This blog was updated on 03/26/2025 to reflect updates on the restoration of the IDR application.
By Amy Czulada and Aissa Canchola Bañez | March 25, 2025
The first couple of months of the second Trump Administration have been filled with chaos and uncertainty for students and borrowers across the nation.
In fewer than 10 weeks, we have witnessed this Administration attempt to lawlessly freeze funding and unelected billionaire Elon Musk and his Department of Government Efficiency (DOGE) bros gut critical programs families and communities rely on. We have seen the shuttering of the Consumer Financial Protection Bureau (CFPB) and the illegal firing of the Student Loan Ombudsman—a key advocate charged with helping student loan borrowers get desperately needed help with their student loans. Most recently, President Trump signed an executive order directing Secretary of Education Linda McMahon to take “all necessary steps to facilitate the closure” of the U.S. Department of Education (ED). The order came only one week after the Administration purged half of ED’s staff, including civil servants who helped process complaints from borrowers struggling with their student loans, and staff charged with holding student loan servicers accountable for failing to do their jobs.
This unprecedented chaos has wreaked havoc across our country and our economy. This uncertainty also rings true for student loan borrowers just trying to figure out how they can stay on top of their student loan debt.
Last month, in an extreme response to a judgment from the 8th Circuit on the ongoing legal challenges against the Saving on a Valuable Education (SAVE) repayment plan, the Trump Administration eliminated access to all Income-Driven Repayment (IDR) plans. They did so by removing the application from ED’s website and secretly ordering student loan servicers to halt all IDR application processing. Basically, if you weren’t already enrolled in an IDR plan, you have NOT been able to get into one.
A glimmer of hope for borrowers.
Last week, our team at the Student Borrower Protection Center (SBPC) with our partners at Berger Montague PC filed a lawsuit against the Trump Administration on behalf of the AFT for illegally depriving borrowers of their right to affordable monthly payments and pushing Public Service Loan Forgiveness (PSLF) relief out of reach. On Tuesday March 25th, during the first hearing since our lawsuit was filed, borrowers secured the first step towards victory as lawyers with the Department of Justice shared that ED plans to restore the online IDR application on March 26th. ED has since restored the application which can be found here. However, ED will not immediately resume processing the IDR paperwork. We will continue to fight to ensure that ED also resumes application processing as soon as possible.
Every day borrowers are forced to wait is a day they are deprived of their rights under federal law. More than 1 million borrowers have been stuck in the IDR application backlog even before the Trump Administration halted further processing. In addition to providing millions of borrowers with the ability to tie their monthly payment to their income and family size, IDR plans are the only way for public service workers to benefit from PSLF—a critical economic lifeline for public service workers like educators, nurses, and first responders across the country.
The Trump Administration’s action to block access to IDR has effectively broken the student loan repayment system and will push millions of borrowers further into the red. Borrowers currently stuck in the SAVE forbearance have not been able to switch plans to continue earning credit towards PSLF. We have heard from borrowers all over the country who are terrified that they are unable to afford their student loan bills and could fall behind.
We are proud to have secured this initial victory on behalf of borrowers, but we know this is just the first of many fights ahead. We will continue to keep folks updated on the status of these efforts.
Borrowers can take critical steps to protect themselves amidst all this chaos.
- Document your loan information and payment history: Borrowers should go to the Federal Student Aid website and download your student loan information and payment history documents.
- Screenshot your progress towards cancellation: Borrowers should now see a payment tracker on their Federal Student Aid portal that allows them to see their progress towards cancellation under IDR and PSLF. Make sure to screenshot this page for your records.
- Keep tabs for updates on the IDR application and updates on application processing: As of March 26th at 12pm est, ED has officially restored the online IDR application on the Federal Student Aid website. Borrowers can submit an application and should make sure to screenshot the process along the way. Keep these documents for your records and call your servicer to notify them that you submitted an IDR application and request to be placed into an immediate processing forbearance. We will continue to monitor for updates on ED’s plans to restart application processing.
- Request casework assistance from your member of Congress: With the CFPB shuttered and ED staff gutted in half, the Trump Administration is trying to cut off critical lifelines that borrowers have relied on when they have issues with their student loans. Borrowers should remember that members of Congress have entire casework teams that are responsible for helping constituents who are having issues with a federal agency. If borrowers are struggling to get answers from ED or their student loan servicer, they should reach out to their representatives and request casework assistance. SBPC launched a tool last week to help borrowers navigate this process.
Week by week, the Trump Administration is making it clear who they are working for… and it’s not working families crushed by student debt.
Borrowers can and must go on offense to protect themselves and get the help they need.
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Amy Czulada is the Outreach & Advocacy Manager at the Student Borrower Protection Center. Previously, Amy was a Research Analyst at 32BJ SEIU in New York City.
Aissa Canchola Bañez is the Policy Director at the Student Borrower Protection Center. Previously, Aissa led outreach and engagement efforts for the Office for Students and Young Consumers at the Consumer Financial Protection Bureau.