The U.S. Education Department recently disabled online and paper applications for all income-driven repayment plans following a lawsuit against the new plan, “Saving on a Valuable Education” (SAVE). Borrowers are unable to apply for any IDR plans, including PAYE, ICR, and IBR, due to an injunction issued by a federal appeals court. This suspension affects borrowers needing to recertify their income for IDR plans, recent graduates seeking lower payments, and those wishing to consolidate their student loans. The Education Department is expected to provide guidance on recertification deadlines soon, while borrowers are advised to contact their servicers for assistance. In the meantime, borrowers are urged to consider deferments or forbearances to alleviate unmanageable payments. Additionally, borrowers on the SAVE plan are advised to switch to the standard repayment plan to continue earning credit towards Public Service Loan Forgiveness. For the latest updates and personalized guidance, borrowers are encouraged to contact their servicer, college financial aid department, borrower assistance organizations, or state-based student loan ombudsmen.
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