Why Income Driven Repayment Plans Are Temporarily On Hold

Everyone · Explainer · Updated October 1, 2026 · LearnLife Editorial

What Are Income-Driven Repayment Plans?

Income-driven repayment plans adjust federal student loan payments based on a borrower’s income and family size, making it easier to afford monthly payments. Unlike fixed payments in standard plans, IDR payments can vary each year to better match financial ability. This flexibility is especially helpful for borrowers with low or fluctuating income.

There are several types of IDR plans, such as Income-Based Repayment (IBR), Pay As You Earn (PAYE), Revised Pay As You Earn (REPAYE), and Income-Contingent Repayment (ICR). Each calculates payments slightly differently but generally limits payments to 10–20% of discretionary income. Discretionary income typically means the amount you earn over a certain threshold, usually related to poverty guidelines.

For example, if a borrower’s adjusted gross income is $35,000 and the poverty guideline for their family size is $15,000, their discretionary income might be $20,000. Under an IDR plan requiring 10% of discretionary income, annual payments would be $2,000, or about $167 per month, even if the standard payment would be several hundred dollars more.

IDR plans also offer loan forgiveness after 20 or 25 years of qualifying payments, which can help borrowers who struggle with long-term repayment.

How Do Income-Driven Repayment Plans Work?

To enroll in or continue an IDR plan, borrowers submit documentation of their income and family size to their loan servicer, often using tax returns or recent pay stubs. The servicer calculates the monthly payment based on the submitted information and adjusts it annually.

Here’s a step-by-step example:

1. A borrower submits their most recent tax return showing an income of $40,000.
2. The loan servicer calculates discretionary income by subtracting 150% of the poverty guideline from the borrower's income.
3. If the borrower's discretionary income is $25,000 and the plan requires 10%, the annual payment is $2,500, or about $208 per month.
4. The borrower pays $208 monthly for the next year unless they update their income, which may change the payment amount.

If a borrower’s income decreases significantly, they can submit new documentation to lower their payments. Conversely, if income rises, payments may increase. Borrowers must recertify their income yearly to maintain these adjusted payments and avoid being placed on a standard repayment plan.

Loan forgiveness is another key feature. After making payments for the required 20 or 25 years, the remaining loan balance may be forgiven, with no tax penalty in many cases. This helps borrowers who cannot fully repay their loans within the standard repayment period.

Why Are Income-Driven Repayment Plans on Hold?

Income-driven repayment plans are temporarily on hold because the federal government has paused student loan payments, interest accrual, and income recertification requirements. This pause provides financial relief to borrowers facing economic challenges and is part of a broader loan relief program.

During this pause, borrowers do not have to submit income information or make monthly payments, and their loan balances generally do not increase due to interest. The pause also suspends collection activities on defaulted loans.

This means that borrowers currently in IDR plans will have their payment amounts frozen during the pause, and no new income certifications will be required until the hold ends. This reduces paperwork and stress for borrowers unable to update income documents right now.

The pause helps borrowers avoid falling behind on loans during difficult periods, but it also temporarily stops progress toward loan forgiveness based on payment counts.

Why Does This Matter for Borrowers?

This pause matters because it offers immediate financial relief to many struggling borrowers but also creates important considerations for the future. By not requiring payments or income recertifications, borrowers avoid immediate financial pressure and paperwork.

However, when the pause ends, borrowers will need to recertify income to continue benefiting from IDR plans. If they fail to do so, their servicer will likely shift them to a standard repayment plan with higher, fixed payments.

Borrowers should also be aware that the paused period generally does not count toward the years of payments needed for loan forgiveness. This means the clock on loan forgiveness is effectively stopped during the suspension.

Understanding these factors helps borrowers plan their finances. For example, a borrower who earned less during the pause may want to prepare updated income documents to avoid higher payments later. Others might want to save funds during the pause in anticipation of increased payments once it ends.

What Other Terms Are People Confused About?

Many borrowers confuse income-driven repayment plans with deferment, forbearance, or standard repayment. Here's what sets them apart:

Knowing the difference helps borrowers select the best option. IDR plans are designed for affordability and forgiveness, while deferment and forbearance offer short-term relief but may increase overall debt.

What Should Borrowers Do Now?

During the current hold on income-driven repayment plans, borrowers can take several proactive steps:

1. Stay informed. Regularly check updates from your loan servicer and official federal student aid websites.
2. Keep careful records. Save all notices, emails, and documentation related to your loans and the pause.
3. Review your finances. Track your income and family size changes, so you’re ready to update your information when asked.
4. Prepare paperwork now. Collect recent tax returns, pay stubs, or other proof of income. This speeds up recertification once the pause ends.
5. Reach out for help. If you’re unsure about your options, contact a student loan counselor or financial advisor who can guide you.
6. Avoid private loans. If you have private student loans, this pause does not apply. Consider budgeting carefully or exploring repayment assistance for those loans separately.

Taking these steps helps borrowers avoid surprises and maintain eligibility for income-driven repayment benefits when payments resume.

How Will Income-Driven Repayment Plans Resume?

When the hold on IDR plans ends, borrowers will be asked to submit updated income and family size information to recertify their payment amounts. Loan servicers typically notify borrowers well in advance with instructions on how to complete this process.

If a borrower submits updated information promptly, their monthly payment will be recalculated to reflect their current financial situation. If they do not respond in time, their loan servicer may automatically switch their loan to a standard repayment plan, which usually means higher, fixed payments.

It’s important to watch for communications from your loan servicer and act quickly. Missing deadlines can significantly increase monthly payments and affect loan status.

Additionally, new regulations or changes to income-driven repayment plans may be introduced, so staying informed through official channels is key.

Where Can Borrowers Find More Information?

Reliable and up-to-date information on income-driven repayment and the current pause can be found in several official sources:

• The Federal Student Aid website explains IDR plans, eligibility, and how to apply or recertify (What Is Income Driven Repayment?).
• Articles on managing payments and potential downsides offer insight into IDR’s pros and cons (Potential Downsides of IDR Plans).
• Guidance on adjusting or changing plans helps borrowers tailor repayment to their needs (Can You Change Income Driven Repayment Plan?).
• For personalized help, free student loan counseling services are available through nonprofit organizations.

Checking these resources regularly ensures borrowers have accurate information and can make informed decisions about their student loans.

Frequently asked questions

Do income-driven repayment plans accrue interest during the payment pause?

Under the federal student loan payment pause, interest generally does not accrue on most federal loans, including those in IDR plans. This helps borrowers avoid growing debt during the pause period.

Can borrowers switch income-driven repayment plans while payments are paused?

Borrowers can contact their loan servicer to discuss plan changes during the pause, but formal plan changes and income recertification usually take effect once the pause ends.

What happens if a borrower does not recertify income after the pause?

If income is not recertified, the loan servicer may place the borrower on a standard repayment plan with higher payments, losing the income-driven benefits until recertification occurs.

Are private student loans eligible for income-driven repayment plans or the payment pause?

No. IDR plans and the federal payment pause apply only to federal student loans. Private loans have separate terms and repayment options.

Does the payment pause count toward loan forgiveness under IDR plans?

Payments paused during the hold typically do not count toward the payment requirements for loan forgiveness, so borrowers may need to make additional payments later.

How can borrowers prepare for the resumption of payments?

Borrowers should update income documents, stay in contact with their loan servicer, review their budget, and be ready to submit income information promptly when requested to avoid payment increases.