If your student loan repayment plan was denied, you’re not alone. It’s a frustrating experience that’s becoming more common, especially after recent regulatory changes. In late 2025, over 327,000 Income-Driven Repayment (IDR) plan applications were rejected due to shifts related to the end of the SAVE Plan.
But don’t worry, this isn’t the end of the road. There are steps you can take to address the denial and move forward with a repayment plan that works for you. In this blog, we’ll explore why denials happen, what to do next, and how you can get back on track.
Common Reasons for Denial
Understanding the reason behind your denial is crucial for taking the right steps. There are a few common reasons for a student loan repayment plan denial that you should be aware of:
Program Sunset
A significant reason for recent denials is the removal of the SAVE Plan from federal regulations. If you were applying for the SAVE Plan, your application was likely denied because it is no longer an active option. This was part of a broader administrative overhaul, and many applications that were pending for this plan were rejected.
Documentation Issues
Denials often occur due to missing or incorrect documentation. This includes missing signatures, inaccurate income reporting, or not submitting your most recent tax return. Even minor errors can lead to rejection, so it’s essential to double-check your application before submitting.
Ineligible Loan Types
Some loan types, such as Parent PLUS loans or Federal Family Education Loans (FFEL), are not eligible for most IDR plans unless consolidated into a Direct Consolidation Loan. If you applied for an IDR plan with one of these loans without consolidating, your application would be rejected.
Status Conflicts
Another reason for denial can be status conflicts. If your loans are currently in a grace period, in-school status, or certain types of forbearance, your application may not be processed. Make sure to confirm your loan status before applying for a repayment plan.
Immediate Next Steps
The good news is that student loan repayment plan denial is not the end of the line. Here are the next steps you should take to correct the issue:
Contact Your Servicer
The first thing you need to do is contact your loan servicer (e.g., MOHELA, Nelnet, or Aidvantage). Ask them for the specific reason your application was denied. They’ll provide you with details on what went wrong, whether it’s missing documentation, eligibility issues, or something else. Getting this clarification is key to fixing the problem.
Apply for a Different Plan
If the issue was related to the SAVE Plan’s sunset, you’ll need to apply for an alternative repayment plan. Use the FSA Loan Simulator to explore options like the Income-Based Repayment (IBR) plan, which is still available to most borrowers. The simulator will help you find a compliant plan that suits your financial situation.
Correct & Reapply
If your denial was due to errors, such as inaccurate income reporting or missing documents, you can correct the information and reapply through the official IDR application portal. Be sure to double-check all your details before submitting again to avoid the same mistake.
Consolidate if Necessary
If the denial was related to your loan type (e.g., Parent PLUS or FFEL loans), you may need to consolidate your loans into a Direct Consolidation Loan. This step will help make you eligible for the repayment plans that you want to access.
Submit a Reconsideration Request
If you believe your denial was a mistake, you can submit a reconsideration request with Federal Student Aid. This is your chance to ask for a review of the decision and get a second look at your application.
How to Avoid Future Denials
It’s important to be proactive to avoid running into the same issues down the road. Here are a few tips to ensure that your student loan repayment plan application gets approved next time:
Double-Check Your Documents
Always check your paperwork for accuracy before submitting your application. Ensure that all required fields are filled out correctly and that your income details are up to date. It’s especially important to ensure that you submit the right documentation, such as your latest filed tax return.
Stay on Top of Deadlines
Missing deadlines can lead to a denial. Be sure to submit your application and documents on time, and make a note of when the next renewal date is to stay ahead of the game.
Update Your Information Regularly
If your financial situation changes, make sure your loan servicer has the most up-to-date information. This includes any changes in your income or job status. Updating this info will help you avoid future issues.
Know Your Loan Status
Ensure that your loans are not in grace period, forbearance, or deferment before you apply for a repayment plan. If your loans are in one of these statuses, your application might be automatically rejected. It’s best to apply once your loans are active and you’re ready to start repaying them.
Frequently Asked Questions
1. Can I appeal my student loan repayment plan denial?
Yes! If you feel your student loan repayment plan denial was an error, you can file an appeal with your loan servicer or with Federal Student Aid. You may need to provide additional documentation or explain the circumstances of the error. Be sure to contact your servicer for the specific steps.
2. How long will it take to hear back after reapplying?
After you reapply for your student loan repayment plan, it usually takes about 3–4 weeks to hear back. During this time, your loan servicer will process the updated application and check the accuracy of your new information. If there are no further issues, you’ll be notified about your plan approval.
3. What should I do if I miss a payment after my repayment plan is denied?
If you miss a payment after your repayment plan is denied, don’t panic. Contact your loan servicer right away to explain the situation and discuss your options. They may offer you a temporary forbearance or deferment to help you avoid late fees and damage to your credit. It’s important to stay in communication with them.
4. What happens if I don’t reapply for a new repayment plan?
If you don’t reapply for a new repayment plan, you’ll likely continue on your current repayment schedule, which could mean higher monthly payments. This could make it harder to stay on top of your student loan debt. It’s crucial to find a suitable plan that fits your financial situation.
Get Back on Track and Take Control
A student loan repayment plan denial may feel like a major setback, but it’s just a bump in the road. By taking the right steps—contacting your servicer, updating your information, and exploring other repayment options—you can overcome this hurdle and get back on track.
Remember, persistence is key! Stay proactive, organized, and informed to avoid future denials. And when in doubt, don’t hesitate to ask for help. You’ve got this!
