Student Loan Relief โStalled: Backlogs Persist as Legal Battlesโข Loom
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arlington, VA – September 11, 2025 – Millions of student โloan โborrowers remain in โlimbo as the Department of Education continues to grapple with massive submission backlogs for critical forgiveness and repayment programs. A newly released โstatus report reveals slow, but steady, progress โin processing applications, even as a major legal challenge threatens toโ expand and further complicate the pathโ to relief.
The latest filing, the department’s sixth consecutive monthly update, paints a picture of persistent hurdles for โborrowers seeking affordable payment plans through Income-Driven Repayment (IDR) plans and the โPublic โService โLoan Forgiveness (PSLF) Buyback program. The situation is โnotably urgent as borrowers brace for potential developments in a meaningful lawsuit filed by โขa national labor union.
Over a Million Still Waiting for IDR Relief
As of Monday’s report, over 1.076 million applications for various IDR plansโ remain unprocessed. This leaves a substantial number of borrowers unable to access the affordable payment โoptions โคguaranteed by federal law.While the backlog โhas decreased from nearly two million earlier this spring – withโค over 300,000 applications processed in August – โcritics argue the current pace is insufficient. Many borrowers have been waiting for a decision for six months orโ longer.
Adding to the frustration, the Department of Education reportedly โprepared 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 โคdue to a legal challenge) or optedโค 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 โto help thoseโค previously ineligible for Public Service Loan Forgiveness due to periods of deferment or forbearance.The backlog for this program increased to 74,510 applications inโ August, marking the sixth consecutive monthly rise.
While the rate of increase appears to โขhave slowed, andโ processing has accelerated – 5,600 applications were processed โฃlast month comparedโ to 3,280 in july – the department would still โขrequire over 13 months to โขclear the โexisting backlog assuming no new applications are submitted. Given ongoing eligibility for the SAVEโค plan,โ this is a highly unlikely scenario.
Legal Challenge Set to โExpand
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 caseโฃ is expected later this week, potentially impacting millions more โborrowers.
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