Major IBR Changes Arrive as Millions Prepare to Exit SAVE

As we approach the end of December, major student-loan policy changes are coming into focus and one of the most significant involves Income-Based Repayment (IBR). 

At the same time, the Department of Education has formally announced the end of the SAVE repayment plan, as part of a settlement being pursued with the State of Missouri. As a result, millions of borrowers who relied on SAVE will now be required to transition into a new repayment plan. Against that backdrop, the expansion of IBR has become especially important. 

What Was “Partial Financial Hardship”? 

Despite how it sounds, partial financial hardship was not simply an income test. 

It was defined as a situation where: Your calculated monthly payment under the 10-year Standard Repayment Plan exceeded what your payment would be under IBR. 

If your income increased to the point where your IBR payment was equal to or greater than your 10-year standard payment, you were considered to no longer have a partial financial hardship and IBR eligibility could be denied or cut off, even if your balance remained high. 

This meant many borrowers were excluded from IBR not because they could comfortably afford payments, but because of how the comparison formula worked. 

What’s Changing Now 

With the removal of this requirement: 

• Borrowers are no longer denied IBR simply because their calculated payment exceeds a 10-year standard amount 

• Eligibility is no longer restricted by this payment comparison 

• More borrowers, especially those with rising incomes but persistent balances, can access IBR 

This shift significantly expands who can qualify and remain enrolled in IBR. 

Why This Is Especially Important for SAVE Borrowers 

This expansion comes at a critical moment. The Department of Education has now formally announced that the SAVE repayment plan will be ending, meaning borrowers currently enrolled in SAVE will be required to move to a new repayment plan. Many borrowers in SAVE are: 

• Close to income-driven forgiveness milestones, or 

• Relying on SAVE as a long-term strategy without a backup plan 

For borrowers nearing forgiveness, IBR may offer a clearer and more stable path to finishing forgiveness, particularly for those whose income previously blocked eligibility under the old IBR rules. 

Now that SAVE enrollment is ending, the expansion of IBR may present an opportunity borrowers did not realize they had—and in some cases, may help preserve progress toward forgiveness. 

How Student Debt Solutions Is Responding 

Student Debt Solutions has already updated its platform to: 

• Reflect IBR eligibility without the partial financial hardship restriction 

• Show accurate IBR payment estimates under the expanded rules 

• Help borrowers compare IBR and other plans side-by-side based on forgiveness timelines, not just monthly payments 

If you were previously told IBR “wasn’t an option,” or assumed SAVE was your only path forward, December is the time to take a second look. 

Why This Matters 

This change could significantly alter repayment and forgiveness strategies for many borrowers. However, not every borrower will benefit equally, and switching plans without reviewing long-term implications could delay forgiveness or increase total repayment costs. 

Borrowers are encouraged to review eligibility carefully and avoid making rushed decisions based solely on headlines. Log into Student Debt Solutions to review your full repayment picture and build a plan that supports your long-term goals.