IDR applications are open again. Here’s what to do if you can’t afford payments.

By Corey Buhay | Published on October 21, 2025

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It’s understandable to feel a little confused about the current state of income-driven payment (IDR) plans. In 2024, the Saving on a Valuable Education (SAVE) Plan—the newest and most generous of the four available IDR plans—was put on pause thanks to a court injunction. For a while, federal borrowers could still apply, but their applications ended up in administrative limbo, and the Department of Education put all applicants’ loans in forbearance. Then, in February, the Trump Administration removed the IDR application from the StudentAid.Gov website. By March it had been reinstated, but student borrowers were left with whiplash—and more than a little confusion about how to proceed from here.

If the student loan rollercoaster has left you feeling uncertain about your options, don’t worry. There are still plenty of ways to seek relief for high payments, get organized, and set yourself up for success. Here’s what you need to know—and what to do if you can’t afford student loan payments while the SAVE Plan is paused.

What happens if I already applied for the SAVE Plan?

The SAVE Plan is currently paused due to legal challenges, and new enrollments are not being accepted. If you’ve already applied for the SAVE Plan, your loans have been placed either in a processing forbearance or a general forbearance. Interest accrues during a processing forbearance but not during general forbearance. If your loans are in processing forbearance for more than 60 days, they’ll automatically be moved to general forbearance—which can give you some breathing room until the courts reach a decision.

Why are delays happening—and how long will they last?

The Department of Education is currently facing a months-long backlog in IDR Plan applications. That’s left a number of borrowers in a financial bind. The backlog is due to a mix of staffing shortages and servicing limitations within the Department of Education, as well as the legal challenges concerning the SAVE Plan.

As of May 2025, the Department of Education had only processed a few hundred thousand IDR applications and more than 1.6 million unprocessed applications still remained. At that rate, it could take up to two years to address all of them. However, the Department of Education has stated that it’s hoping to step up its processing speed and get through all open applications within the next few months.

Which repayment plans are available now?

While the SAVE Plan is not accepting new applications, other income-driven repayment plans are. Borrowers can once again apply for the following plans. Here’s what to know about your IDR application in 2025.

• Pay As You Earn (PAYE): Under this plan, your payments are typically 10% of your discretionary income. The more you earn, the more you pay. However, your bill will never be higher than what they would be under the 10-year Standard Repayment Plan.

• Income-Based Repayment (IBR): This is for borrowers whose student debt represents a significant percentage of their annual earnings. Your monthly payments will be capped at 10% to 15% of your discretionary income. However, that amount will never surpass what it would be under the 10-year Standard Repayment Plan.

• Income-Contingent Repayment (ICR): This is typically the most expensive plan, but it’s available to a wider selection of applicants. Your monthly payment will either be equivalent to what you’d pay on a 12-year fixed plan, or 20% of your discretionary income—whichever is less.

Be aware that the Income-Based Repayment (IBR), Pay As You Earn (PAYE), and Income-Contingent Repayment (ICR) plans are being phased out under the "One Big Beautiful Bill Act," signed into law on July 4, 2025. These plans will be replaced by the new Repayment Assistance Plan (RAP), effective July 1, 2026. After this date, borrowers will no longer be able to enroll in IBR, PAYE, or ICR.

What to do if you can’t afford your payments right now

Here’s how to get student loan help while waiting for courts to decide on the SAVE Plan.

Apply for another available IDR plan

If you can’t afford your current payments and haven’t yet applied for the SAVE Plan, consider applying for the next lowest-payment IDR Plan available to you. True to their name, these plans are “income-driven,” which means your bill will be calculated based on your income and family size. Many borrowers will see an immediate reduction in their monthly payment amount. It’s possible that your application will get caught up in the current backlog, but if it does, you can reach out to your loan servicer to request a processing forbearance. During this type of forbearance, interest will accrue but payments won’t be due until your application is approved.

Contact your loan servicer

If you think you’re going to miss a payment, reach out to your loan servicer as soon as possible. They may be able to work out a deal to help you get back on your feet. If you’ve suffered undue financial hardship—like job loss or unexpected medical bills—you may also be able to request temporary forbearance or deferment, which will put your payments on pause for up to a year.

Recertify your income

If you haven’t yet submitted your form to recertify your income this year, do that as soon as possible. This will make sure your payments get properly calibrated to your current income, and will leave you a step ahead should your application get accepted in the near term.

Keep making minimum payments

If your loans aren’t in forbearance and you still have monthly bills rolling in, continue making your minimum payment on time each month if at all possible. That will protect your credit from negative impacts, keep your loans out of default, and ensure you remain eligible for future forgiveness.

Keep thorough financial records

With so much uncertainty within the Department of Education, it’s smart to download receipts of all your past payments and save copies of any communications you have with your loan servicer. Save these to your computer or to a hard drive and organize them so they’re easy to search and reference in the future.

When refinancing might make sense—and when it absolutely doesn’t

Refinancing can help you secure a lower interest rate on your student loans, reduce your monthly payment, and even get out of debt faster. However, it won’t make sense for many federal borrowers. When you refinance federal student loans, you exchange your federal debt for a new, private loan with a private lender. Once your debt becomes private, it’s no longer eligible for federal protections like forbearance, deferment, and forgiveness. So if you’re hoping to take advantage of federal income-driven repayment plans or student loan forgiveness, it’s probably best to keep your loans where they are. Refinancing is also not available if your loans are in default, in a processing forbearance, or otherwise under review.

However, if your loans are free of the backlog, you’re in a strong financial situation, and you aren’t eligible for federal forgiveness, refinancing may be worth considering. It can help you get on a new payment plan and start paying off your debt ASAP. That can help you feel like you’re back behind the steering wheel and making measurable progress toward debt freedom. If you meet your lender’s eligibility requirements, you may also be able to secure a lower interest rate—and save money in interest over the life of the loan.

Get clarity on your loans and take back control

The federal student loan landscape might feel a little daunting right now, but you still have plenty of options. Take stock of your loans, get organized, work on building up your credit, and research realistic alternatives—like student loan deferment, income-driven repayment plans, or student loan refinancing.