Trump Admin Returns Income-Driven Repayment Plan Applications Online
Credit: Sarah L. Voisin / The Washington Post / Getty Images- Borrowers again have online access to loan repayment plans that calculate monthly payments based on family size and income.
- The most generous repayment plan for borrowers, however, is not available.
- President Donald Trump’s administration took down the application for IDR plans in late February.
- The American Federation of Teachers sued the Trump administration in an effort to return the online applications.
Federal student loan borrowers can once again enroll in more affordable repayment plans online.
After a 33-day hiatus, the Department of Education (ED) returned the online application portal Wednesday morning for borrowers interested in enrolling in an income-driven repayment (IDR) plan.
The department had removed the online application for all IDR plans Feb. 21, citing a recent court decision blocking the Saving on a Valuable Education (SAVE) repayment plan as the reason for the removal.
Borrowers can now apply for one of the following IDR plans:
- Income-Based Repayment (IBR)
- Income-Contingent Repayment (ICR)
- Pay As You Earn (PAYE)
ED’s return of the online application came soon after a court hearing to address the February removal.
The American Federation of Teachers (AFT) sued the department March 18 in an effort to compel ED to give borrowers access to IDR plan applications once again. The lawsuit argued that ED was not complying with two laws that enshrine the IBR and ICR plans, specifically.
The suit also said teachers and other public servants were being harmed by this move, as IDR pairs well with the Public Service Loan Forgiveness (PSLF) program.
Notably, the SAVE repayment plan application is not available, nor is the Revised Pay As You Earn (REPAYE) application.
The SAVE plan replaced the older REPAYE plan during former President Joe Biden’s administration. The 8th U.S. Circuit Court of Appeals temporarily blocked implementation of the SAVE plan in mid-2024.
The Biden administration placed borrowers enrolled in SAVE on forbearance, so they currently do not need to make loan payments.
The three available IDR plans calculate monthly payments based on family size and annual income. They also offer complete debt forgiveness after 20-25 years of continual repayment.
Biden’s SAVE plan offered more lenient repayment terms for borrowers, as well as a shortened timeline to forgiveness.