Good news for student loan borrowers! The U.S. Department of Education’s Office of Federal Student Aid (FSA) has reopened the online income-driven repayment (IDR) plan and loan consolidation applications. This comes after a temporary pause necessitated by a recent court injunction.
Why the Pause on IDR Applications?
Last month, a federal appeals court issued an injunction preventing the implementation of certain changes to income-driven repayment plans. Since the online application contained provisions affected by this ruling, it was temporarily taken offline for revision.
A Department of Education spokesperson stated, “In response to the court ruling, the income-driven repayment plan application was substantially revised to conform with the decision. Our team was able to relaunch this application within weeks, ensuring borrowers have access and the ability to access all legal repayment plans.”
What This Means for Borrowers:
Borrowers can now apply online for the Income-Based Repayment (IBR), Pay As You Earn (PAYE), and Income-Contingent Repayment (ICR) Plans. Additionally, the online loan consolidation application is also available again.
Important Note: While the online application is now live, borrowers should be aware that loan servicers are still in the process of updating their systems. Processing of applications will begin soon.
This reopening provides borrowers with access to crucial repayment options. Stay tuned for further updates as loan servicers resume processing applications.
Log in to your IonTuition account today to manage your repayment.