The Trump administration is continuing to process student loan forgiveness and income-driven repayment (IDR) applications at a slow pace, leaving a massive backlog for hundreds of thousands of borrowers, according to a recent court filing.
By the end of November, 802,730 applications to move into an IDR plan remained pending with the U.S. Department of Education. IDR plans cap a borrower’s monthly payments at a percentage of their discretionary income and cancel any remaining debt after 20 to 25 years. Additionally, 80,210 applications for Public Service Loan Forgiveness (PSLF) Buyback were still under review. The program allows public servants with 120 months of qualifying service to retroactively credit missed payments due to deferment or forbearance.
In November, just 170 borrowers had their IDR debt canceled, and 280 received PSLF discharges. Higher education expert Mark Kantrowitz warned, “At this rate, they will never fully clear the backlog.” The Education Department has not responded to requests for comment, and it remains unclear how the federal government shutdown from Oct. 1 to Nov. 12 affected processing times.
Many borrowers rely on IDR and forgiveness programs to manage their monthly payments and eventually reduce their debt. Over 42 million Americans hold student loans, totaling more than $1.6 trillion in outstanding debt. The backlog comes as a result of staffing cuts at the Education Department in March, when nearly half of its staff, including those assisting borrowers, were terminated.
The backlog is expected to grow. Borrowers previously enrolled in the now-defunct Biden-era SAVE plan must transfer to other repayment plans, potentially creating millions of new applications. As of July, over 7.6 million borrowers remained in SAVE, and while the program has been blocked since February, many are still on SAVE forbearance.
Borrowers have struggled to resume payments after leaving SAVE. Nancy Nierman, assistant director of the Education Debt Consumer Assistance Program, noted that clients “are waiting months for their IDR applications to be processed.” Meanwhile, interest accrual on paused loans has resumed, increasing balances for borrowers who cannot complete the transfer. Kantrowitz added, “Their loans are getting bigger and bigger as interest accrues, but they can’t do anything about it.”