Key Points
- New online applications for income-driven repayment (IDR) are being processed in about a week.
- Servicers are prioritizing cases where legal eligibility is clear, while SAVE-related requests remain delayed due to ongoing court injunctions.
- Backlog of applications able to be processed should be resolved in 6 to 8 weeks for many applications.
Student loan borrowers applying for income-driven repayment (IDR) plans through the Department of Education’s updated online application are seeing faster processing times, according to reports. In many cases, new applications are being reviewed and processed within a week.
The changes come as part of a broader effort to work through a growing backlog of more than two million IDR applications. These include requests for the new SAVE plan as well as older programs like PAYE, IBR, and ICR.
According to sources familiar with the process, student loan servicers have been instructed to prioritize the applications that can be legally processed without legal ambiguity.
“The goal is getting as many into plans as quickly as possible, so we are triaging scenarios,” said one official familiar with the internal triage strategy.
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@thecollegeinvestor Replying to @user214901592619 We confirmed all filing statuses (MFS and MfJ) are being processed by loan servicers. We also have more insight into the protocol for processing applications right now. #studentloans #studentloandebt #studentloanforgiveness ♬ original sound - The College Investor
Legal Hurdles Will Block Many IDR Apps
The SAVE plan, which launched under the Biden administration as a replacement for REPAYE, is currently restricted by a federal court injunction that also blocks certain forgiveness and payment calculation provisions.
While the plan itself has not been struck down entirely (yet), the ruling has made it impossible to process applications where borrowers are requesting SAVE exclusively or asking for the plan that offers the lowest monthly payment.
These scenarios, sources say, require additional federal guidance or legal review. Until those reviews are complete, any borrowers requesting SAVE will be waiting in limbo. This has led some to question if they should leave SAVE and apply for another IDR plan.
Some cases involving borrowers who are married (whether filing taxes jointly or separately) are now moving forward, though the legal complexity around joint income treatment under SAVE has contributed to past delays.
The Department of Education is currently working on resolving those questions while keeping servicers focused on what can move.
“Servicers are tasked with working on first moving applications forward where the eligibility for a plan is clear that isn’t enjoined or related to the injunction,” one source explained.
Servicers Are Prioritizing What They Can Process
Servicers are triaging applications, starting with cases that are straightforward and allowed despite the current injunctions.
These include borrowers who are eligible for older IDR plans like IBR and PAYE, or who have not requested SAVE as their first choice.
This means that borrowers who currently submit an application using the new online form at StudentAid.gov are seeing some of the fastest processing times - around one week. This is because the new application is currently compliant with all the injunctions and restrictions, meaning loan servicers know they can process these applications.
For borrowers who submitted applications in late 2024 or early 2025, their applications are effectively being put into piles: one pile of applications that are SAVE and must wait, one pile that is "recommended" and is awaiting guidance, and one pile that can be processed - including IBR, PAYE, and ICR.
It's also important to remember that paper applications, along with this triage, will take time.
Common Questions
How long does it take to process an IDR application now?
We're seeing reports that for borrowers who submit an online application, processing time is taking about 7 days.
Can I still apply for the SAVE plan?
No, you cannot apply for the SAVE plan.
What Borrowers Should Expect
Borrowers applying through the new system can typically see processing within a week. For borrowers who submitted applications earlier this year and are stuck in forbearance awaiting processing, those applications are being processed. The only ones that are not are SAVE and potentially those that selected "Recommended".
Servicers have said they aim to process all clear applications as quickly as possible. But the shifting legal environment and reduced federal staffing continue to affect the pace and clarity of processing in more complex cases.
If you need to get into a repayment plan as soon as possible, the best course of action is to apply using the new online application on StudentAid.gov.
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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.