The U.S. Department of Education’s Office of Federal Student Aid (FSA) has reopened the online income-driven repayment (IDR) plan and loan consolidation applications, providing a new pathway for eligible borrowers following a significant legal challenge. The applications were previously suspended in compliance with an injunction issued by the 8th Circuit Court of Appeals on February 18, 2025, which halted the implementation of the Biden Administration’s Saving on a Valuable Education (SAVE) Plan and certain aspects of other IDR plans.
The court ruling required the Department of Education to make revisions to the online IDR and loan consolidation applications, as the existing forms included provisions related to the SAVE Plan and other programs under legal scrutiny. During the temporary shutdown of the online system, borrowers were able to access paper-based loan consolidation applications.
“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,” stated 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.”
Legal Repayment Options for Borrowers
The updated online application, now available at StudentAid.gov/idr, allows borrowers to apply for Income-Based Repayment (IBR), Pay As You Earn (PAYE), and Income-Contingent Repayment (ICR) Plans. Borrowers can also use the revised application to consolidate their loans. However, loan servicers are still in the process of updating their systems to comply with the recent court decision, and application processing will resume once the updates are complete.
Understanding the Court’s Ruling
The most recent court actions go beyond prior rulings by substantially affecting preexisting U.S. Department of Education rules on loan programs and IDR plans. Specifically, the ruling requires a pause on all provisions outlined in the “Improving Income Driven Repayment for the William D. Ford Federal Direct Loan Program and the Federal Family Education Loan (FFEL) Program” rule issued on July 10, 2023.
Key areas affected by the ruling include:
- The use of the SAVE or Revised Pay As You Earn (REPAYE) Plan formulas to calculate monthly payments.
- The application of forgiveness or interest subsidies under PAYE, ICR, or SAVE Plans.
- The consideration of spousal information when determining monthly payment amounts for IBR, PAYE, ICR, and SAVE.
- The inclusion of specific payments, deferments, or forbearance periods as counting toward forgiveness.
- The method of applying a weighted average of payments for consolidation loans.
- Access to the IBR Plan for defaulted borrowers.
Borrowers are encouraged to visit StudentAid.gov for the latest information and updates as loan servicers complete necessary adjustments.
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