📌 IBR Overview & Forgiveness Terms
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IBR remains active (unlike SAVE, PAYE, or ICR, which have been blocked or eliminated) since it was established by Congress.
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Payment calculation: 10 % of discretionary income.
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Forgiveness provision:
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20 years for loans disbursed after July 1, 2014.
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25 years for older loans.
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PSLF (Public Service Loan Forgiveness) — if working full-time in qualifying public service and making 120 payments, forgiveness happens in 10 years, even under IBR.
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⚠️ Recent Pause in IBR Forgiveness
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The U.S. Dept. of Education has temporarily paused IBR-based forgiveness, citing a need to “update systems” to properly tally qualifying months.
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This affects over 2 million borrowers, including those who have already reached the 240 or 300 payments threshold.
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There’s no current timeline for when forgiveness processing will resume.
What’s Triggering These Changes?
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Legal and political shifts:
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Courts have blocked other IDR plans, and the “Big, Beautiful Bill” has removed SAVE, PAYE, and ICR. IBR survives for existing borrowers until July 2026–28 transition.
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System upgrades needed:
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Borrowers close to the forgiveness mark may face delays—but any extra payments should be refunded once systems are updated.
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What You Should Do Now
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Continue in IBR if it's your most affordable option.
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Track your qualifying payments (240 or 300), and retain documentation independently.
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Stay on top of income recertification to avoid payment spikes or lapses.
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Stay alert: Watch for official updates from ED about system fixes and forgiveness resumption.
🔍 Looking Ahead: New Repayment Framework
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Beginning July 1, 2026, all borrowers will be transitioned into one of two plans:
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A standard fixed-term repayment plan (10–25 years), or
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A new Repayment Assistance Plan (RAP)—an income-driven option with forgiveness after 30 years, eligible for PSLF.
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