Key Points
- The Department of Education significantly increased its processing of Income-Driven Repayment (IDR) applications in May 2025, with nearly 286,000 applications processed.
- Public Service Loan Forgiveness (PSLF) buyback processing also improved but at a slower pace, with just over 3,300 requests processed.
- Despite the progress, the backlog of pending IDR and PSLF requests remains large, and many IDR applications may never be processed.
The Department of Education processed 285,694 Income-Driven Repayment (IDR) applications during May 2025, more than tripling its April total of 79,349. This is according to the latest status report (PDF File) required as part of the American Federation of Teachers lawsuit against the Department of Education. The increase follows the resumption of full application processing, and the introduction of a new online IDR application.
Yet even with this sharp uptick in activity, more than 1.58 million IDR applications remained pending at the end of May. That figure reflects a decrease from 1.98 million pending applications just a month earlier, but it underscores the scale of the challenge the Department continues to face.
Officials have warned that not all applications may be completed. Borrowers who submitted applications and selected "SAVE" or selected "lowest monthly payment" may not see their applications processed until the lawsuit against the SAVE plan is resolved, or Congress acts to eliminate the SAVE plan altogether. This could be upwards of 1 million applications stuck in limbo.
PSLF Buyback Numbers Are Concerning
While the IDR program saw a surge in processing, progress on the Public Service Loan Forgiveness (PSLF) buyback program was more modest. The Department completed 3,312 buyback requests in May, up from 1,472 in April.
However, the total number of pending PSLF buyback requests increased from 49,318 to 58,761. The increase in pending requests suggests that new applications outpaced the Department’s ability to process them during the month.
The buyback program allows borrowers who had periods of federal student loan forbearance or deferment to retroactively count qualifying payments toward loan forgiveness if they meet the PSLF criteria. But processing delays have made it difficult for borrowers to access relief in a timely manner.
PSLF buyback is processed by a small team directly at the Department of Education. It's likely that the whiplash of layoffs, followed by rehiring, and the increased amount of applications, is making it hard for the team to process them timely or effectively.
In 2024, we were seeing average wait times on buyback applications taking 2-3 months. Today, we're seeing 6-7 months, and that number is growing.
What Borrowers Can Expect
The current pace of IDR plan processing, while improved, still leaves more than a million borrowers in limbo. Even if you exclude the SAVE plan borrowers, there are still many applications waiting to be processed. We've also heard reports from borrowers that filed the new online form, and are still stuck and not being processed. Even though many borrowers are reporting the online form only taking a few days, that's not true for everyone.
And the slower progress in the PSLF buyback system suggests that many public service workers may have to wait months longer to receive updates or loan forgiveness.
It's nice that these status updates are providing basic transparency, but more data on approval rates, average processing times, and reasons for delays would help both borrowers and policymakers assess the effectiveness of these programs.
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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.