Overview
- The Department of Education temporarily suspended loan forgiveness under the Income-Based Repayment plan in July 2025 while it recalibrates borrower payment records.
- Officials say the pause is not court-mandated for IBR but is needed to align forgiveness counts after injunctions halted the SAVE, PAYE and ICR plans.
- About two million IBR enrollees who have reached the 20- or 25-year payment threshold are awaiting discharges and will receive refunds for any overpayments once processing resumes.
- The agency has provided no timeline for resuming IBR forgiveness and advises borrowers to continue making payments, request forbearance or explore alternative repayment plans.
- New legislation will phase out current income-driven plans by 2028 and introduce a 30-year Repayment Assistance Plan, reshaping future pathways to loan cancellation.