Feeling stuck trying to figure out what’s actually happening with IDR plans? You’re not alone. Between court rulings, blocked programs, and mixed messages from servicers, even well-informed borrowers are asking: Are IDR plans going away? Are they still available? What should I do now?
Here’s where things stand:
The SAVE Plan is blocked. Forgiveness under PAYE, ICR, and SAVE is paused. But IBR — the only plan created by Congress — is still active, still accepting applications, and still counts toward forgiveness (even for past payments under other plans).
This guide breaks down what’s paused, what’s still available, and what your options are — so you can make informed decisions without wading through legal jargon and panic tweets.
Are IDR Plans Still Available? Understanding the Current State of Enrollment
As of March 26, 2025, the U.S. Department of Education reopened online applications for the Income-Based Repayment (IBR), Pay As You Earn (PAYE), and Income-Contingent Repayment (ICR) plans. These plans, previously sunsetted effective July 1, 2024, are now available for enrollment until July 1, 2027.
The SAVE Plan, which had replaced REPAYE, is currently blocked due to a U.S. appeals court ruling and is unlikely to be reinstated under the current administration. Borrowers who were enrolled in the SAVE Plan have been placed into an interest-free forbearance.
Sherpa Thought: Want the latest scoop on the GOP-backed proposals shaking up student loan repayment? Check out our newest blog: What the GOP’s Student Loan Bill Could Mean for You. It breaks down the proposed changes, who they affect, and what it means for your repayment or forgiveness strategy.
Are IDR Plans Going Away? Understanding Forgiveness Uncertainty
While the primary focus of court actions has been the SAVE Plan, there have been significant changes affecting other IDR plans:
- Forgiveness Paused for Certain Plans: Forgiveness under the PAYE, ICR, and SAVE plans is currently paused because these plans were not created by Congress. Only the IBR plan, enacted by Congress, currently offers a path to loan forgiveness.
- Payment Count Adjustments: The Department of Education completed a one-time payment count adjustment as of October 1, 2024. This adjustment reviewed borrower accounts to update payment counts toward forgiveness.
Changes to Monthly Payment Calculations
Recent court rulings have led to changes in how the Department of Education calculates monthly payment amounts for the IBR, ICR, and PAYE plans. These changes may affect borrowers’ payment amounts and eligibility for forgiveness.
End of the Student Loan On-Ramp Period
The government’s “on-ramp” period, which provided protections against negative credit reporting and collections after the student loan payment pause, ended on September 30, 2024. Since then, there has been a surge in student loan delinquencies, with significant ramifications for borrowers’ credit standings.
Will IDR Plans Come Back? What Borrowers Can Do Now
Given the current landscape:
Consider Enrolling in IBR: If you are close to meeting the forgiveness threshold, enrolling in the IBR plan may be advantageous, as it currently offers the only path to loan forgiveness among IDR plans. Payments made under PAYE, SAVE, and ICR can count toward IBR forgiveness if you switch to IBR.
Monitor Your Credit: With the end of the on-ramp period, it’s crucial to stay current on payments to protect your credit score. If you’re struggling, explore options like income-driven repayment plans or loan consolidation.
Stay Informed: Regularly check for updates from the Department of Education and consult with your loan servicer to understand how changes may affect your repayment strategy.
Stay Up to Date: Student loan rules are constantly changing, and temporary programs create deadlines that can’t be missed. To help manage this issue, I’ve created a monthly newsletter to keep borrowers up to date on the latest changes and upcoming deadlines.
Click here to sign up. You’ll receive at most one email per month, and I’ll do my best to make sure you don’t overlook any critical developments.