IDR Applications Are Back Online, but Student Loan Forgiveness Remains in Limbo

The Department of Education has reopened applications for income-driven repayment plans, offering a little relief to student loan borrowers who've been in limbo for the past month. IDR plans are student loan repayment programs that cap monthly payments based on a percentage of the borrower's income. It's been an alternative option for borrowers enrolled in the Saving on a Valuable Education plan, which has been on hold for months facing legal challenges. The IDR application was removed from the federal student loan site shortly after an appeals court ruled against SAVE in February. It has since been made available again with revisions, the Department of Education announced Wednesday. While SAVE borrowers can explore other IDR plans, including income-contingent repayment and pay as you earn plans, the ruling against SAVE means that forgiveness at the end of the repayment period is still in limbo. However, experts still recommend borrowers explore IDR plans to potentially reduce their ... Read full article.