Restoration of Online Income-Driven Repayment Application for Student Loan Forgiveness
Critical Application To Pursue Student Loan Forgiveness Is Back Up — Key Details 🔗
Online access to the Income-Driven Repayment (IDR) application has been restored by the Education Department, allowing borrowers to apply for student loan forgiveness. The restoration follows a two-month period during which borrowers were unable to access the application due to a court ruling affecting the SAVE plan. While borrowers can now apply to switch to the Income-Based Repayment (IBR) plan to resume progress toward forgiveness, this option may come with higher monthly payments and potential interest capitalization. Additionally, the department warns of possible processing delays for applications, although borrowers may benefit from a short processing forbearance that counts toward their forgiveness.
- The IDR application is now accessible online after a two-month pause.
- Borrowers can apply for the IBR plan, but it may result in higher payments compared to the SAVE plan.
- Processing delays are expected for IDR applications, but a short-term forbearance may count toward forgiveness.
What options do borrowers have after the restoration of the IDR application?
Borrowers can apply to switch to the Income-Based Repayment (IBR) plan to resume progress toward student loan forgiveness under IDR and PSLF.
Why is the SAVE plan currently inaccessible?
The SAVE plan is blocked due to a nationwide injunction, preventing new enrollments while the Education Department updates its systems to comply with the court order.
What should borrowers expect during the processing of their IDR applications?
Borrowers should anticipate lengthy processing delays, but they may be placed in a processing forbearance for up to 60 days, which could count toward their student loan forgiveness.