The current status of student loan forgiveness on income-based repayment schemes?
Student Loan Forgiveness for IBR Borrowers Temporarily Paused
The U.S. Department of Education has announced that the forgiveness of loans for borrowers enrolled in the Income-Based Repayment (IBR) plan is currently paused, but will resume once system updates are completed. This pause does not affect IBR's forgiveness eligibility or the terms of the plan[1].
Unlike other income-driven repayment plans such as SAVE, PAYE, and ICR, which are currently affected by legal challenges, IBR is unique because it was created by Congress and operates under a different statute[1][4]. As a result, the recent federal court injunction has no impact on IBR forgiveness.
IBR offers forgiveness after 20 or 25 years of repayment, depending on the loan type[1][4]. Once the system updates are completed, IBR forgiveness will continue to provide loan forgiveness as it currently does. The exact restart date for forgiveness is not yet announced, but borrowers are encouraged to monitor updates from the Department of Education for precise timing[1][2][3][4].
Meanwhile, the One Big Beautiful Bill Act, signed in July 2025, maintains and slightly expands IBR. This bill removes the "partial financial hardship" eligibility requirement, making more borrowers eligible for IBR, and extends usage for some Parent PLUS loans with conditions[2][4]. By July 1, 2028, other income-driven repayment plans like SAVE, PAYE, and ICR will be eliminated, leaving IBR and the Repayment Assistance Plan (RAP) as the main options[3].
The Repayment Assistance Plan (RAP), which will eventually replace the ICR, PAYE, and SAVE plans, requires 30 years of repayment before forgiveness is granted, unlike IBR[3]. Borrowers who have reached the threshold for forgiveness but are not seeing their loans discharged can continue to make payments with the expectation of a refund for excess payments[1].
In the meantime, borrowers can request forbearance from their loan servicer, in which case interest would continue to accrue on any remaining balance[3]. Borrowers should carefully consider their repayment options and seek advice from the Department of Education or a trusted financial advisor.
[1] U.S. Department of Education. (n.d.). Income-Based Repayment (IBR). Retrieved from https://studentaid.gov/manage-loans/repayment/ibr
[2] White House. (2025, July). One Big Beautiful Bill Act. Retrieved from https://www.whitehouse.gov/one-big-beautiful-bill-act/
[3] U.S. Department of Education. (n.d.). Repayment Assistance Plan (RAP). Retrieved from https://studentaid.gov/manage-loans/repayment/rap
[4] National Association of Student Financial Aid Administrators. (n.d.). Income-Based Repayment (IBR). Retrieved from https://www.nasfaa.org/policy-and-advocacy/federal-policy/ibr/
Personally reviewing the options available for education and self-development, such as learning about the Repayment Assistance Plan (RAP) and Income-Based Repayment (IBR), can help individuals make informed decisions about their personal-finance management. During the temporary pause in IBR loan forgiveness, it is crucial for borrowers to actively monitor updates from the Department of Education regarding the resumption of the forgiveness program.
