The Trump administration has recently halted online access to income-driven repayment applications for student loans, a move that affects millions of borrowers who rely on these plans for affordable monthly payments. This decision follows a federal court ruling that upheld an injunction on the SAVE plan. Borrowers now face challenges in accessing alternative repayment options, as the remaining available plans typically come with higher monthly payments. Advocacy groups have criticized this action, highlighting its potential impact on working families and those seeking relief through public service loan forgiveness programs.
In late February 2025, the Education Department under the Trump administration removed online applications for income-driven repayment (IDR) plans from the Federal Student Aid website. The removal was a direct response to a federal court decision that upheld a preliminary injunction against the Saving on a Valuable Education (SAVE) Plan. This plan, which aimed to offer borrowers lower monthly payments and faster loan forgiveness, faced legal challenges from several GOP-led states. As a result, borrowers can no longer apply for IDR plans online and must resort to submitting paper applications if they wish to consolidate their loans.
IDR plans, established by Congress in 1993, were designed to provide borrowers with monthly payments based on their income, making it easier for them to manage their debt. These plans also offered loan forgiveness after 20 or 25 years of consistent payments. Many borrowers, especially those enrolled in the Public Service Loan Forgiveness program, relied heavily on IDR plans to reduce their financial burden. With the SAVE plan paused and online applications unavailable, borrowers are left with limited options, such as the standard 10-year repayment plan, which often comes with higher monthly payments.
The controversy surrounding the SAVE plan began when a group of Republican-led states filed a lawsuit last summer to block its implementation. Since then, approximately 8 million borrowers have been in an interest-free forbearance period while the legal battle continues. The latest federal court ruling sent the case back to a district court for a final decision. Meanwhile, borrowers enrolled in the SAVE plan will not be required to make payments until at least December, giving them some temporary relief as student-loan servicers work to update payment plans.
Persis Yu, deputy executive director and managing counsel at the Student Borrower Protection Center, expressed concern over the administration's decision. She stated that shutting down access to all income-based repayment plans was not mandated by the court and accused the Trump administration of making a "cruel choice" that could cause significant hardship for millions of working families. The Education Department has yet to provide guidance on how borrowers should proceed during this period of uncertainty.