Borrowers Stuck As IDR Recertification Confusion Grows

Millions of student loan borrowers relying on Income-Driven Repayment (IDR) plans are now facing unexpected increases in their monthly payments. IDR applications are currently paused following a court order blocking the SAVE plan, but this pause is also preventing routine income recertification, which when missed, causes payments to skyrocket.
While many anticipated extensions for IBR, PAYE, and ICR recertifications due to the ongoing processing pause, a recent statement from MOHELA has cast doubt on whether borrowers will actually receive extra time. Our previous reporting, also echoed by other publications, was that loan servicers would be pushing annual recertification deadlines during the processing pause.
MOHELA, one of the largest federal student loan servicers, posted an alert on its online portal that it has not received instructions from Federal Student Aid (FSA) to extend recertification deadlines for these repayment plans. This leaves many borrowers with two options: accept significantly higher monthly payments or request a forbearance.
The uncertainty follows earlier reports that borrowers on Reddit and other student loan forums about their recertification dates moving.
The issue is that many borrowers in the SAVE plan were seeing their recertification deadlines extended. However, for those in PAYE, IBR, and ICR, the outlook remains far less clear.
Borrowers in Income-Based Repayment (IBR), Pay As You Earn (PAYE), and Income-Contingent Repayment (ICR) are required to recertify their income annually to maintain lower monthly payments based on their earnings.
When borrowers miss the deadline, they are not removed from their IDR plan, but their payments default to the standard 10-year repayment amount, which can result in substantially higher bills.
For borrowers accustomed to manageable payments under an IDR plan, the jump to a standard 10-year repayment schedule could mean a sudden and unexpected increase of hundreds or even thousands of dollars per month.
MOHELA is encouraging borrowers enrolled in auto pay to cancel their automatic payments to ensure that they are not automatically billed for a payment they cannot afford.
Some borrowers may not have had to recertify their income since prior to the pandemic in March 2020, meaning their IDR payments may have been significantly lower.
For borrowers who cannot afford the sudden payment increase, forbearance is an option. MOHELA has stated that borrowers can request a forbearance or deferment to temporarily suspend payments. However, this decision comes with trade-offs:
Borrowers can find forbearance and deferment request forms on StudentAid.gov/forms-library and upload them to their MOHELA account.
Borrowers enrolled in the SAVE plan appear to be receiving recertification extensions, specifically awaiting the final outcome of the court proceedings.
Many borrowers on SAVE have reported seeing their recertification dates pushed back automatically. However, for PAYE borrowers, experiences are mixed, some are reporting an extension, while others are seeing their payments increase.
In a review of Reddit posts for the last two weeks, we found the following servicer-specific trends across over 70 threads:
However, many borrowers are mixing the various different plans. Most of the dates moving are related to SAVE, and very few are related to PAYE or IBR.
Without clear guidance from FSA on whether all IDR borrowers will receive extensions, many are left wondering whether they should prepare for higher payments or seek forbearance.
For borrowers struggling with this uncertainty, there are steps they can take to manage their payments and avoid delinquency and default:
You need to be monitoring your loans everyday if you’re nearing recertification.
If you are enrolled in auto-pay and can’t afford the higher amount, consider pausing auto-pay to avoid overdrafts.
If your payments have jumped and you can’t afford them, you may need to apply for forbearance. You can submit a forbearance request via StudentAid.gov or through your loans servicer to temporarily pause payments.
While MOHELA has stated that it has not been directed to extend IDR recertifications, we expect the Department of Education or FSA to issue guidance in the coming weeks.
Borrowers should continue checking loan servicer messages and StudentAid.gov for updates.
The current situation remains fluid, and many borrowers are caught in a waiting game, unsure if relief is coming or if they need to prepare for significantly higher monthly payments.
For now, staying informed and taking proactive steps will be key to avoiding financial strain.
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