DOE Halts Online Applications for Income-Driven Repayment Plans

The U.S. Department of Education has temporarily halted online applications for income-driven repayment plans following a court ruling that blocked the implementation of former President Joe Biden's "Saving on a Valuable Education" (SAVE) plan.

The SAVE plan, launched in 2023, aimed to reduce monthly payments and shorten the time it takes to receive student loan forgiveness. However, its implementation has been held up since last July due to lawsuits.

When the Biden administration first enacted the SAVE Plan in 2023, borrowers with only undergraduate loans began repaying loans at 10% of their discretionary income. What is considered discretionary income increased from 150% to 225% of the federal poverty level under Biden's order.

Borrowers currently enrolled in the plan will be placed in forbearance until September, while those in income-driven replacement plans will need to begin recertifying in 2026.