In a major development that’s impacting student loan borrowers across the United States, the Department of Education has quietly paused student loan forgiveness under the Income-Based Repayment (IBR) plan. While other income-driven repayment (IDR) options like SAVE, PAYE, and ICR are facing legal battles and court orders, IBR has remained untouched by any injunction. Yet, despite being legally authorized, forgiveness under IBR has been put on hold — and millions of borrowers are left in limbo.
Let’s break down what’s happening, why this pause is raising eyebrows, and what borrowers can do in the meantime.
📘 Knowing the IBR Plan: How It Operates
One federal income-driven repayment option designed to help borrowers make their student loan payments more manageable is the Income-Based Repayment (IBR) plan. IBR takes into account your family size and income in addition to the amount you owe each month. The majority of borrowers make monthly payments that range between 10% to 15% of their disposable income, which keeps them on track without putting a burden on their finances.
25 years of repayment for loans taken before July 1, 2014.
20 years of repayment for loans taken on or after that date.
After completing the required number of qualifying payments, borrowers are entitled to have their remaining student loan balance forgiven. IBR, unlike some newer repayment plans, is explicitly backed by Congress through legislation, making it legally sound — at least on paper.
🚫 Why Has IBR Forgiveness Been Suspended?
That’s the big question — and the answer isn’t clear-cut.
According to new guidance released by the Department of Education in July 2025, “IBR forgiveness is paused while our systems are updated.” This vague explanation was linked to the department’s broader struggle with the SAVE plan, a newer repayment plan that is currently facing a federal injunction due to lawsuits filed by several Republican-led states.
While SAVE, PAYE, and ICR plans are all tied to executive action and are currently blocked from processing forgiveness, IBR is not. It was enacted by Congress, and the courts have not issued any rulings against it. Still, the department claims the pause is related to internal systems needing updates to “accurately count months not affected by the SAVE court injunction.”
Critics aren’t convinced.
⚖️ Legal Experts and Former Officials Raise Alarms
Some former Department of Education officials and borrower advocacy groups are accusing the Trump administration of intentionally stalling forgiveness under IBR — despite having no legal obligation to do so.
One former Federal Student Aid official revealed in a court filing that the IBR cancellation process has been on pause since July 2024. This suggests a full year of inaction, even for borrowers who have met the required 20 or 25 years of qualifying payments.
“It is my understanding that as of April or early May 2025, borrowers who were eligible for IBR cancellation still weren’t having their loans discharged,” the official stated.
These concerns are compounded by reports of technical difficulties in updating payment counts — essential for determining who qualifies for forgiveness.
💻 Is the SAVE Injunction Really to Blame?
The Department’s justification appears to center around the SAVE plan’s injunction, which has affected many components of student loan repayment. A federal appeals court earlier this year expanded the injunction to include broader regulations that underpin SAVE, many of which intersect with other IDR plans.
These overlapping rules — like how periods of deferment and forbearance count toward forgiveness — may also impact IBR. But here’s the kicker: no court has mandated a pause on IBR discharges. In fact, the law behind IBR explicitly requires the Department to continue processing them.
Advocates for borrower rights say the Department is wrongfully using the SAVE injunction as a reason to delay IBR loan discharges — calling it both misleading and damaging to borrowers.
📉 Millions of Borrowers Stuck in Limbo
While IBR remains legally intact, the reality on the ground tells a different story. Over 1.5 million IDR applications are reportedly backlogged as the Department tries to dig out of the processing freeze caused by SAVE-related issues.
At the same time, the Department is pushing borrowers out of SAVE — urging them to switch to IBR to regain access to forgiveness benefits. This contradictory message has left many confused and frustrated.
And the situation may get more complicated.
🧾 Trump’s “Big, Beautiful Bill” Brings Big Changes
Adding another layer to the chaos is recent legislation signed into law by President Trump, dubbed the “Big, Beautiful Bill.” This law will:
For borrowers currently in IBR, this means they can remain in the program and eventually qualify for forgiveness. But for new borrowers, the road to debt relief just got significantly longer.
🛑 What Can Borrowers Do Right Now?
Borrowers who’ve reached the required threshold for forgiveness under IBR have a few limited — and frustrating — options:
✅ Keep Making Payments Under IBR
You may eventually be refunded for payments made beyond the 240 or 300 months (20 or 25 years) required.
But there’s no timeline on when discharges will resume.
🕓 Consider Forbearance
You can request a forbearance if you must temporarily suspend your loan payments. Just remember that during this period, interest will continue to accrue. Selecting forbearance could result in greater overall costs because there is no specific date for when IBR forgiveness will resume, so carefully consider your options.
📞 Talk to Your Loan Servicer
Reach out to your loan servicer to get updates on your individual situation — especially if you think you’ve already qualified for forgiveness.
Be sure to save all communication and paperwork — they could be important if you need to raise a complaint or take legal steps down the line.
💬 Borrowers and Advocacy Groups Speak Out
The Student Borrower Protection Center issued a harsh statement earlier this month, calling out Secretary of Education Linda McMahon and the Trump administration for:
“choosing to drown millions of people in unnecessary interest charges”
and
“blaming unrelated court cases for their own mismanagement.”
This comes just as the Department announced it will resume charging interest on loans that were paused under the SAVE plan’s forbearance — even though many affected borrowers still haven’t seen any debt relief or loan progress.
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Pausing student loan forgiveness under the IBR plan — even though it’s legally protected — signals a worrying change in how the federal government is handling borrower relief and rights. With delays in processing, shifting legislation, and legal battles all unfolding at once, millions of Americans are now facing uncertainty and frustration as they try to manage their student debt.
In this confusing landscape, borrowers are encouraged to stay updated, stay connected with their loan servicers, and rely on credible sources like the Department of Education and borrower advocacy groups for guidance.
Until clarity returns — and forgiveness resumes — many are left in the dark, paying the price for a system caught between politics and policy.