📌 Update Available
This post has been updated and republished with the latest developments in the IDR and SAVE plan shutdown.
Read the new version here:
Smart Money 101: The Student Loan Shutdown — Why IDR Plans Vanished and What You Can Still Do

Student Loan Repayment is Stuck – And So Am I

Imagine this: You finally decide to get your financial life together, budget your Starbucks addiction, and enroll in a student loan repayment plan that won’t make your wallet cry. But just as you’re about to hit “Submit” on that sweet, sweet SAVE plan (or any other IDR plan), boom—the government pulls the rug out from under you.

That’s exactly what happened last week. If you, like me, have been banking on an Income-Driven Repayment (IDR) plan to make those monthly student loan payments slightly less painful, well… bad news, my friend. The Department of Education just shut down ALL IDR applications. Yes, all of them. No SAVE plan. No IBR. No PAYE. No hope. (Okay, maybe a little hope, but we’ll get to that.)

So what happened? Why are we suddenly trapped in student loan limbo? And most importantly—what can we do about it?

The SAVE Plan Was Supposed to SAVE Us… But Nope.

The New York Times (Feb. 28, 2025) reported that the SAVE plan—aka, Biden’s big move to make student loan payments more manageable—was legally blocked by a federal court after Republican-led states sued to stop it.

"A federal court ruling expanded an injunction on the SAVE plan, forcing the Department of Education to halt all IDR applications."

Translation? The Education Department panicked and yanked ALL IDR applications, including ones that weren’t even being challenged in court. So instead of just pausing SAVE, they hit the brakes on everything. It’s like canceling brunch because one person said they might be late.

No IDR = No PSLF = No Mercy

If you’re working toward Public Service Loan Forgiveness (PSLF), this is double the disaster.

The Washington Post (March 1, 2025) revealed that the Department of Education didn’t have to go this far:

"The removal of IDR applications was not mandated by the court. The Department of Education made the choice to halt applications for all IDR plans, leaving borrowers without affordable repayment options."

That’s like your gym locking ALL the treadmills just because one broke. And if you’re one of the millions banking on PSLF, which requires an IDR plan to qualify, you might be feeling personally victimized by this decision.

I was this close to switching to SAVE to make my monthly payments lower. But now? I get to stress-scroll through Reddit while praying the government figures this out before my loan forbearance ends.

How Long Is This Mess Going to Last?

Great question. Wish I had a great answer.

CNBC (March 2, 2025) reported that the Department of Education’s internal memo suggests this "pause" could last at least 90 days—if not longer.

"Internal memos suggest the IDR processing freeze could last at least three months, depending on further court rulings."

Three months?! Do they know how much can happen in three months? Taylor Swift could drop another surprise album. We could go through an entire new season of Netflix’s hottest reality show. And, oh yeah—our loan balances could grow even more thanks to interest.

This means if you were hoping to enroll in an IDR plan soon, you’re out of luck for at least a full quarter of the year. And when applications do reopen, expect insane backlogs as millions of borrowers rush to sign up.

So, What Can We Do Right Now?

Look, we can’t exactly storm the Department of Education and demand answers (although, tempting). But here’s what we can do:

If You’re Already in an IDR Plan – DO NOTHING.
- If you already enrolled in IBR, ICR, or PAYE before this mess, stay put. Switching plans isn’t an option right now.
- Check your recertification deadline because income recertifications are also affected.
Call Your Loan Servicer and Beg for Info.
- Some servicers might offer temporary solutions. Ask them about forbearance extensions, deferment options, or temporary lower payments.
- Also, check if your PSLF payments are still counting during this freeze.
Stay Updated (and Keep Your Expectations Low).
- Watch StudentAid.gov and your loan servicer’s updates.
- Follow news sources that report on student loans (not just TikTok).

Final Thoughts: We Deserve Better.

Honestly? This whole situation is ridiculous.

Student loan repayment was already stressful enough. Now, with no affordable repayment options and no clear timeline for when they’ll return, millions of borrowers—including me—are left wondering what’s next.

The government needs to figure this out—fast. Until then, all we can do is wait, strategize, and try not to cry into our ramen noodles.

Feeling the frustration? Let’s talk in the comments. What’s your plan for dealing with this mess?