The Department of Education has paused student-loan forgiveness under income-based repayment plans due to ongoing litigation surrounding the SAVE plan. Currently, just under 2 million borrowers are enrolled in income-based repayment (IBR). This pause is to ensure compliance with a court order and accurate counting of months affected by the injunction. Meanwhile, forgiveness under other repayment plans is also blocked. Refunds for overpayments will be issued when IBR discharges resume after system updates.
The Education Department stated that IBR forgiveness is paused due to ongoing litigation with the SAVE plan, impacting how forgiveness is processed for borrowers.
Currently, IBR forgiveness is paused while our systems are updated to accurately count months not affected by the court's injunction, and will resume thereafter.
#student-loan-forgiveness #income-based-repayment #education-department #trump-administration #save-plan
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