The Income-Based Repayment (IBR) plan's loan forgiveness is currently paused as the Department of Education updates its systems, with no clear timeline for resuming. The Pay As You Earn (PAYE) and Income-Contingent Repayment (ICR) plans are also paused. The SAVE plan, backed by Biden, is ending due to a court ruling against its creation, affecting approximately eight million borrowers who will begin accruing interest. Those in SAVE, PAYE, or ICR can count payments towards IBR forgiveness.
Currently, IBR forgiveness is paused while our systems are updated to accurately count months not affected by the court's injunction. IBR forgiveness will resume once those updates are completed.
Trump's so-called big, beautiful bill states that it must cease by July 2028, but it was already on its last legs. An appeals court sided with a Republican-backed lawsuit that argued the Biden administration didn't have the authority to create it in the first place.
Individuals enrolled in the SAVE plan have been in an interest-free forbearance for over a year. Now, the roughly eight million borrowers on the SAVE plan will see interest accrue starting August 1.
Borrowers in SAVE, PAYE, or ICR plans who enroll in an IBR plan can count their payments toward forgiveness.
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