460,000 student loan borrowers seeking lower payments will be denied. What if you’re one of them?
The Ministry of Education denies nearly half a million student loan borrowers who have applied for minimum repayment plans based on their income.
Nearly half a million federal student loan borrowers who apply for monthly payments will be denied by the Department of Education.
Based on internal documents retrieved by Politicsthe department has rejected 460,000 student loan borrowers who have chosen minimum payment options based on their income. For most applicants, it was Save money for valuable education Repayment plan.
Save was defeated How did people apply for plans by federal courts in February? According to student loan expert Mark Kantrowitz, the education department may still be handling submitted applications before the Trump administration removes the save plan as an option.
As of June 30th, the department reported Pending application form 1.5 million For borrowers seeking an income-driven repayment plan. We handled 186,731 applications in June.
The Ministry of Education did not immediately respond to requests for comment.
Processing delays are the latest hurdles for borrowers looking to navigate student loan repayments. Millions of Salvation Borrowers currently have loans in a General tolerancepayments are expected to be pending until mid-2026. However, the Ministry of Education announced this month that these loans will start to earn interest again on August 1st, so borrowers will be Choose a different repayment program.
Here are some things you need to know when you apply for a repayment plan, and how you can start repayments.
How can I check the status of my loan and repayment plan requests?
If you apply for a new repayment plan and are rejected, the loan processor must notify you when the application is processed. You can also log in to check the status of your plan request StudentAid.gov You will be taken to the Account and My Activities page. The application must be listed as “Reviewing”, “Requires Action”, or “Completed or Closed”.
The federal student aid site says it usually takes about 30 days to process, but please note that delays should be expected due to the large amount of requests.
What happens if I get rejected because of a repayment plan?
If you apply for an income-driven repayment plan and are rejected, and you do not choose a different repayment plan, you could be placed on a standard 10-year repayment plan, Kantrowitz said. “It usually happens when the borrower is no longer eligible for an income-driven repayment plan.”
However, you can currently apply for a different repayment plan. Other repayment plans have been in a bit of a transition since the passage of one big beautiful bill law led by Republicans. Existing borrowers can still sign up for an income-based repayment plan. Two other income-driven repayment plans, income groups and salaries, are options on the federal student loan site, but are phased out.
Existing borrowers also have the option to register with a new plan passed on the invoice, the repayment support plan, which is a new plan, but this option will not be available until next year.
“IBR is still eligible for forgiveness, while ICR and PAYE are not, so the best option for most borrowers on a save repayment plan is the IBR,” Kantrowitz said. “Payments made under (previous) SAVE, ICR, PAYE, REPYE, IBR will count towards IBR’s forgiveness.”
you Save borrowers Who applies for a new repayment plan and is supported by processing delays, so your loan should remain in good condition while you wait. However, interest will begin accruing next month, so you can consider paying interest only while waiting for your application to be processed.