Student Loan Relief Stalled: Backlogs Persist as Legal Battles Loom
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arlington, VA – September 11, 2025 – Millions of student loan borrowers remain in limbo as the Department of Education continues to grapple with massive submission backlogs for critical forgiveness and repayment programs. A newly released status report reveals slow, but steady, progress in processing applications, even as a major legal challenge threatens to expand and further complicate the path to relief.
The latest filing, the department’s sixth consecutive monthly update, paints a picture of persistent hurdles for borrowers seeking affordable payment plans through Income-Driven Repayment (IDR) plans and the Public Service Loan Forgiveness (PSLF) Buyback program. The situation is notably urgent as borrowers brace for potential developments in a meaningful lawsuit filed by a national labor union.
Over a Million Still Waiting for IDR Relief
As of Monday’s report, over 1.076 million applications for various IDR plans remain unprocessed. This leaves a substantial number of borrowers unable to access the affordable payment options guaranteed by federal law.While the backlog has decreased from nearly two million earlier this spring – with over 300,000 applications processed in August – critics argue the current pace is insufficient. Many borrowers have been waiting for a decision for six months or longer.
Adding to the frustration, the Department of Education reportedly prepared to deny or reject over 400,000 IDR applications this summer. These denials largely target applicants who sought enrollment in the SAVE plan (currently blocked due to a legal challenge) or opted to allow their loan servicer to select the lowest-payment IDR plan. These borrowers will likely be forced to reapply, further swelling the backlog.
PSLF Buyback Backlog Continues to Grow
The situation is even more concerning for borrowers pursuing forgiveness through the PSLF Buyback program, designed to help those previously ineligible for Public Service Loan Forgiveness due to periods of deferment or forbearance.The backlog for this program increased to 74,510 applications in August, marking the sixth consecutive monthly rise.
While the rate of increase appears to have slowed, and processing has accelerated – 5,600 applications were processed last month compared to 3,280 in july – the department would still require over 13 months to clear the existing backlog assuming no new applications are submitted. Given ongoing eligibility for the SAVE plan, this is a highly unlikely scenario.
Legal Challenge Set to Expand
The mounting frustrations are fueling a major legal battle. A national labor union currently suing the Department of Education over these backlogs is seeking to considerably broaden the scope of its challenge. A key update in the case is expected later this week, potentially impacting millions more borrowers.
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