Department of Education Removes Key Student Loan Forgiveness and Repayment Applications

The Trump administration’s Department of Education has unexpectedly taken down two critical online applications for student loan borrowers, disrupting access to loan forgiveness and income-driven repayment (IDR) plans. On Friday, the department removed the online application portal for IDR plans, which allow borrowers to make payments based on their income and family size, with potential loan forgiveness after 20 or 25 years. Additionally, the Direct consolidation loan application—which helps borrowers qualify for Public Service Loan Forgiveness (PSLF) and get out of default—was also taken down.

Why Were the Applications Removed?

The removal follows a ruling last week from the 8th Circuit Court of Appeals, which expanded a block on student loan forgiveness and lower payments under several IDR plans. The ruling stems from a Republican-led lawsuit that has already blocked the SAVE plan, President Biden’s IDR program designed to offer lower payments and better forgiveness options.

As a result, the Department of Education added a message on its website stating:

“A federal court issued an injunction preventing the U.S. Department of Education from implementing the Saving on a Valuable Education (SAVE) Plan and other income-driven repayment (IDR) plans. As a result, the IDR and loan consolidation applications are currently unavailable.”

Impact on Borrowers

The sudden removal of these applications could cause chaos for millions of borrowers who:

• Need to enroll in IDR plans to secure lower monthly payments.

• Must recertify their income to update their payment amount (required annually).

• Want to consolidate loans to qualify for PSLF or exit default.

Borrowers can still submit paper applications, but this could lead to long delays, as processing times were already severely backlogged before the online portal was taken down.

What’s Next?

The 8th Circuit Court’s decision has made it unlikely that the SAVE plan will survive, and forgiveness under the ICR and PAYE plans is now in serious jeopardy. However, the IBR plan—which was created by Congress rather than executive action—remains unaffected.

For now, borrowers should expect:
✅ Paper applications only for IDR and loan consolidation.
✅ Processing delays, possibly for months.
✅ No new student loan forgiveness approvals under affected plans.

This development could put many borrowers at risk of higher payments, stalled forgiveness progress, and financial uncertainty—just as federal loan payments recently restarted after a multi-year pause.

See more in: https://www.forbes.com/sites/adamminsky/2025/02/24/department-of-education-takes-down-key-student-loan-forgiveness-and-repayment-applications/