With only slightly more fanfare than before, Income-Driven Repayment (IDR) applications are back open on studentaid.gov. IDR applications were previously suddenly frozen following a decision from the 8th Circuit Court of Appeals, leaving many borrowers in the lurch. Further, the Department of Education has instructed federal student loan servicers to push back many IDR plan income recertifications to February of 2026.
Over the last couple of months, borrowers with Income-Driven Repayment plans had begun to recertify their incomes for the first time since 2020. Near the beginning of the Covid-19 pandemic, all payments, interest, and income recertifications were frozen by executive order. Even after payments and interest resumed in 2023, further executive actions pushed income recertifications out as the Dept. of Ed. worked out kinks in the student loan repayment system, especially those relating to loan forgiveness. The extension expired in January, 2025, however, leaving borrowers with the prospect of increased payments in the wake of a struggling economy and debilitating inflation.
The latest income recertification delay comes in the midst of ongoing confusion at the Department of Education as the SAVE plan remains blocked by courts and the Department faces a new lawsuit over blocked access to Public Service Loan Forgiveness. With online IDR applications frozen, many borrowers were left wondering what to do about income recertification, as the only guidance from Federal Student Aid was to submit a paper application. As a result, some borrowers who missed their application date saw their monthly payments jump as they were booted from their IDR plan to the standard 10-year plan. Meanwhile, other borrowers saw no changes to their plans or payments with no explanation from neither FSA nor their loan servicer.
Media outlets such as Forbes are reporting that income recertifications are frozen until next year and MOHELA’s website corroborates the delay, stating that “Recertification of IDR plans will not be required until at least February 2026.” It doesn’t appear, however, that borrowers have been given individual notice about what they should do with their specific loans. The notice on studentaid.gov states that borrowers whose recertifications were due before February 20, 2025 and submitted their forms may have their recertifications extended by a year. If their servicer completed processing their form before the freeze, they have a new payment and are stuck with it. If their servicer didn’t finish processing their form, their deadline is extended by a year. If they didn’t submit a form, their servicer should have raised their payment to the standard 10-year plan amount, and they’ll have to submit their income recertification to “potentially lower your payment.” Borrowers whose income recertifications were due after February 20 have a one year extension, unless they were already pushed out to Feb. 1, 2026 or beyond.
If that sounds convoluted to you, you’re not alone. There continues to be tremendous confusion in the student loan world right now, especially with uncertainty about the Department of Education’s future and massive layoffs, including at the office of Federal Student Aid. If you have been impacted by an involuntary change to your repayment plan, give us a call and we can help you explore your options. Other borrowers likely do not need to make any changes at this time, but we are always available to answer questions and work through any concerns you may have as we wrestle with a more turbulent time with student loans than usual.
