In a surprising move, the Trump administration’s Department of Education has paused Student Loan Forgiveness IBR (Income-Based Repayment) leaving many borrowers confused and frustrated. The Department of Education quietly updated its guidance in July 2025, confirming the pause without offering a clear timeline for when forgiveness will resume.
The IBR plan was the only income-driven repayment option still running without any legal block—until now.
What Is the IBR Plan?
The Income-Based Repayment (IBR) plan is a federal program that allows borrowers to pay back their student loans based on their income and family size. Monthly payments are usually 15% of a borrower’s discretionary income or 10% if you’re a new borrower after July 1, 2014.
After making payments for 20 or 25 years, depending on when the loan was taken, any remaining balance is supposed to be forgiven.
Why Student Loan Forgiveness IBR Suspended?
The Department of Education says the pause is due to system updates — specifically to adjust how repayment months are counted after recent court rulings on other plans like SAVE (Saving on a Valuable Education), which is currently blocked.
“IBR forgiveness is paused while our systems are updated,” the department wrote. “It will resume once updates are completed.”
But many experts and borrowers are concerned, especially since no court has ordered forgiveness under IBR to stop. This makes the pause appear more like an administrative decision than a legal necessity.
Who Is Most Affected?
The people most impacted are borrowers who have already made 20 or 25 years of payments and were expecting their loans to be discharged soon, borrowers currently enrolled in IBR who are working toward forgiveness and borrowers from blocked plans like SAVE (Saving on a Valuable Education) or PAYE who switched to Student Loan Forgiveness IBR to continue making progress.
Now, all of them are stuck.
Can You Still Make Payments?
Yes, but here’s the problem
While you can still make monthly payments under the IBR plan, you won’t earn forgiveness credit during this paused period.
That means your path to loan forgiveness is essentially frozen— possibly for months or longer.
Are There Any Alternatives?
At the moment, there are limited options:
Forbearance: You can apply to temporarily pause payments, but interest will continue to build up.
Keep paying: Some borrowers are continuing payments and hoping for refunds later once forgiveness resumes.
Wait it out: There’s no current timeline for resumption, but the Department says updates are ongoing.
New Repayment Plan Coming Soon?
In the near future, a new Repayment Assistance Plan (RAP) will replace several older IDR options. Under RAP, forgiveness won’t happen until after 30 years of payments — a longer timeline than IBR.
However, IBR is expected to remain available for existing borrowers.
What Borrowers Should Do Right Now
If you’re in Student Loan Forgiveness IBR plan or planning to enroll:
Stay informed — Keep checking the Department of Education website or your loan servicer’s portal.
Document everything — Keep records of your payments and communication for future support or forgiveness claims.
Talk to your servicer — Ask for updates or options tailored to your case.
Avoid panic — While this pause is frustrating, it’s not a permanent end. Forgiveness may resume once updates are in place.
This pause has left many in limbo, especially those who were on the verge of loan forgiveness after decades of payments. While the Department of Education says the pause is temporary, the lack of a clear explanation or timeline makes it difficult for borrowers to plan their financial future.
If you’re one of the millions affected, stay patient but alert — and don’t hesitate to seek professional guidance if you need help navigating your next steps.
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