You May Need to Resubmit Your Student Loan IDR Plan Application. Here's Why
If Mohela is your student loan servicer, you may need to reapply for an income-driven repayment plan.
Designer491/Getty Images/CNET
An income-driven repayment plan can offer you a more affordable student loan payment. But if you applied for an IDR plan before April 27, 2025, and your servicer is Mohela, you may need to reapply.
Mohela posted on its website that IDR applications before this date didn't include your income information and would be automatically canceled. If you're already on an IDR plan like SAVE and you applied to change plans before this date, you'll also have to resubmit your application.
Borrowers who applied for an IDR after April 27 don't need to reapply. Your loans may be placed into a temporary forbearance while your application is processed.
Last year, the US Department of Education paused processing for IDR plans while the legality of one of them, the Saving on a Valuable Education plan, was being weighed by the courts. At one point last fall, online applications for IDR plans were even taken down from the StudentAid.gov website. IDR processing resumed in November of 2024. This year, IDR plans were paused again in March and reopened in April.
Mohela is one of several student loan servicers contracted to handle federal student loans for the Department of Education. Here's how to find out if Mohela is your servicer, how to resubmit your IDR application, and more options for borrowers enrolled in SAVE.
How to find out if Mohela is your servicer
If you're enrolled in SAVE, chances are you may not have logged in to your student loan account since before the pandemic. Between all the payment pauses and servicer changes over the past five years, you might not know who your current servicer is.
You can find out by logging in to your Federal Student Aid account at StudentAid.gov. Once you're logged in, you'll be able to view all your loans, your repayment status and your servicer information.
How to resubmit an income-driven repayment plan application
You can apply for an income-driven repayment plan online at StudentAid.gov, the financial aid office of the Department of Education. Here are the steps you'll need to follow:
Go to StudentAid.gov's IDR plan request page.
Select either "Apply for an Income-Driven Repayment Plan" or "Recertify or Change Your Income-Driven Repayment Plan."
Log in to your Federal Student Aid account.
Confirm your contact information, like your address, email address and phone number. Select "continue" when you're finished.
You'll see which loans are eligible for an IDR plan. Select "continue" to proceed.
The next few pages will ask you to confirm personal information, such as your marital status and family size.
Confirm the number of dependents you have and your income information. You'll need to provide proof of income, such as a W-2, paystub or bank statement.
You'll be able to review the different IDR plans you're eligible for and select one. You can weigh different options and payment scenarios using the FSA loan simulator.
Review your information and confirm and certify your application. Hit "continue" to submit your application.
Should SAVE borrowers move to a new IDR plan?
Though the SAVE repayment plan has been shuttered, you don't have to move to a new IDR plan at this time. Currently, your payments remain paused during the administrative forbearance.
Experts recommend using this downtime to explore other IDR options, like the income-based repayment plan, income-contingent repayment plan or the Pay as You Earn plan. If you're working toward debt relief through the Public Service Loan Forgiveness program or a similar program, then it may make sense to change IDR plans so you can hit your 120 payment goal faster.
If you're enrolled in the PSLF and would've hit your payment total if not for the current payment pause, you can apply for the PSLF buyback program instead of switching IDRs. This program may allow you to make the remaining payments required to reach the debt forgiveness status on your federal loans.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
15 minutes ago
- Yahoo
Vancouver company celebrating reusable food container success
started with just five stores but is now in institutions across Canada and the U.S. As Chad Pawson explains, local waste management officials say it's the type of private-sector ingenuity needed to address the region's garbage problem.
Yahoo
21 minutes ago
- Yahoo
Why Mondelez's Dividend Stands Strong in Uncertain Markets
Mondelez International, Inc. (NASDAQ:MDLZ) is one of the best dividend stocks for a bear market. Mondelez International, Inc. (NASDAQ:MDLZ) ranks among the top global snack makers and belongs to the consumer staples sector. During economic downturns, consumers typically continue buying food at consistent levels, and even tend to favor discounted options more, making large food companies like Mondelez appealing, especially when spending declines in more discretionary areas. A colourful array of products like candies, chocolates and gums on a supermarket shelf. Another reason investors are drawn to Mondelez International, Inc. (NASDAQ:MDLZ) is its strong dividend and reliable cash flow. In the latest quarter, the company generated $1.1 billion in operating cash flow and $0.8 billion in free cash flow, while returning $2.1 billion to shareholders through dividends and buybacks. Mondelez International, Inc. (NASDAQ:MDLZ) has also garnered attention on the dividend front. The company has been rewarding shareholders with growing dividends for the past 11 consecutive years. It offers a quarterly dividend of $0.47 per share and has a dividend yield of 2.83% The company has expressed confidence in its future earnings potential, which may support the strength and stability of its dividend payments. It has reaffirmed its outlook for the year, expecting organic net revenue to grow by around 5%. However, adjusted earnings per share are projected to decline by roughly 10% on a constant currency basis, mainly due to an unusual surge in cocoa prices. Despite this, the company anticipates generating over $3 billion in free cash flow for 2025. Since recessions often go hand in hand with falling stock markets, investors with shorter time horizons may find value in holding companies that offer steady or growing dividend yields. While we acknowledge the potential of MDLZ as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: and Disclosure. None. Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
Yahoo
21 minutes ago
- Yahoo
This Under-the-Radar Healthcare Stock Could Be a Solid Income Play
CVS Health Corporation (NYSE:CVS) is one of the best dividend stocks for a bear market. Even during economic downturns, people continue to rely on medications, essential consumer products, and affordable local healthcare. CVS Health Corporation (NYSE:CVS) serves as a convenient healthcare and retail destination within communities. A row of shelves in a retail pharmacy, demonstrating the variety of drugs and over-the-counter products. The company's overall business remains solid, thanks to its diversified operations and multiple sources of revenue. In recent years, it has expanded its presence in primary care and launched a subsidiary called Cordavis to focus on developing and marketing biosimilar drugs. Its broad reach across communities and wide range of services are key advantages. Lately, higher Medicare usage and increased post-pandemic healthcare costs have impacted the company's revenue and earnings growth. However, CVS Health Corporation (NYSE:CVS) remains profitable and maintains a solid cash position. In the most recent quarter, it reported $4.6 billion in operating cash flow. Looking ahead to 2025, the company has raised its full-year operating cash flow forecast from around $6.5 billion to approximately $7.0 billion. In addition, CVS Health Corporation (NYSE:CVS) appears to have significant room to grow its dividend. With a cash payout ratio of just 30%, even doubling that figure would still leave it within a sustainable range. Due to this strong cash generation, CVS Health Corporation (NYSE:CVS) has maintained its payouts since 1997. Currently, it offers a quarterly dividend of $0.665 per share and has a dividend yield of 3.96%, as of June 17. While we acknowledge the potential of CVS as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: and Disclosure. None.
