Key Points
- Nearly 2 million income-driven repayment (IDR) applications remain pending, as revealed in the Education Department’s first court-ordered status report.
- Over 49,000 Public Service Loan Forgiveness (PSLF) buyback requests are still unprocessed, raising concerns for borrowers nearing forgiveness.
- While the Department offered no official timeline, estimates suggest it may take 6-8 weeks to clear the IDR backlog, though no firm commitments were made in court filings.
In a federal court filing prompted by a lawsuit from the American Federation of Teachers (AFT), the U.S. Department of Education disclosed, for the first time, the size of its student loan processing backlog.
According to the May 15 status report, nearly 2 million borrowers are still waiting for their income-driven repayment (IDR) applications to be reviewed. Another 49,318 requests under the Public Service Loan Forgiveness (PSLF) buyback program remain unresolved.
The disclosures are part of a legal battle over the Department’s removal of income-driven repayment plan applications - which the AFT said was an overreach beyond what the SAVE plan litigation warranted.
The status update offers a rare glimpse into internal operations but lacks any clear timelines for when borrowers can expect answers. Still, a source close to the process estimates that the IDR backlog could take at least 6-8 weeks to clear.
Related: How Multiple Contractors Handle Tasks For The Department of Education
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Massive Backlog Of IDR Applications
As of April 30, 2025, the Department of Education reported 1,985,726 IDR applications pending. These applications determine monthly payments based on a borrower’s income and family size, and can eventually lead to loan cancellation after 20 or 25 years of qualifying payments.
Only 79,349 IDR applications were processed during April. At that pace, clearing the full backlog without scaling operations would take nearly two years. However, a source we spoke to said they still expect the bulk of the backlog to be cleared within 6-8 weeks.
Applications that were recently submitted using the updated online form are being processed quickly, since they are known to qualify. Remember, the key issue was the IDR form had to be updated.
There are issues with borrowers who submitted forms via paper, since some of those forms cannot be processed. Borrowers may have selected an ineligible repayment plan (such as SAVE), which will be in limbo until the court cases surrounding those plans is resolved.
If you previously submitted a form, and selected SAVE or checked the box for "the plan with the lowest monthly payment", if you still want to change IDR plans, you may want to re-submit an updated request via the online form at StudentAid.gov.
Borrowers awaiting processing face uncertainty, not only about payment adjustments but also about their long-term path to forgiveness. It's also led some borrowers in PAYE or ICR to consider moving to IBR.
@thecollegeinvestor The first Dept of Ed status update detailing outstanding IDR applications and PSLF buyback requests. #studentloans #studentloandebt #studentloandebtcrisis #studentloanforgiveness #pslf ♬ original sound - The College Investor
PSLF Buyback Requests
The report also details the backlog in PSLF buyback requests, a program designed to allow borrowers to “purchase” missed months toward forgiveness for periods spent in deferment or forbearance. Only 1,472 requests were processed in April, with 49,318 still pending.
These figures are especially troubling for public service workers nearing the 120-payment threshold for loan forgiveness. Many borrowers are stuck in the SAVE forbearance and relying on the buyback process.
The buyback program was supposed to address those gaps, but delays now threaten to stall forgiveness for borrowers who believed they were nearly finished.
The difficulty with PSLF buyback is that it is a manual process, and due to the Department of Education layoffs, the team overseeing these requests is small. Each application takes about 20-30 minutes, since payment amounts and payoff letters are drafted manually.
More questions Than Answers
The AFT’s lawsuit alleges that the Department failed to meet legal obligations by stalling critical student loan repayment and loan forgiveness efforts. The court’s April 28 order required the Department to submit regular updates outlining progress.
While this first report fulfills the court’s mandate, it raises more questions than it answers. There is no mention of how many staff are assigned to process requests, how applications are prioritized, or what borrowers can expect moving forward. The Department has not committed to any concrete processing timeline in its filing.
An official familiar with internal operations estimate that clearing the IDR backlog could take 6-8 weeks if staffing remains stable and no new disruptions emerge. It will be more telling what the full May processing count looks like, since processing really resumed on May 10.
The PSLF buyback process may take even longer due to the manual review required for each case.
Next Steps
For those waiting on IDR applications to be processed or PSLF buyback approval, the situation is frustrating. Borrowers are encouraged to monitor their StudentAid.gov accounts and keep records of past employment and payment history in case follow-up documentation is required.
Borrowers close to the 120-payment threshold for PSLF should check their employment counts regularly and consider filing for PSLF buyback if eligible.
The next court-ordered update is expected on June 15, 2025. For now, this first status report offers a clear message: millions of borrowers are stuck in limbo, with no immediate end in sight.
Q&A
How long will it take to process my IDR application?
While there are no official estimates, we believe that previously submitted applications will take 6-8 weeks to get through the backlog, while new applications using the online form will take about a week.
What should I do if I can’t afford my student loan payments while my application is pending?
If your application is pending, you should be in forbearance and no payment is due.
How do delays in PSLF buyback requests affect my loan forgiveness timeline?
This is a frustrating one, as PSLF buyback processing is the most delayed, with borrowers reporting upwards of 6 months of delays right now. Your forgiveness isn't official until the buyback is approved and paid.
What happens if my IDR recertification deadline is approaching?
Your IDR recertification deadline should have already moved to 2026 if it was impacted in the last 3 months.
How can I check the status of my IDR or PSLF application?
You can login to your loan servicer or StudentAid.gov and see if it's been processed.
Are paper IDR applications being processed at the same speed as online applications?
No, paper applications are taking much longer. The online form will always be the faster.
What should I do if I applied for the SAVE plan?
The SAVE plan is effectively dead, and if you applied for it, your application will not be processed at this time. You can opt into another repayment plan by filing a new IDR application.
Will the Department of Education staff layoffs impact processing times?
The layoffs have significantly impacted PSLF buyback processing, as this is something that is only handled by the Department of Education internally. Other functions, like IDR processing, are handled by the various loan servicers.
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Editor: Colin Graves
Robert Farrington is the founder of The College Investor and is widely recognized as one of the nation’s leading voices on student loan debt and saving for college. He holds an MBA from UC San Diego Rady School of Management and has spent over 15 years researching, writing, and advising on student loans, 529 plans, financial aid programs, and saving and investing for young professionals.
Robert has been featured in the The New York Times, The Wall Street Journal, The Washington Post, NBC News, and Forbes, where he has been a regular personal finance contributor for over a decade. His work combines both professional expertise and personal experience – he successfully navigated his own student loan repayment journey and has helped thousands of readers do the same.
He is committed to making the intersection of personal finance and education transparent and accessible. You can learn more about Robert on the About Page or on his personal site RobertFarrington.com.