IDR Loan Consolidation Plans Closed: Here’s What You Can Still Do
Updated on March 6, 2025
Quick Facts
All IDR and loan consolidation applications are frozen. The Education Department shut them down without explanation, leaving borrowers stuck.
Paper applications might still work—but no guarantees. Some servicers are processing them, while others are holding applications in “pending” status.
No timeline for when IDR plans will reopen. Borrowers could face higher payments if they can’t enroll, switch, or recertify.
Overview
On February 21, the Education Department (ED) closed all Income-Driven Repayment (IDR) plan applications and federal loan consolidation—without warning and without clear explanation.
The federal court ruling only blocked the SAVE plan, so why did the ED freeze everything else, too? That’s the million-dollar question.
Now you’re locked out, unable to consolidate loans or enroll in IDR, and there’s no clear timeline to reopen applications. Here’s exactly why this happened—and what you can do next.
Why Did the ED Shut Down All IDR Applications When the Court Only Blocked SAVE?
The Education Department (ED) didn’t have to freeze every IDR application—but they did anyway.
A federal court ruling in January 2025 temporarily blocked the SAVE plan, arguing that ED might not have the authority to forgive loans under it. But the decision didn’t say a word about older IDR plans, like IBR, PAYE, or ICR.
Still, ED overreacted. Instead of just pausing SAVE applications, they shut down everything—including IDR enrollments, plan switches, and loan consolidation requests. No warning, no explanation, and no legal requirement to do so.
Why? They haven’t said.
I spoke with other student loan lawyers and advocates. The best guess we have is that the department panicked. Rather than risk more legal battles, it pulled the plug entirely—leaving borrowers with higher payments, fewer options, and no answers.
Will Paper IDR Applications Still Be Processed?
Yes—for now. Loan servicers are still processing paper IDR and consolidation applications, but that could change. Get your IDR form here.
As of Tuesday, February 25, my team and I are still seeing our clients’ paper applications go through. But with no clear guidance from the Department of Education, some people on the popular subreddit /r/StudentLoans are reporting that servicers are holding applications in “pending” status, waiting for further instructions. Others are processing them if they were submitted before the official shutdown.
There’s no firm answer. Servicers haven’t received clear instructions, and we don’t know if applications postmarked after the court ruling will eventually be blocked.
National consumer advocacy groups and reporters have been pressing the Education Department for clarity, but so far, no response. We might get more details in the next few days.
If you need to recertify or enroll, submitting a paper application is still worth a shot. Just know you’re rolling the dice until we get an official update.
How Long Will the IDR/Consolidation Freeze Last?
No one knows.
The Department of Education hasn’t given a timeline, just a vague notice that applications are “unavailable” due to the court ruling. That leaves millions of borrowers stuck with no clue if this will last weeks, months, or longer.
My best guess is that it depends on the courts. If the case moves quickly, we could see a resolution in a few months. But if the legal battle drags on—or if the Department is waiting for political direction—this freeze could stretch much longer.
What if I Submitted an Online Application Before the Shutdown?
If you started a Direct Consolidation application online before the shutdown, you might be stuck. Borrowers are reporting that their online applications are frozen, with pages grayed out and no updates from servicers.
There’s a chance that some online applications submitted before the shutdown will still go through, but there’s no official confirmation. You can call Aidvantage for official updates.
If you need consolidation to qualify for IDR or PSLF, and your online application isn’t moving, submitting a paper application might be your best bet.
If I Was Switching to an IDR Plan Before the Freeze, Will My Application Still Go Through?
Maybe—but there are no guarantees. If you submitted an online IDR request right before the system shut down, your servicer might not be able to process it.
Some borrowers are being told their applications are stuck in “holding” status until further notice, while others are being advised to stay on their current plan or make payments under the standard plan until IDR access reopens.
To avoid surprises, contact your servicer ASAP. Ask if your application is still being processed and whether you should submit a paper form as a backup.
Will Recertification Dates Change?
For now, if you’re already on SAVE, your first student loan recertification deadline is extended to February 1, 2026, just like the Department of Education previously announced.
But what if you’re on IBR, PAYE, or ICR?
Recertification dates for these plans vary, and if yours is coming up, the shutdown could create problems. With the online portal down, paper applications might be your only option.
If you can’t recertify and your payment jumps to the standard repayment amount, you may need to request forbearance or deferment to avoid unaffordable payments.
Call your servicer to see if you qualify for an economic hardship deferment or administrative forbearance while this gets sorted out.
ED Updates on the SAVE Plan (https://www.ed.gov/higher-education/manage-your-loans/save-plan)
Will I Be Forced Into the Standard Repayment Plan?
If your IDR plan expires and you can’t renew, your loans could default to the 10-year standard repayment plan—which means much higher payments.
If you get a billing statement with a payment you can’t afford, call your servicer immediately. Ask about deferment, forbearance, or any temporary options to keep your payments manageable until IDR plans are available again.
Bottom Line
The Education Department froze all IDR and loan consolidation applications, even though the court ruling only paused SAVE—leaving millions of borrowers stuck with no timeline, no clear answers, and no way to move forward.
If your IDR plan lapses, you could be forced onto the standard repayment plan with much higher payments. If you were trying to consolidate for PSLF, this freeze could stall your progress toward loan forgiveness.
But you still have options. Paper applications might go through, deferment or forbearance could buy you time, and the right guidance can help you avoid mistakes that could cost you thousands.
Don’t wait for this mess to sort itself out.
Book a call with our student loan expert today to protect your PSLF progress and keep your path to forgiveness on track.
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