The Department of Education has officially issued clarified guidance on income-driven repayment plan (IDR) recertification following recent count action that paused several aspects of IDR programs. While online applications IBR, PAYE, and ICR plans are expected to reopen on March 26, 2025, processing delays will continue.
Borrowers with upcoming or missed recertification dates are being provided extensions, depending on when the annual recertification date was. For some borrowers, their IDR recertification dates will move one year. For others, loan servicers may have to make manual updates to resolve payment plan issues.
You can find this information on a new banner notification on StudentAid.gov.
Recertification Dates Shift For Many Borrowers
It’s important to remember that the IDR processing pause went into effect on February 21, 2025. As such, this is the date that will determine the outcome for when recertification dates shift, and when borrowers may have missed their timeline.
With that being said, there are three groups of borrowers:
Borrowers With Dates On February 20 Or Earlier
Those who did not submit an application by the February 20 cutoff may have been moved to a standard payment not based on income.
This does not remove them from their income driven repayment plan, but they must reapply to restore income-based payments.
In the interim, if a borrower cannot afford their monthly payment as a result of missing their recertification deadline, they can contact their loan servicer and request a forbearance.
Borrowers With Dates Between February 21 and March 17
Borrowers with recertification due on or before March 17, 2025, who submitted their application by February 20 and had it processed, are unaffected.
If their request was not processed by their loan servicer yet, their recertification date will be extended by one year.
This group may have some manual processing, since it was required that you submitted your documents on time in order to see your date extended by one year.
Borrowers With Recertification Dates After March 18
Borrowers with recertification dates on or after March 18, 2025, will have their deadline automatically extended by one year. However, some borrowers in this group may have seen their payments increase already. Loan servicers are working to restore their previous income-based rates.
It’s important to remember that this is a manual process, especially for already impacted borrowers. The original guidance said that it may take loan servicers several weeks to make the changes required.
For borrowers who have dates later in the year (such as July or August), it’s unlikely those dates will move since the application processing should be fully operational by then. This will all be dependent on when the Department of Education gets full processing resumed.
If processing is not resumed in the next two months, it’s likely that more dates could shift. Borrowers simply need to watch their dates to ensure they don’t miss a deadline.
Application Access Returns, But Processing Remains Paused
After a month of halted access due to a federal court injunction, IDR applications for IBR, PAYE, and ICR plans will again be available. The online loan consolidation application is also back. While borrowers can now submit applications, processing will remain paused while servicers update systems to reflect the court’s directive.
Forgiveness features of SAVE, PAYE, and ICR plans are still suspended under the injunction.
It’s important for borrowers to remember that SAVE may go away. If borrowers do want to apply for an IDR plan, I recommend that they select a specific repayment plan that will be available, such as IBR. If you opt to select SAVE or “Recommended”, your IDR application may be rejected in the future if the Department of Education is unable to process it due to future court rulings.
Limited Options For PSLF Credit
Borrowers seeking PSLF credit during this period may be able to switch to a PSLF-eligible IDR plan, like IBR, or take advantage of the PSLF Buy Back program. The buyback allows borrowers to make up for missed months of qualifying service by submitting a payment equal to what they would have owed under an IDR plan.
The process is only available to borrowers who:
- Still owe a balance
- Have verified qualifying employment
- Will reach 120 months of service with the buyback
According to some recent Reddit threads, it does appear buyback is processing.
What Borrowers Can Do Going Forward
As the Department works to adjust systems and respond to ongoing litigation, borrowers should monitor their servicer accounts and Federal Student Aid communications for updates.
It’s essential that borrowers stay up to date on recertification deadlines, as missing those deadlines can have a big impact on their monthly payment.
For borrowers looking to enroll in an IDR plan, make sure that you understand the applications are currently not being processed. By submitting an application today, you’ll likely end up in a queue waiting on further updates.
Also, it’s important that you select a plan that will continue to exist. While you can opt for the SAVE plan, it may not be an option going forward, which could delay or reject your IDR plan request.
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