Overview
- The department says system updates removing IBR’s partial‑financial‑hardship screen will be finished by late December, with servicers holding and later processing applications that would have been denied.
- Forgiveness under income‑driven plans becomes taxable again on January 1, 2026, and the department agreed not to issue 1099‑C forms to borrowers who reach forgiveness by December 31, 2025.
- Under the One Big, Beautiful Bill Act, SAVE is ended, ICR and PAYE will phase out by July 1, 2028, IBR remains available without the hardship test, and a new Repayment Assistance Plan starts in 2026 with 30‑year forgiveness.
- Parent PLUS borrowers must consolidate into Direct Loans by July 1, 2026 to preserve income‑driven eligibility, and new federal borrowing caps take effect the same day.
- A court filing indicates a potential SAVE‑case settlement could be announced by December 15, which could push remaining SAVE borrowers into other plans next year.