New IDR Application Update

Courtesy of Stanley Tate:

Here’s what happened yesterday: the Department of Education said it’s reopening IDR applications starting March 26.

That’s a step forward—but not a full fix.

Here’s what you need to know:

Application forms will be available again—online and on paper—for plans like SAVE, IBR, PAYE, and ICR.

But submitted applications won’t be reviewed yet. Processing is still on hold, and we don’t expect it to resume before the next court hearing on April 15. Recertification deadlines for IBR, PAYE, and ICR have been extended to February 2026.

Quick note on the SBA news: You may have seen headlines about President Trump issuing an executive order to move federal student loans under the Small Business Administration. Right now, this doesn’t change anything for you. It’s unclear whether it’s even legal, and frankly, it’s too administratively complex to be a real shift anytime soon. In our view, this is noise, not a signal—and we’ll let you know if that changes.

So what should you do now?

If you’re eligible and your current plan isn’t working for you, it makes sense to submit an IDR application now. There’s no real downside—just know that:

We don’t know if “getting in line” early means faster processing later. In past pauses, borrowers sometimes had to resubmit their applications once servicing resumed. If your income is expected to drop soon, you might hold off on switching plans or recertifying until that happens—so your payment is based on that lower income. If you’re not sure whether you need to act at all: Recertification extensions mean most borrowers don’t need to do anything right now. But you should check with your servicer to make sure:

You’re still in the right IDR plan, and Your payment isn’t defaulting to the standard plan because your recert date has passed. That might mean sitting on hold—or using your servicer’s online account portal or chat function to double-check.