Student Loan Forgiveness Delays Grow as IDR and PSLF Backlog Deepens Under Trump Administration
The Trump administration is facing growing criticism as new court filings reveal significant delays in processing student loan forgiveness and repayment plan applications. Hundreds of thousands of borrowers remain stuck in limbo, unable to access income-driven repayment plans or loan forgiveness programs that are essential to keeping their monthly payments affordable.
For millions of Americans, student loan forgiveness and income-driven repayment are not optional benefits — they are the only path to financial stability. Yet, the latest data shows the backlog continues to grow, raising concerns that relief may remain out of reach for years.
More Than 800,000 IDR Applications Still Pending
As of the end of November, the U.S. Department of Education had 802,730 pending requests from borrowers seeking to enroll in an income-driven repayment plan. IDR plans cap monthly payments based on a borrower’s income and family size and offer student loan forgiveness after 20 or 25 years of qualifying payments.
Income-driven repayment plans are designed to prevent borrowers from falling into default, especially during periods of economic uncertainty. However, with applications stalled, many borrowers are left paying more than they can afford — or not paying at all.
Experts say the student loan repayment backlog is one of the largest in history and shows no sign of improving at the current pace.
PSLF Buyback Program Faces Major Processing Delays
Delays are not limited to IDR plans. Court documents also show that 80,210 applications for the Public Service Loan Forgiveness Buyback program remain under review.
The PSLF Buyback program allows eligible public service workers — including teachers, nurses, and government employees — to retroactively pay for missed months caused by deferment or forbearance. Once they reach 120 qualifying payments, they become eligible for full student loan forgiveness.
In November, only 280 PSLF discharges were completed nationwide, a number critics say is far too low given the size of the backlog.
Student Loan Forgiveness Approvals Drop to a Trickle
During November, just 170 borrowers enrolled in an income-driven repayment plan received student loan forgiveness. For a federal system serving more than 42 million borrowers, the pace has alarmed consumer advocates and higher education experts alike.
“At this rate, they will never fully clear the backlog,” said Mark Kantrowitz, a nationally recognized expert on student loan policy.
The Department of Education declined to immediately comment on the slow progress.
Government Shutdown Adds to the Confusion
The federal government shutdown from October 1 through November 12 may have further disrupted application processing. In its court filing, the Education Department acknowledged that the shutdown made it difficult to track how many new student loan forgiveness and IDR applications were received during November.
Borrowers say the lack of transparency only adds to their frustration, especially as interest continues to accrue on unpaid balances.
Millions of Borrowers Caught at the Worst Possible Time
The backlog comes during a particularly difficult period for federal student loan borrowers. According to Trump administration officials, more than 5 million borrowers were already in default earlier this year, a figure that could rise to nearly 10 million.
With a weakening labor market and rising living costs, many borrowers rely on income-driven repayment plans just to stay current. Without timely access to IDR or student loan forgiveness programs, default becomes almost inevitable.
“The federal student loan portfolio is probably in the worst state it’s ever been in,” Kantrowitz said.
SAVE Plan Shutdown Could Make Backlog Even Worse
The situation may soon deteriorate further. Borrowers previously enrolled in the Biden-era Saving on a Valuable Education (SAVE) plan are now being told they must transition to another repayment option.
As of July, more than 7.6 million borrowers were enrolled in SAVE. Although the program has been blocked by court order, millions remain in a temporary forbearance created during the legal battle.
As these borrowers attempt to move into income-driven repayment plans, experts warn the student loan repayment backlog could explode.
Interest Resumes While Borrowers Wait
In August, the Trump administration resumed charging interest for borrowers who remained in the SAVE-related payment pause. Many borrowers say their balances are growing every month while their IDR applications sit unprocessed.
“Their loans are getting bigger and bigger as interest accrues, but they can’t do anything about it,” Kantrowitz said.
Advocates argue that without immediate staffing increases and administrative reforms, student loan forgiveness and income-driven repayment will remain inaccessible for millions of Americans who qualify under the law.
Lawsuit Forces Transparency but Not Speed
The backlog numbers became public following a lawsuit filed by the American Federation of Teachers, which accused the administration of denying borrowers their legally protected rights. While the case ended in a settlement requiring regular status updates, it did not require the Department of Education to speed up processing.
In March, nearly half of the department’s staff was terminated, including employees who worked directly with student loan borrowers — a move critics say directly contributed to the current crisis.
What This Means for Borrowers Going Forward
For now, borrowers seeking student loan forgiveness or income-driven repayment should prepare for long delays. Financial experts recommend keeping documentation updated, monitoring loan servicer accounts closely, and avoiding missed payments whenever possible.
Without major policy changes, the student loan forgiveness backlog may remain one of the defining financial challenges for American households in the years ahead.
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