Status of IDR Plans
Understandably so, there is a lot of confusion about where the different income-driven repayment (IDR) plans stand today and what they’ll look like in the future. Let me break it down for you.
The different plans
There are currently a handful of different income-driven repayment (IDR) plans:
SAVE
PAYE
ICR
IBR
RAP
Each plan has its own separate eligibility criteria and unique monthly payment calculation. I’m not going to get into those nitty-gritty details in this blog post. Instead, please visit the link below to learn more about them.
Where they currently stand
SAVE
Still blocked by the ongoing litigation, so borrowers can’t technically apply for it.
Unless they switched repayment plans, borrowers enrolled in the plan before the litigation are still in forbearance, where no payments are due, but interest accrues.
Borrowers can expect to stay in forbearance until early 2026, at which point they will have to apply for a different plan.
It’s a matter of when, not if, the SAVE plan will officially be canceled. There is no chance it survives the ongoing litigation.
PAYE & ICR
Both are still available, and borrowers can apply for either.
However, they will eventually be phased out due to the One Big Beautiful Bill (OBBB).
Borrowers must apply for and be enrolled in the plans before July 1, 2027. No new enrollments will be accepted on or after this date.
As long as a borrower is enrolled in either plan on or before July 1, 2027, they can stay on it until ~Spring 2028.
In Spring 2028, borrowers enrolled in PAYE and ICR will have to apply for either IBR or RAP.
IBR (both the “new” and “old” versions)
It’s still available, and borrowers can apply for it.
It will continue to be an option for borrowers. The OBBB did NOT get rid of it.
RAP
It’s a brand new plan that hasn’t been implemented, so borrowers can’t apply for it yet.
Will likely be available in late spring/early summer 2026.
How to decide which plan is best
The most common question I get is, “Which plan is best for me?” It comes down to which plan(s) they’re eligible for, their goals (pay off vs. forgiveness), and their financial circumstances (income, family size, etc.).
Assuming a borrower has significant student loan debt and is pursuing forgiveness (either through Public Service Loan Forgiveness or 20-to-30-year IDR forgiveness, here is how I’d prioritize the plans:
New IBR
PAYE
Old IBR or RAP
This is an oversimplification of it all, but I hope this helps give folks a place to start.
