IBR Student Loan Forgiveness Paused: What Borrowers Need to Know Now - Explore Gwinnett's Best in Business, AI & Tech News 2025

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The Department of Education Suspends Forgiveness Under Income-Based Repayment (IBR) Amid System Updates

The Department of Education has temporarily paused student loan forgiveness under the Income-Based Repayment (IBR) plan, citing internal system updates. While multiple income-driven repayment (IDR) plans face legal challenges, IBR currently remains the only option unaffected by court-ordered injunctions.

“Currently, IBR forgiveness is paused while our systems are updated,” stated the Department in a recent announcement. “IBR forgiveness will resume once those updates are completed.”

This update confirms what many borrowers suspected—those who had reached the required forgiveness threshold but hadn’t received a discharge were left in limbo. The pause is not due to a legal block, but a technical delay linked to how the Department implements recent court rulings.

What Is IBR and How Does It Work?

Income-Based Repayment (IBR) is one of several income-driven repayment plans for federal student loans. Monthly payments are typically:

15% of discretionary income (for loans before July 1, 2014)
10% of discretionary income (for new borrowers on or after July 1, 2014)

These payments are recalculated annually based on income and family size. After making consistent payments for either 20 or 25 years, borrowers become eligible for student loan forgiveness on any remaining balance.

Why Is IBR Forgiveness Temporarily Paused?

The pause appears linked to broader legal challenges facing the SAVE Plan, a newer income-driven option introduced by the Biden administration. While IBR itself is not legally challenged, updates to internal systems are required to accurately track qualifying months under all IDR plans.

A Department spokesperson indicated the pause was necessary to ensure accurate month-counting “not affected by the court’s injunction,” a reference to a federal appeals court temporarily blocking SAVE provisions. These updates are essential for accurately processing forgiveness eligibility, even under unaffected plans like IBR.

What Borrowers Can Do Now

Continue Making Payments: IBR remains an active repayment plan. Only the forgiveness processing is delayed.
Track Your Payment History: Keep records of monthly payments, especially qualifying months.
Monitor Official Updates: Watch for Department of Education announcements regarding when IBR forgiveness resumes.
Explore Other IDR Plans: While SAVE is blocked for some, plans like PAYE or REPAYE may still offer alternative routes based on your eligibility.
Stay Informed: Legal developments around SAVE could indirectly affect all IDR plans.

Key Takeaways

IBR forgiveness is paused, not canceled.
The delay is due to technical system updates, not legal disputes.
Borrowers should remain enrolled and ensure their data is up to date.
Monthly payments continue to count toward forgiveness eligibility.

Resources:

Income-Driven Repayment Plans – Federal Student Aid
This resource outlines the Income‑Based Repayment (IBR) plan alongside other income-driven options, explaining eligibility, payment calculations, and loan forgiveness timelines. It’s a trusted, up-to-date source for borrowers seeking details:
👉 StudentAid.gov – Income‑Driven Repayment Plans fsapartners.ed.gov+13studentaid.gov+13fsapartners.ed.gov+13

Additionally, here’s a direct link to apply or recertify for IBR:
👉 StudentAid.gov – Apply for Income‑Driven Repayment