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Education Department pauses IBR student loan forgiveness

UNITED STATES, JUL 23 – The Department halted IBR forgiveness to update systems reflecting court injunctions, affecting nearly 8 million borrowers with no set date to resume, officials said.

  • On July 21, 2025, the U.S. Department of Education halted student loan forgiveness under the Income-Based Repayment plan in Washington, D.C.
  • The Education Department said with Save halted, forbearances couldn’t be counted toward forgiveness, pausing discharges while systems are updated.
  • About 2 million borrowers are enrolled in IBR, student loan servicers report no guidance on the suspension and no discharges have been processed since mid-January.
  • Under the pause, Ellen Keast noted that payments made after eligibility will be refunded once forgiveness resumes, while Mike Pierce warned it will `drown millions of people in unnecessary interest charges`.
  • After that, the Education Department says RAP should be available by July 1, 2026, as SAVE, PAYE, and ICR close by June 30, 2028.
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Certain student loan repayment plans are going away. Here's where people are impacted

Millions of borrowers in income-driven repayment will need to switch plans by July 1, 2028.

·Milwaukee, United States
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timesng.com broke the news in on Monday, July 21, 2025.
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