Student Loan Borrowers Fear the Worst: Survey Reveals Growing Concerns Over PSLF and IBR Forgiveness in 2025

The beginning of 2025 has done little to ease student loan borrowers’ fears surrounding the uncertainty of loan forgiveness — and frankly anything student loan related at this point. Where the Biden administration sought to make student loan forgiveness programs more accessible, the Trump administration aims to do the opposite. With major changes, such as firing nearly 50% of the Department of Education staff and signing an executive order to limit eligibility for Public Service Loan Forgiveness (PSLF), student loan borrowers are on edge as we wait to see what happens next.

Our 2025 Student Loan Planner Survey revealed our readers are anxious about the stability of loan forgiveness, specifically under PSLF and Income-Based Repayment (IBR). Additionally, two in five student loan borrowers are worried about being able to afford higher income-driven repayments.

These growing anxieties aren’t without reason. New information comes out every day with alarming and conflicting headlines. While we don’t have all the answers about what the future holds (we’re along for the ride just like you), hopefully, we can calm some of your fears with what we do know to help prevent missteps in your repayment strategy.

Borrowers are worried about the future of PSLF and IBR forgiveness

The uncertainty surrounding student loan forgiveness is intensifying, creating what can best be described as emotional whiplash for borrowers. As we shift from hopeful promises of mass loan forgiveness to a much more conservative stance on loan repayment, many borrowers are left with anxiety and downright distrust for the future of federal student loan programs —  especially when it comes to certain income-driven repayment (IDR) plans and the PSLF program.

So, let’s face these fears head-on…

Is income-based repayment going away?

One major concern for student loan borrowers is the potential elimination of income-based repayment forgiveness. Our 2025 Student Loan Planner Survey found that 40% of student loan borrowers believe 20- to 25-year loan forgiveness under the IBR plan will be gone by the end of 2025.

This fear stems from recent conservative court rulings and the Trump administration’s vocal opposition to loan forgiveness. However, there’s some reassuring news for borrowers: the IBR plan has a solid legal foundation.

The 8th Circuit Court of Appeals, known for its ultra-conservative stance, has expressly determined it can’t touch the IBR plan as part of its ruling on the SAVE plan. Why? Because the IBR plan was authorized by Congress and was “specifically established to enable more-favorable repayment terms and ultimately loan forgiveness for borrowers who could demonstrate financial hardship.” This suggests, despite all the rhetoric, the legal foundation for IBR forgiveness remains strong.

Since the courts can’t undo IBR forgiveness, the Trump administration would need significant congressional support to make changes. Specifically, they need 60 votes in the Senate, which seems unlikely at the moment.

Is the PSLF program at risk under the Trump administration?

The future of Public Service Loan Forgiveness (PSLF) is another big concern for student loan borrowers. Our survey showed that 27% of borrowers believe that PSLF is also on the chopping block this year. Given recent actions to limit eligibility, this fear is understandable. However, PSLF is also protected by law, and any significant change would require legislative action.

It’s worth noting that Republicans tried to repeal PSLF back in 2017, but the attempt failed despite having larger majorities in Congress than they do now. The law surrounding PSLF remains intact, and even with the Trump administration’s push to limit eligibility, complete elimination is unlikely without broader political support.

The fear of losing access to PSLF and IBR forgiveness is widespread, but it’s important to recognize that these programs are statutory. They’re backed by laws that are difficult to overturn without a significant political shift requiring support from Congressional Democrats.

So, while PSLF and IBR forgiveness remain under scrutiny with the current political landscape, student loan borrowers should take comfort in knowing that their statutory nature makes them a tough target.

Real world implications of mass student loan borrower confusion

The dismantling of the Department of Education and abrupt overhaul of federal student loans has real-world consequences. Student loan borrowers are confused, and for good reason. They have no idea what to expect with their student loans at this point. Many are acting like payments won’t restart anytime soon and others are making costly mistakes in their repayment strategy out of fear of the unknown.

Borrowers are unprepared for IBR payments

When we get the final SAVE plan ruling, there’s a chance that other IDR plans might get swept up in it — leaving only the statutory IBR plan in place. Our survey results show some concerning issues that overall highlight borrowers are not prepared for an IBR-only scenario. For example:

• The majority of student loan borrowers are filing joint taxes. A lot of high-income households won’t be able to qualify for IBR because they won’t have a partial financial hardship. Filing taxes separately should be more of a focal point for married student loan borrowers. Yet, 37% of survey respondents are filing their 2024 taxes jointly. 
• Many borrowers haven’t recertified their income in years. About one in five borrowers haven’t recertified their income since the COVID forbearance started in March 2020. While some borrowers are reporting IDR recertification dates as far out as 2026 and 2027, a large number of respondents (around 34%) reported not knowing when their recertification date is — further highlighting that borrowers aren’t prepared for what’s to come.
• Most borrowers have a $0 payment at the moment. Our survey shows the vast majority of our readers are going for IDR loan forgiveness, with about 60% being stuck in the SAVE forbearance waiting around to make payments. Jumping from no payment to a large IBR payment is going to be a recipe for disaster.

With a high percentage of borrowers filing taxes jointly and a wide mixture of income recertification dates, these findings clearly support that many borrowers aren’t planning for future IBR payments.

What happens if affordable student loan payments disappear?

Many borrowers haven’t thought about their student loans in years, and some are even falsely being told they have payment due dates that are way off into the future. With the current climate, it’s clear that student loans are heading back to a harsh “normal” that’s going to catch a lot of borrowers by surprise.

According to our survey, around 40% of survey respondents don’t believe they have enough money in their budget to afford payments jumping back up. If borrowers can’t make their monthly student loan payments, they might fall behind on payments or abandon their repayment strategy altogether — both of which can have devastating consequences.

Keep in mind that our readers are primarily six-figure income earners who are highly educated. So, if this group is struggling, then it’s safe to assume borrowers overall are going to be in a much worse position when higher payments resume.

Next steps for navigating the uncertainty

Based on our survey, the majority of borrowers understand that programs like PSLF and IBR forgiveness are statutory, and therefore, unlikely to go away. But many borrowers are still fearful of the uncertainty of loan forgiveness considering the chaos we’re seeing in the student loan world. Additionally, student loan borrowers are worried about having higher monthly payments.

Unfortunately, many borrowers aren’t filing their taxes in the most advantageous way, which could lead to a significant (and potentially unmanageable) increase in their loan payments. And for some, it’s just easier to mentally ignore their student loans altogether — which we don’t advise.

Recent court rulings have thrown everything into question in terms of which IDR plans will be available going forward. Plus, you can’t make any real moves in your repayment strategy at the moment since IDR processing is temporarily suspended. However, once it opens back up, it’s going to be more important than ever to stay engaged to determine the best path forward. Keeping track of your payment due date, income recertification anniversary and most up-to-date repayments strategies(e.g., filing taxes separately) will be key to navigating this rocky terrain.

And as always, our team is ready to help through our one-on-one consults, free resources and our new SLP Insiders newsletter.