On March 26, 2025, a person was spotted walking across the campus of Muhlenberg College in Allentown, Pennsylvania, as captured by Hannah Beier for Reuters.
Recently, the U.S. Department of Education has decided to reopen its online application system for income-driven repayment (IDR) plans. These plans help millions of federal student loan borrowers manage their debt more effectively.
Currently, the IDR options being offered include Income-Based Repayment, Pay As You Earn, and Income-Contingent Repayment, as indicated by the Trump administration. Earlier this year, the administration faced backlash when they temporarily removed access to these online applications. Consumer advocates and borrowers were particularly vocal in their disapproval.
Initially, the Education Department cited a court order from February as the reason behind this move. This came after an appeals court issued a decision that halted the implementation of a new IDR plan put forth by the Biden administration, known as SAVE, or Saving on a Valuable Education.
In response to this situation, the American Federation of Teachers took legal action against the Trump administration. They claimed that the administration misinterpreted the 8th U.S. Circuit Court of Appeals’ ruling, using it as a justification to halt applications not just for SAVE, but for other IDR plans as well.
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Congress originally introduced income-driven repayment plans in the 1990s to provide relief to student loan borrowers by making their payments more manageable. These plans cap monthly payments based on discretionary income and offer loan forgiveness for any remaining debt after a set period, usually 20 or 25 years.
The appeal of these plans isn’t limited to reduced payments; borrowers also hope to benefit from various loan forgiveness options these plans offer.
By September 2024, more than 12 million people were signed up for IDR plans, highlighting their importance in managing student debt, as noted by higher education expert Mark Kantrowitz.
