Some student loan borrowers have received email notifications regarding upcoming deadlines for recertifying their Income-Driven Repayment (IDR) plans. The messages, sent by federal loan servicers under the direction of the U.S. Department of Education, remind borrowers of the importance of timely recertification to maintain lower monthly payments.
Why It Matters
The IDR recertification process, which was paused during the COVID-19 forbearance period, is now restarting. Borrowers who fail to recertify on time risk being placed into a higher monthly payment plan, which could lead to financial strain.
With student loan repayments resuming after years of suspension, understanding the recertification timeline is crucial to avoid negative financial outcomes or damage to your credit.
What to Know
Some borrowers now have an extended deadline to submit their IDR recertification documents. Edifinancial Services, an official loan servicer for the federal government, is sending notice that some borrowers are now given until June 28, 2026, to recertify.
The recertification process will officially restart on March 1 for most borrowers, except those enrolled in the SAVE plan. Due to ongoing litigation, SAVE plan participants remain in administrative forbearance, and not all recertification dates have been finalized.
The lawsuit against the SAVE plan challenges the former Biden administration’s authority to implement broad repayment plan changes without congressional approval. This legal uncertainty has left borrowers wondering how their repayment status might be affected.
Most recently, the 8th circuit court of appeals ruled against the SAVE plan‘s implementation, further sealing the likely demise of this income-driven repayment plan. If continued litigation leads to more modifications or further delays, those enrolled in the SAVE plan may need to reconsider their repayment strategy.
For those who miss their recertification deadline, there could be serious financial consequences. Borrowers may see their monthly payment amounts increase significantly. According to the Student Loan Borrower Assistance guide, failure to recertify could lead to removal from an IDR plan or interest capitalization, which increases the total loan balance over time. To avoid these issues, borrowers are encouraged to complete their recertification on time.
Borrowers can also take advantage of an automatic recertification option by providing consent through StudentAid.gov. This allows the IRS to share their income information directly with loan servicers, simplifying the recertification process.
What People Are Saying
Mark Kantrowitz, student loan and higher education expert, previously told Newsweek: “If a borrower does not choose a repayment plan, they will likely be placed in a standard 10-year repayment plan, which has the highest monthly payment. So, overall, it will probably take a few months from now before the borrower must start making payments under a new repayment plan.”
Michael Lux, an attorney and founder of The Student Loan Sherpa, previously told Newsweek: “Recertification each year is critical. There are several reasons that missing the recertification deadline can be costly. For starters, failure to recertify can result in being placed on the standard repayment plan. For most borrowers, this is the most expensive of all federal repayment plans. Additionally, failing to recertify on time can cause interest capitalization. This is when unpaid interest gets added to your principal balance. When your interest capitalizes, you start paying interest on the interest, which is how debt balances can spiral out of control. Lastly, because a failure to recertify on time means getting kicked off your current IDR plan, it also means that you pause monthly progress toward student loan forgiveness.”
What Happens Next
Loan servicers are expected to send multiple reminders leading up to borrowers’ specific recertification deadlines. Borrowers can check their specific due dates by logging in to their loan servicer’s website or StudentAid.gov. Those facing financial hardship may also explore options such as income documentation updates or temporary forbearance while awaiting income recalculations.
The post Student Loan Borrowers Get Email About Payment Plan Deadline: What to Know appeared first on Newsweek.
