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The U.S. Department of Education (ED) is updating the Income Driven Repayment (IDR) Request Form borrowers complete to enroll, recertify, and change their IDR plan to support the upcoming changes from the One Big Beautiful Bill Act (OBBBA) and court actions. The Repayment Assistance Plan (RAP) will be added as a repayment option. The questions related to family size will be revised to accurately count the borrower's number of dependents, which is a component of RAP. The Paperwork Reduction Act of 1995 (PRA) requires ED to provide the public and Federal agencies with an opportunity to comment on proposed, revised, and continuing collections of information.
- Comments can be submitted electronically through the Federal eRulemaking Portal by searching Docket ID number ED-2026-SCC-1420 or sent by postal mail on or before June 22, 2026.
ED revised previous guidance to state that Graduate PLUS loans (no longer available after June 30, 2026) will be included in the new $257,500 lifetime borrowing limit that was established in the OBBBA. This guidance comes from a follow-up to conflicting answers to questions of whether Grad PLUS loans would not count in the lifetime borrowing limit. In addition, ED has also stated that loans borrowed before July 1, 2026, are counted in the new aggregate (lifetime) limits at the point where a student becomes subject to those limits.
The most recent data report required from a court order related to the American Federation of Teachers v. the U.S. Department of Education indicates that 21,200 borrowers had their federal student loans forgiven in March 2026. This results from ED’s public assurance to resume processing student loan forgiveness for eligible borrowers in Income-Driven Repayment (IDR) plans aside from the Saving on a Valuable Education (SAVE) plan. ED had previously suspended student loan discharges under income-driven repayment plans last year, citing court rulings over the future of the SAVE Repayment Plan, which has now officially ended.
- There were 424,583 IDR applications decided (approved of denied) in the month of March, with 553,966 applications still pending as of March 31.
- An estimated 21,200 borrowers enrolled in the following repayment plans had their loans forgiven; Pay As You Earn (PAYE), Income-Contingent Repayment (ICR), and Income-Based Repayment (IBR).
- ED has indicated they are running student loan discharges for IDR plans about every two months.
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Discharge of student loans is now taxable. However, if loans were discharged on or after January 1, 2021, and before January 1, 2026, they shouldn’t be taxed by the federal government.
- If loans were discharged on or after January 1, 2026, but the borrower met the IDR forgiveness before January 1, 2026, then that borrower is NOT subject to federal tax.
- Borrowers granted forgiveness should consult with a qualified tax advisor for further guidance.
Are Your Loans Nearing Default?
Loans enter a delinquency status the first day after a missed payment. Below are three tips to help prevent entering loan default:
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Check your loan status. Borrowers may be at risk for future wage garnishment if the loans have been moved to ED's collection agency, the Default Resolution Group. Log into your online account at your loan servicer’s website to check the loan balance is listed and active. If you are unsure who your loan servicer is, you can look it up by logging into studentaid.gov, navigating to your “Dashboard” and then the “My Loan Servicers” section.
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Explore different repayment options. You may be eligible for a more affordable payment plan based on your income. You can apply for an income-driven repayment plan online.
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Apply for a deferment or forbearance. Both options would put a temporary pause to repayment for a period of time. You can apply online through your loan servicer.
Are Your Loans in Default?
Loans enter default after 270 days have passed without making a loan payment. There are three ways to get out of default:
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Pay the loan in full. Contact the Default Resolution Group or visit myeddebt.ed.gov to confirm the amount owed.
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Rehabilitate the loan. Loan rehabilitation involves making nine consecutive, on-time payments based on income. This option takes longer to get out of default but can save on overall collection costs.
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Consolidate the loans. Consolidation combines multiple loans into one loan with new loan terms. Once the consolidation is complete, the borrower is eligible for lower monthly payments and the loan status is restored to good standing. Borrowers can apply for loan consolidation online.
More information on getting out of default and comparing your options is available at studentaid.gov.
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