Which Student Loan Repayment Plans Has Trump Suspended?

The Trump administration has suddenly stopped accepting online applications for four of its federal student loan income-driven repayment (IDR) and loan consolidation plans.

Why It Matters

The removal of the IDR applications affects millions of borrowers who rely on repayment plans to manage their student debt.

The withdrawal of applications for the income-driven repayment plan comes after a legal dispute over former President Joe Biden's SAVE plan, which lowered monthly payments for borrowers and accelerated loan forgiveness.

Last summer, a coalition of GOP-led states sued to halt the plan, resulting in 8 million enrolled borrowers being placed in interest-free forbearance while the case progressed. A federal court recently upheld the pause, returning the case to a district court for a final decision.

What To Know

A spokesperson for the Education Department has confirmed to Newsweek that the temporary stop to new online applications is due to the court ruling.

"A federal Circuit Court of Appeals issued an injunction preventing the U.S. Department of Education from implementing the SAVE Plan and parts of other income-driven repayment (IDR) plans. The Department is reviewing repayment applications to conform with the 8th Circuit's ruling," the spokesperson said in an emailed statement. "As a result, the IDR and online loan consolidation applications are currently unavailable. In the meantime, borrowers can still submit a paper loan consolidation application."

Which Programs Have Been Suspended?

Trump has suspended online applications of the following four programs:

• Income-Based Repayment (IBR)—sets monthly payments at 10 to 15 percent of a borrower's discretionary income, making it a suitable option for those with a high debt-to-income ratio. Borrowers can qualify for loan forgiveness after making 20 to 25 years of payments.
• Income-Contingent Repayment (ICR)—determines payments as either 20 percent of discretionary income or a fixed amount over 12 years, whichever is lower. Loan forgiveness is available after 25 years, and this is the only income-driven plan accessible to Parent PLUS Loan borrowers through consolidation.
• Pay As You Earn (PAYE)—caps payments at 10 percent of discretionary income and is available only to those who took out loans after October 1, 2007. Borrowers can receive loan forgiveness after 20 years of qualifying payments.
• Revised Pay As You Earn (REPAYE)—requires payments of 10 percent of discretionary income, regardless of income level. Loan forgiveness is granted after 20 years for undergraduate loans and 25 years for graduate loans.

What People Are Saying

James Bergeron, the Education Department's acting under secretary, previously told Newsweek: "The Department of Education is currently working to ensure borrowers understand existing repayment alternatives allowed under the law."

Persis Yu, Student Borrower Protection Center deputy executive director and managing counsel, said in a statement: "Shutting down access to all income-based repayment plans is not what the 8th Circuit ordered—this was a choice by the Trump Administration and a cruel one that will inflict massive pain on millions of working families."

Mark Kantrowitz, a financial-aid expert, told CNBC: "I expect it will be temporary, lasting a few months while they make changes."

What Happens Next

Guidance from the Education Department on January 15 indicated that borrowers enrolled in the SAVE plan will not be required to make payments until at least December 2025 while student-loan servicers adjust payment plans for affected borrowers.

Update 3/4/25, 9:49 a.m. ET: This article was updated with comment from an Education Department spokesperson.