Department of Education Suspends Student Loan Forgiveness Under IBR

DOE Halts Student Loan Forgiveness Under IBR: What Borrowers Need to Know

The US Department of Education has paused forgiveness under the Income Based Repayment IBR plan Learn why this happened which programs are affected how borrowers are impacted and what steps to take next .

What Happened

On July 21 2025 the US Department of Education ED announced the immediate suspension of student loan forgiveness under the Income Based Repayment IBR program This decision affects the forgiveness provision—the cancellation of remaining balances after qualifying repayment years—but does not impact borrowers’ ability to make income driven payments under the IBR plan .

Why This Matters

IBR is one of four major Income Driven Repayment IDR programs IBR PAYE SAVE and ICR It is also the only plan enacted by Congress rather than created via executive action Because of this IBR had been seen as more legally resilient compared to SAVE or PAYE which have faced court injunctions .

That made ED’s decision to pause forgiveness under IBR especially unexpected raising concerns about broader implications for all IDR programs .

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Legal and Regulatory Context

The Biden administration’s SAVE plan faced court challenges in 2024 resulting in a federal injunction blocking its implementation In early 2025 that injunction expanded to halt other executive created IDR plans including PAYE and ICR .

Since IBR was created by Congress it was exempt from those rulings However the ED now says the pause is necessary “until further notice” to ensure full compliance with statutory authority while legal questions are resolved .

What the ED Has Said

According to the Department of Education the pause is a precautionary step They emphasize that .

• Monthly IBR payments will continue uninterrupted .
• No need to reapply or switch plans .
• The forgiveness suspension does not affect plan eligibility .

Officials advise borrowers to continue using IBR as usual while further legal review takes place .

Borrower Impact

• Monthly Payments: Still based on income and family size .
• Forgiveness Timeline: Frozen during the suspension time toward forgiveness does not accrue .
• Financial Consequences: Borrowers nearing the forgiveness threshold may face delays or increased interest costs .

This development is especially concerning for long term borrowers who were counting on debt relief after 20–25 years of payments .

Wider IDR Landscape

Since March 2025 the Department of Education had already halted new IDR plan enrollments due to ongoing litigation Though applications reopened later that month SAVE remains blocked and now IBR forgiveness is paused too .

This adds more uncertainty for borrowers navigating the IDR system during a time of growing legal and policy complexity .

What Borrowers Should Do

1. Keep Paying – Continue monthly payments as scheduled to avoid delinquency or default .
2. Track Your Timeline – Know where you stand in your 20–25 year forgiveness window .
3. Stay Informed – Monitor updates from Federal Student Aid and your servicer .
4. Avoid Switching Plans – Other IDR plans are also under legal review switching could be risky .
5. Document Everything – Maintain copies of payments recertifications and communications for future reference .

What’s Next

The Department of Education has not specified a timeline for reinstating IBR forgiveness A resolution could come through .

• Court rulings
• New federal regulations
• Congressional action

Borrower advocacy groups are urging the ED and lawmakers to restore forgiveness options quickly to provide relief and clarity to millions of borrowers .

Bottom Line

The suspension of forgiveness under IBR represents a major setback for long term student loan borrowers While payments continue the delay in cancellation adds uncertainty and financial pressure for those nearing forgiveness Borrowers must stay informed keep making payments and preserve documentation while awaiting further developments from the Department of Education .