Key Points
- A court filing shows 576,609 borrowers remain stuck in a repayment plan processing backlog, down from 1.4 million in July 2025.
- New online IDR applications are processing in 3-7 days for most borrowers, but older applications submitted in early 2025 remain trapped in the queue.
- Department of Education staffing cuts and the upcoming July repayment structure changes threaten to slow progress further and create new processing bottlenecks.
More than 576,000 federal student loan borrowers are still waiting for their student loan repayment plan applications to be processed, according to a recent court filing (PDF File).
That number is a significant drop from the 1.9 million borrowers stuck in the backlog as of April 30, 2025, but it signals that hundreds of thousands of people remain in limbo and the situation could get worse before it gets better.
The filing also revealed that 88,170 borrowers who applied for PSLF buyback are still awaiting processing.
Given that nearly 7 million borrowers in SAVE are going to have to change repayment plans soon, this backlog is concerning to say the least.
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New Applications Move Fast, But Old Ones Are Stuck
There is some good news for borrowers applying for income-driven repayment plans today. Generally, new online IDR applications submitted through StudentAid.gov are processing in roughly 3-7 days for most borrowers. The system, when it works, moves quickly.
The problem is with older applications. Borrowers who submitted IDR applications in early 2025 (many during the chaotic period surrounding the SAVE plan litigation and the beginning of negative credit reporting) are the ones still stuck in the backlog.
Many of these applications were filed using paper forms, and often require manual review, servicer coordination, or resolution of data discrepancies that automated systems cannot handle.
If you submitted a repayment plan application recently and it processed within a week, that is the current norm. But if you applied months ago and have heard nothing, you are likely one of the 576,000 still waiting.
And many of these borrowers are simply having their applications denied, leading to more confusion.
Suddenly moved out of SAVE forbearance, now on "income based" with no information
by u/melysandre in StudentLoans
Staffing Cuts And SAVE Plan Fallout
The backlog reduction from nearly 2 million to 576,000 is real progress, but the pace of that progress is now at risk. The Department of Education has cut nearly 40% of it's staff, many of whom directly affect loan servicing oversight and handle programs like PSLF buyback.
At the same time, the demise of the SAVE plan has created widespread confusion. The SAVE plan settlement has officially been signed off by a judge, but the final timeline to change repayment plans is still unknown.
Many of those borrowers are now applying for other IDR plans, which is adding new volume to a system already struggling to clear existing applications.
The new repayment system set to take effect in July 2026 add another layer of uncertainty. As borrowers scramble to understand their options and switch plans ahead of the deadline, servicers will face a surge of applications on top of the existing backlog.
What This Means For Borrowers Trying To Switch Repayment Plans
For borrowers currently trying to switch repayment plans, the best option is simply submit a new online application. The turnaround time is running 3-7 days for most borrowers.
However, there are still some exceptions to the rule, and existing applications are still struggling to get out of the queue.
Borrowers who are stuck in forbearance while waiting for plan processing should be aware that those months do not count toward forgiveness under IDR and only the first 60 days of processing count for PSLF.
That makes the backlog more than a paperwork delay — it can cost borrowers real progress toward loan forgiveness.
Common Questions
Why are 576,000 borrowers still stuck in the student loan repayment plan backlog?
The loan servicers have been slow to get through the wave of applications that arrived during the SAVE forbearance and related changes to repayment plan options.
Why are older IDR applications taking so much longer to process than new ones?
Older IDR applications were submitted using a different form or via paper uploads, which all require manual review. Many of these applications are simply being denied as a result of being so late or incomplete.
What does the backlog mean for borrowers trying to earn credit toward loan forgiveness?
Borrowers who want to change repayment plans should submit a new application. Time in forbearance does not accrue months towards forgiveness.
How does the end of the SAVE plan affect the processing backlog going forward?
There are concerns that the backlog could once again grow, as 7 million borrowers in SAVE need to change repayment plans over the next 6 months.
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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.