The U.S. Department of Education’s (ED) Office of Federal Student Aid (FSA) today reopened the online income-driven repayment (IDR) plan and loan consolidation applications for borrowers.
The application was paused for several weeks to comply with the 8th Circuit Court of Appeals injunction issued last month. The court directed ED to cease implementation of the Biden Administration’s Saving on a Valuable Education (SAVE) Plan – which the Trump Administration referred to as “illegal” in an ED press release – as well as parts of other IDR plans.
According to the press release, because the online application incorporated provisions subject to the injunction, it was necessary to revise the form, which made it unavailable to borrowers in the interim. Paper loan consolidation applications were available to borrowers during that time.
“A federal appeals court struck down another one of the Biden Administration’s illegal efforts to transfer student loan debt to taxpayers. In response, the Trump Administration substantially revised the income-driven repayment plan application to conform with the ruling,” Acting Under Secretary James Bergeron. “Our team was able to relaunch this application within weeks, ensuring borrowers have access and the ability to access all legal repayment plans.”
Borrowers can now apply for the Income-Based Repayment (IBR), Pay As You Earn (PAYE), and Income-Contingent Repayment (ICR) Plans using the updated IDR application. Borrowers may also apply to consolidate their loans through a revised application form.
