What repayment plan options (income-driven plans, standard, graduated) became available or limited after reclassification?

1. What the Department formally changed — a final rule to ensure an income‑contingent option

The Department of Education adopted, without change, an interim final rule that amends regulations so the agency continues to offer an income‑contingent repayment plan consistent with its statutory obligations under the Higher Education Act; that rule was published as final on January 15, 2025 and is intended to preserve an IDR-type option while other litigation and system work proceed ^{[1] [2]}.

2. SAVE plan access limited; borrowers placed in general forbearance while systems are fixed

Because of litigation and implementation problems, the Department placed borrowers in the SAVE plan into a general forbearance while servicers and systems are updated; the Department and Office of Federal Student Aid signaled servicers won’t be able to accurately calculate SAVE payments until approximately fall 2025 (or system changes expected by December 2025 in later guidance), and borrowers in SAVE therefore have their recertification deadlines adjusted and their payments effectively paused until the fix ^{[3] [5] [2]}.

3. Borrowers can switch to older IDR plans (IBR, ICR, PAYE) — with caveats

Multiple sources note servicers were directed to accept or hold applications for other income‑driven plans: borrowers can apply for IBR, ICR, or PAYE in some phases and servicers will hold certain IBR applications that were previously denied until system changes are completed; the Department expects borrowers will be able to choose among plans while SAVE is under repair ^{[3] [6] [1]}. The Federal Register and ED guidance also say the Department may build a SAVE‑compatible version that mirrors 2015 REPAYE payment terms but does not expect completion until at least early fall 2025 ^[1].

4. Standard and graduated repayment remain baseline options — but movement between plans can be administratively bumpy

Standard (10‑year) and graduated plans are longstanding statutory options; guidance and consumer sites emphasize borrowers must stay in contact with servicers and may be moved between plans during recertification or when enrolling in IDR alternatives, which can interrupt autopay or require re‑enrollment ^{[7] [6]}. Available sources do not provide a comprehensive, authoritative list of every subgroup’s immediate access to standard or graduated plans after the reclassification; that level of operational detail is not found in current reporting.

5. Legislative proposals and budget plans could further change which plans exist for new borrowers

Outside of agency action, reconciliation and congressional proposals described in analysis pieces would overhaul IDR for new borrowers: some proposals would eliminate existing IDR plans for new borrowers and create a new Repayment Assistance Plan (RAP), or place current SAVE borrowers into a modified IBR; these are policy proposals or legislative actions distinct from ED’s administrative steps and would change long‑term plan availability if enacted ^{[4] [8]}.

6. Who is most affected and what choices borrowers face now

Borrowers on SAVE are the most immediately affected: they are in a general forbearance and must watch recertification notices; many are being told to consider moving to IBR/ICR/PAYE if those plans produce a lower net present value or if they need active repayment. Servicers were instructed to hold certain denied IBR applications and to process them after system upgrades, meaning some borrowers should reapply or follow up with their servicer when the system reopens ^{[1] [3] [6]}.

7. Limitations, competing views, and what’s not in the record

Reporting and federal notices agree on the forbearance and the final rule to preserve an IDR option, but think tanks and advocacy groups disagree about policy direction: some analyses see proposed replacements (RAP) as less generous and likely to raise monthly payments, while ED frames rules as compliance and technical fixes pending litigation ^{[4] [1] [8]}. Available sources do not mention exhaustive, up‑to‑the‑day operational details for every servicer, every loan type, or the exact status of graduated repayment enrollments for all borrowers; those granular items are not found in current reporting ^{[2] [7]}.

Bottom line: the Department adopted a formal rule to keep an income‑contingent option on the books, paused active SAVE calculations and placed SAVE borrowers in forbearance while systems are rebuilt (with fixes expected in late 2025), and allowed or encouraged movement to older IDR plans (IBR, ICR, PAYE) as practical alternatives — but longer‑term legislative proposals could replace or reshape these plans for future borrowers ^{[1] [2] [3] [4]}.