Alarming Update On Student Loan Forgiveness Raises Serious Concerns For Borrowers
The U.S. Department of Education has released a long-awaited update on student loan forgiveness, and the numbers are triggering fresh concern across the country. For the first time in months, new data reveals how many borrowers are actually receiving loan discharges through income-driven repayment (IDR) plans and Public Service Loan Forgiveness (PSLF).
While the update was expected to bring clarity, it instead highlights growing delays, technical issues, and a massive backlog that could worsen as millions of borrowers are forced to switch repayment plans following the announced end of the SAVE plan.
This latest student loan forgiveness update paints a troubling picture for borrowers who are counting on relief after decades of repayment.
New Court Filing Exposes Delays In Student Loan Forgiveness Processing
The Education Department’s update was submitted to a federal district court as part of a legal agreement with the American Federation of Teachers (AFT). Earlier this year, the union sued the department, arguing that it was unlawfully delaying student loan forgiveness under IDR plans and the PSLF Buyback program.
Under the court-approved agreement reached in October, the department committed to restarting forgiveness processing under ICR, IBR, and PAYE plans. It also agreed to resume monthly progress reports detailing how it is clearing the backlog.
However, the latest filing raises questions about whether the department can realistically meet borrower demand for student loan forgiveness in the near future.
Student Loan Forgiveness Under IDR Plans: Numbers Raise Red Flags
According to the November data, the department processed 245,441 IDR applications during the month. While that may sound encouraging, more than 802,000 applications remain stuck in the backlog. Although this is down from nearly two million earlier in the year, hundreds of thousands of borrowers are still waiting.
More concerning is the actual student loan forgiveness outcome. During the entire month of November, only 170 borrowers received loan discharges—and all of them were enrolled in the Income-Based Repayment (IBR) plan.
No discharges were approved for borrowers in the ICR or PAYE plans, despite the department’s agreement to resume forgiveness under those programs.
Technical Issues Slowing Student Loan Forgiveness Eligibility Checks
The department admitted that its systems are currently programmed to check forgiveness eligibility only for IBR borrowers. Eligibility checks for other IDR plans are still under development.
Officials say the National Student Loan Data System (NSLDS) is expected to begin reviewing eligibility for other IDR plans starting in February 2026, and only on a bi-monthly basis. That timeline could further delay student loan forgiveness for tens of thousands of borrowers who are already eligible.
Borrowers are also given a two-month opt-out period once notified of eligibility, meaning approved discharges may lag even further behind processing numbers.
Missing Data Raises Transparency Concerns
One major issue highlighted in the court filing is the lack of approval and denial data. The Education Department did not report how many IDR applications were approved versus denied, despite agreeing to provide this information if possible.
Without these details, it becomes difficult to assess whether progress on student loan forgiveness is meaningful or merely procedural. Critics argue that applications could technically be “processed” without being approved, leaving borrowers no closer to relief.
PSLF Buyback Backlog Reaches Alarming Levels
The situation looks even worse for borrowers seeking student loan forgiveness through the PSLF Buyback program. The backlog has grown from around 49,000 applications in April to more than 80,000 as of November.
Even though nearly 3,000 applications were processed last month, almost 4,000 new ones were submitted. At the current pace, it could take over two years to clear the backlog—assuming no new applications are filed, which is highly unlikely.
This delay is especially concerning for public service workers who rely on PSLF Buyback to count months spent in deferment or forbearance toward forgiveness.
SAVE Plan Ending Could Flood Student Loan Forgiveness System
These processing issues come at the worst possible time. Earlier this month, the Education Department announced plans to formally end the SAVE plan, pending court approval.
More than seven million borrowers currently enrolled in SAVE may soon be required to move into other repayment plans. This transition is expected to trigger a surge in new IDR applications, potentially overwhelming an already strained student loan forgiveness system.
Borrowers with pending SAVE applications may also be denied automatically, forcing them to reapply under different plans.
What Borrowers Should Know Right Now
For borrowers pursuing student loan forgiveness, the message is clear: delays are likely to continue, and timelines remain uncertain. While the department has reduced some backlogs, technical limitations, staffing challenges, and major policy changes threaten to slow progress even further.
Borrowers are encouraged to monitor their loan status closely, explore alternative repayment plans using official tools, and document all qualifying employment and payment history.
As millions of Americans depend on student loan forgiveness for long-term financial stability, the pressure is mounting on the Education Department to turn promises into real results.
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