, if your income increased in 2025, then you may want to apply using your previous tax return, before you file your 2025 tax return.
What if you got married in 2025, and this will be the first time you need to decide whether to file taxes jointly or separately? Consider getting your 2025 tax return filed before you apply for your income-driven plan to make it easier to reflect your current marital and tax filing status.
Preparing for more changes in 2026
The new Repayment Assistance Plan (RAP) is coming by July 1, 2026. You can explore how RAP looks for you in the VIN Foundation Student Loan Repayment Simulator. With the SAVE forbearance potentially ending before RAP is available, you may need a bridge to get you to RAP. Choose PAYE if you are eligible, ICR if it is the lowest monthly payment for you, or IBR if neither PAYE nor ICR is the best option for you. If you are in IBR or plan to use IBR before switching to RAP, please note that your unpaid interest will capitalize (get added to your principal) when you leave IBR. Generally speaking, avoid unpaid interest capitalization when possible.
Need student loan help?
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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.