Department of Education Closes Applications For Income-Driven Repayment Plans | Global News Avenue

The Department of Education has closed applications for income-driven repayment (IDR) programs and loan mergers applications in response to federal courts that block part of student loan repayment programs.

The department deleted its online application on Friday on the federal student aid website, as first reported Forbes. Apply for a loan merger and IDR plan, such as income repayment repayment (ICR), income-based repayment (IBR), payments you earn (PAYE) and saving valuable education (save).

“The federal court issued an injunction to prevent the U.S. Department of Education from implementing a Valuable Education Program (SAVE) program and other income-driven repayment (IDR) program. As a result, IDR and loan merger applications are currently unavailable and are not available at the moment. , “The announcement on the IDR application page said.

Application closure may be for The ruling of the Eighth Circuit Court of Appeals Maintain one Save the initial block of the plan. The judge’s decision reached an agreement with the states, which did not argue that the Secretary of Education and no former President Joe Biden had the right to implement such a generous plan.

As the ruling states, the decision may question other IDR programs: “The Education Secretary lacks the authority to authorize loan forgiveness in the ICR program.”

Advocates believe that the 8th Circuit Court of Appeals ruling does not include closing all IDR programs.

“It’s the Trump administration’s choice, and a cruel administration that will cause enormous pain to millions of working families,” Persis Yu, deputy executive director and board adviser at the Center for Student Borrower Protection, said in a statement .

The rescue plan’s borrowers have been tolerant since July, as two lawsuits temporarily blocked the repayment plan. These cases are walking back and forth in federal courts and the Department of Education Reopened older repayment plans Offer more options for borrowers.

These older repayment plans are part of the IDR application that was deleted. The department did not immediately respond to a request for comment, nor did it confirm whether borrowers in the current IDR plan will be transferred to other repayment plans, or whether the application will be open again later.