Half-Million Student Loan Borrowers Stuck in Repayment Plan Backlog
A significant backlog continues to trap hundreds of thousands of student loan borrowers seeking affordable monthly payments, according to a recent court filing from the Trump administration. As of the end of February, 576,609 requests for income-driven repayment (IDR) plans remained pending. These plans, which cap payments at a percentage of discretionary income and offer forgiveness after 20–25 years, are a critical lifeline for millions struggling to manage their debt.
The same filing revealed that an additional 88,170 borrowers are waiting for a decision on their Public Service Loan Forgiveness (PSLF) buyback application. This program, established by the Biden administration, allows public service workers to purchase credit for periods of forbearance or deferment, accelerating their path to debt cancellation after 10 years of qualifying payments.
The Department of Education did not respond to a request for comment on the processing delays.
Progress and Persistent Challenges in Application Processing
While the IDR backlog has improved from its peak of nearly 1.4 million pending applications in July 2024, the current figure of over 576,000 still represents a substantial delay for borrowers. “At the current rate, if there were no more forms submitted, it would take them nearly three years to clear the backlog,” noted higher education expert Mark Kantrowitz.
In contrast, the queue for PSLF buyback applications has been growing. The number increased from 80,210 in November 2024 to 86,520 in January 2025, and now stands at 88,170. Carolina Rodriguez, director of the Education Debt Consumer Assistance Program in New York, warned that the situation could deteriorate further as millions of borrowers transition from the blocked SAVE plan.
The Fallout from the SAVE Plan’s Demise
More than 7 million borrowers remain in a Biden-era forbearance after federal courts halted the Saving on a Valuable Education (SAVE) plan. The Trump administration has temporarily kept these borrowers in forbearance but resumed accruing interest last summer. A payment restart is expected this spring.
“In the coming weeks, the Department will issue clear guidance on next steps for borrowers enrolled in the illegal SAVE Plan,” stated Undersecretary of Education Nicholas Kent, referring to the federal appeals court ruling. Borrowers will need to move to a different repayment plan, likely triggering a fresh wave of applications that could strain the system further.
A Crisis of Default and Affordability
The processing delays occur against a backdrop of severe financial strain. Kantrowitz’s analysis of government data shows approximately 9 million borrowers were in default as of December 2025. A recent survey by The Institute for College Access & Success and Data for Progress found that 42% of federal student loan borrowers say their monthly payments make it harder to afford basic necessities like food and housing.
These challenges are compounded by policy shifts. The Biden administration’s various debt relief and affordability initiatives were frequently blocked by Republican-led legal challenges. Now, President Trump’s One Big Beautiful Bill Act is poised to eliminate several existing IDR plans and other relief options, potentially narrowing the pathways available to struggling borrowers.
With over 42 million Americans holding student loans totaling more than $1.6 trillion, according to the Congressional Research Service, the scale of the repayment system’s strain is immense. The current backlog highlights a critical operational hurdle as the government navigates the end of temporary relief measures and prepares for a major policy reset.
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