IDR Processing Fix Offers Relief For PSLF Borrowers

After months of delays, federal student loan borrowers can now submit applications for most Income-Driven Repayment (IDR) plans and expect processing in as little as three to seven days. Reports from MOHELA and feedback from borrowers indicate the system update has worked, with forms for IBR, PAYE, and ICR now moving quickly.

Previously, IDR applications were paused due to the court injunction requiring system updates to process eligible plans while sidelining ineligible plans. IDR Processing Fix Offers Relief

The Department of Education responded by placing many borrowers into administrative forbearance or delaying income recertification deadlines until 2026.

Now, the site once again accepts online applications and is processing them relatively quickly. We are processing applications filed after April 27, 2025, with complete income data in less than a week. Borrowers who applied before that date without income info or for an ineligible plan are being encouraged to reapply so their application can be processed without delay. IDR Processing Fix Offers Relief

Who Should Submit A New IDR Application?

The reactivated application process is most useful for a few groups:

• Borrowers close to Public Service Loan Forgiveness (PSLF): Switching into an eligible IDR plan can help ensure qualifying months without needing to buy back prior periods.
• Those on other IDR plans: Borrowers currently enrolled in another IDR plan but wishing to switch into a plan that better aligns with their income or family size should consider applying now.
• Borrowers looking to recertify income: If household income has dropped since your last recertification, submitting a new application may reduce your monthly payments sooner.

Each of these situations can benefit from quick action. The new system allows for timely processing and gives borrowers more certainty as they plan their budgets for the year ahead. IDR Processing Fix Offers Relief

Who Should Still Be Waiting?

Borrowers who selected the SAVE plan or chose “lowest monthly payment” on their original application are still on hold. These applications remain paused due to ongoing litigation over the SAVE plan and pending guidance from the Department of Education. Borrowers in this group remain in administrative forbearance and are not being required to make payments.

This means interest is not accruing, and time in forbearance would require PSLF buyback to qualify for PSLF. That said, some borrowers may prefer to exit forbearance and request another plan, such as IBR or PAYE, to resume payments and make progress toward their repayment goals. IDR Processing Fix Offers Relief

To evaluate options, borrowers can use the Loan Simulator at StudentAid.gov to compare plans and monthly payments. Once borrowers select and submit a new plan with income documentation, the processing becomes faster and more reliable. IDR Processing Fix Offers Relief

Who Should Still Be Waiting?

Borrowers who selected the SAVE plan or chose “lowest monthly payment” on their original application are still on hold. These applications remain paused due to ongoing litigation over the SAVE plan and pending guidance from the Department of Education. Borrowers in this group remain in administrative forbearance and are not being required to make payments.

This means interest is not accruing, and time in forbearance would require PSLF buyback to qualify for PSLF. That said, some borrowers may prefer to exit forbearance and request another plan, such as IBR or PAYE, to resume payments and make progress toward their repayment goals.

To evaluate options, borrowers can use the Loan Simulator at StudentAid.gov to compare plans and monthly payments. Once a new plan is selected and submitted with income documentation, processing is now faster and more reliable.