The One-Time IDR Account Adjustment: What Counted, What Happens Now

The one-time IDR account adjustment is complete. It gave borrowers retroactive credit toward the 20- or 25-year threshold for income-driven repaymentIncome-Driven Repayment (IDR)A category of federal student loan repayment plans that calculate monthly payments based on income and family size rather than loan balance. Any remaining balance can be forgiven after 20–25 years of qualifying payments. (IDR) forgiveness.

Under an October 2025 court-approved agreement between the American Federation of Teachers and the Education Department (AFT v. U.S. DOE, No. 1:25-cv-802-RBW, D.D.C.), forgiveness has restarted for borrowers who’ve hit that threshold under Income-Based Repayment (IBR), Income-Contingent RepaymentIncome-Contingent Repayment (ICR)The oldest federal income-driven repayment plan, with payments generally set at 20% of discretionary income or a fixed 12-year amount, whichever is lower. It is the only IDR plan available to Parent PLUS borrowers after consolidation. (ICR), or Pay As You EarnPay As You Earn (PAYE)A federal income-driven repayment plan that caps monthly payments at 10% of discretionary income and forgives remaining debt after 20 years. It is only available to borrowers who took out their first federal loans on or after October 1, 2007. (PAYE).

Related: IBR Loan Forgiveness: How It Works and How to Qualify

Who Qualified for the One-Time Adjustment

You received the one-time account adjustment if your loans were owned by the U.S. Department of EducationU.S. Department of Education (ED)The federal agency that oversees federal student aid programs, issues regulations for federal student loans, and is the ultimate lender on Direct Loans. as of October 30, 2024. That includes all Direct Loans and federally held Federal Family Education Loan (FFEL) loans.

The consolidation window is closed. Loans that remained with commercial or private holders after that date did not receive retroactive credit. Those borrowers can still earn new qualifying months under IBRIncome-Based Repayment (IBR)A federal income-driven repayment plan that caps monthly payments at 10% or 15% of discretionary income, depending on when the loans were taken out. Remaining debt is forgiven after 20 or 25 years of qualifying payments., ICR, or PAYE going forward.

What the Adjustment Counted Toward Forgiveness

Any month in repayment counted toward forgiveness — regardless of the plan or payment amount. The Department also credited:

• Extended forbearances — 12 or more consecutive months, or 36 cumulative months before July 2024.
• Certain deferments, including all deferments before 2013 (except in-school) and economic-hardship or military deferments after 2013.
• Time before consolidation, if earlier loans were rolled into a Direct Consolidation Loan before the cutoff.

Periods of defaultDefaultThe status of a federal student loan after the borrower has failed to make required payments for 270 days. Default can trigger collection actions such as wage garnishment, tax refund offset, and damage to credit reports. and short administrative forbearances still don’t count.

What's Happening Now

Borrowers who reached 240 or 300 qualifying months through the adjustment receive automatic forgiveness under their current plan. The AFT settlement requires the Department to process those discharges.

Processing is active but backlogged. Golden emails — notifications confirming forgiveness eligibility — have been going out in batches since late 2025. The Department indicated in a March 2026 court filing that approvals may surge in the second half of March. But as of late February 2026, more than 576,000 IDR applications remained pending, and no discharges were processed during February.

Related: Got the Golden Email? What to Do Next

Your eligibility date controls your tax treatment. The American Rescue Plan Act (ARPA) made student loan forgiveness tax-free through December 31, 2025. That exemption was not extended. Under the settlement, your effective discharge date is the date you hit 240 or 300 qualifying payments — not the date the Department processes it. If that date falls in 2025 or earlier, your forgiveness is tax-free at the federal level. If your eligibility date is in 2026, the forgiven amount is taxable income under current law.

Related: Will I Owe Taxes on IBR Loan Forgiveness After 2025?

ICR and PAYE borrowers are included. The settlement covers all IDR plans, not just IBR. A January 2026 court filing identifies 10,873 IBR borrowers, 10,729 original ICR borrowers, and 820 PAYE borrowers as eligible for discharges.

Refunds for Overpayments

If you reached the 20- or 25-year threshold and continued making payments after that point, the Department will refund those payments once your discharge is processed.

You won’t receive refunds for payments made before you qualified or for extra “credit months” added by the adjustment itself. For example, if the adjustment gave you the final months needed to reach 300 and you made six more payments while waiting for processing, only those six are refundable.

The settlement requires the Department to reimburse borrowers for any payments made after the final qualifying month. Previous batches took weeks to months — there’s no set timeline.

Joint Spousal Consolidation Loans

Borrowers with joint spousal consolidation loans needed to separate their combined debt into individual Direct Consolidation Loans to receive the one-time adjustment.

The timing of that separation determined how much credit was received:

• Applied by June 30, 2025: Received the full one-time adjustment on the new Direct Loans.
• Applied on or after July 1, 2025: Received a weighted-average count of qualifying IDR or PSLFPublic Service Loan Forgiveness (PSLF)A federal program that forgives the remaining balance on Direct Loans after 120 qualifying monthly payments made while working full-time for a government or qualifying nonprofit employer. months instead of the full adjustment.
• Commercially held FFEL joint loans separated after that date: Did not receive PSLF credit and received limited IDR credit.
• Both deadlines have passed. Each separated Direct LoanDirect LoanA federal student loan made directly by the U.S. Department of Education under the William D. Ford Federal Direct Loan Program. Most federal student loans issued since 2010 are Direct Loans. now shows its own individualized count.

Related: How to Separate Your Joint Spousal Consolidation Loan

How Consolidation Affects Your Count Now

If you consolidate now, your new Direct Consolidation Loan will not receive retroactive credit from the one-time adjustment — you start fresh, and only future qualifying months count toward forgiveness.

Consolidation can still make strategic sense if you need to combine loans, access an IDR plan your current loans don’t qualify for, or remove a cosignerCosignerA person who signs a loan agreement alongside the primary borrower and becomes equally responsible for repayment. Cosigners are common on private student loans when the student has limited credit or income history.. Once consolidated, you can earn new forgiveness credit under an eligible IDR plan, and those payments are protected by the settlement.

ICR and PAYE are being eliminated by July 1, 2028, under the One Big Beautiful Bill Act. IBR will remain available for loans disbursed before July 1, 2026. Borrowers currently on ICR or PAYE will need to switch to IBR or the new Repayment Assistance Plan (RAP) before the sunset date.

How to Check Your Updated Payment Count

You can check your updated payment count by logging in to StudentAid.gov and opening your Aid Summary. Each loan lists its qualifying months toward IDR forgivenessIDR ForgivenessThe forgiveness of any remaining federal student loan balance after a borrower has completed 20 or 25 years of qualifying payments under an income-driven repayment plan, depending on the specific plan..

The Department removed the visual IDR tracker in April 2025 and has not restored it. A back-end data view still shows your totals. To access it, go to studentaid.gov/app/api/nslds/payment-counter/summary while signed in.

If your account shows “null” or missing counts under IBR but displays numbers for other plans like ICR or PAYE, that’s a data-sync issue — not a loss of credit. Those payments still legally count toward IBR forgiveness once the Department’s system updates.

Screenshot your counts and save them. They’re your best record if your data later disappears or changes.

If your count looks wrong after the adjustment — months are missing that should have been credited — start by gathering your records, filing a written dispute, requesting your file through a Privacy Act request, and escalating to congressional casework if the Department doesn’t respond.

Related: How to Fix Your IBR Payment Count

If you’ve tried the standard channels and your servicer won’t correct the count:

Related: What to Do When Your Student Loan Servicer Won’t Fix the Problem