Income Driven Repayment (IDR) Plans Update
Introduction
According to the Department of Education, due to last week’s 8th Circuit Court Appeals decision, the Saving on a Valuable Education (SAVE) Plan has been blocked preventing new applications. Borrowers who are currently in repayment on the SAVE Plan will continue to be in a general forbearance.
In addition, the time-based (20-25 year) loan forgiveness benefit associated with the following IDR Plans: SAVE, ICR, and PAYE, are currently enjoined.
Also, because of the court issued injunction, online IDR and consolidation applications are temporarily unavailable. However, students can submit a paper application. According to a statement on the Federal Student Aid website "A federal court issued an injunction preventing the U.S. Department of Education from implementing the Saving on a Valuable Education (SAVE) Plan and other income-driven repayment (IDR) plans. As a result, the IDR and online loan consolidation applications are temporarily unavailable. Borrowers can still submit a paper loan consolidation application."
Please visit the following pages for additional information: Federal Student Aid and US Department of Education.