IDR (Income-Driven Repayment) Forgiveness is program for borrowers to receive forgiveness on their loans after paying on their loans for a period of time. The timeline will depend on your loan type and IDR you are enrolled in.
| Loan Type | Timeline |
| Parent PLUS Loans or Direct Consolidation Loans that include a Parent PLUS Loan | 25 years (300 months of payments) |
| Borrowers with only undergraduate loans | 20 years (240 months of payments) |
| Borrowers with graduate loans AND currently enrolled in the Pay As You Earn (PAYE) repayment plan | 20 years (240 months of payments) |
| Borrowers with graduate loans and NOT currently enrolled in the PAYE repayment plan |
25 years (300 months of payments) |
This type of forgiveness is considered taxable income. The American Rescue Plan Act (ARPA) has temporarily exempted student loan debt forgiven between January 1, 2021 and December 31, 2025 from federal income taxes.
A recent federal court injunction has barred the Department of Education from implementing parts of the SAVE plan. This injunction has also barred forgiveness programs related to the SAVE, PAYE, and ICR plans. Currently only payments made while in the Income Based Repayment (IBR) plan will count towards IDR Forgiveness