Key Updates on IDR & Loan Consolidation

The Department of Education (ED) is still not accepting online applications for IDR plans or loan consolidation.

• ED is accepting paper Loan Consolidation applications via mail.
• IDR payment processing and recertifications are paused for 90 days as a result of ongoing legal challenges.

Why is this Happening:

The 8th Circuit Court has sent the ongoing lawsuit about the SAVE plan back to the U.S. District Court for the Eastern District of Missouri. That court must now decide whether to fully strike down the SAVE plan. Until a ruling is made, the Department of Education has instructed student loan servicers to pause IDR application processing and recertifications for at least 90 days. This pause could end sooner or be extended depending on how the court case progresses.

What Borrowers Should Know:

Although processing for IDR plans is currently paused, IDR plans are still available and may remain the best option for many borrowers.

We strongly recommend reviewing your repayment options now so you are prepared when processing resumes. Making an informed decision today ensures you’re ready when IDR processing restarts. This temporary pause in processing is an opportunity to plan ahead and understand the best financial path forward.

If you cannot afford your current payment, a forbearance may be a good option to help avoid financial hardship and keep your loans in good standing during this period.

We have been made aware that at current time the Department of Education has not given clear instructions to servicers regarding their decision to pause the IDR processing. For borrowers who have recertification deadlines coming up, some select servicers have proactively extended the recertification deadline. However, some servicers have not extended the deadline and are advising borrowers to enroll in non-IDR plans or apply for a forbearance.

Need Help? We've Got You Covered

We understand that these developments can create uncertainty and confusion. That’s why Student Debt Solutions is committed to providing the support and resources you need during this time, including:

• Personalized repayment guidance
• Understand which forbearance request is right for you
• Paper application assistance

If you have any questions or need assistance, please contact our team at support@myresolvent.com. While logged on, you can also use the chat feature to reach us. Our trained staff are experts in student loan repayment options and are available to assist you in understanding how these changes may impact your specific situation.