Key Factors
- The Division of Schooling elevated processing of Earnings-Pushed Reimbursement purposes in July, reducing the backlog by greater than 100,000.
- Public Service Mortgage Forgiveness buyback processing additionally rose, however the backlog continued to develop amid excessive utility quantity.
- Issues stay concerning the Division’s means to handle workloads as layoffs loom and reimbursement modifications method.
The Division of Schooling reported a significant enhance in processing Earnings-Pushed Reimbursement (IDR) purposes in July, in accordance with the newest standing report (PDF File).
The company processed 304,844 purposes, up from 186,731 in June. In consequence, the IDR backlog fell to 1,386,406, down from greater than 1.5 million on the finish of June. It is also probably that the backlog drop consists of among the SAVE plan purposes which might be slated to be cancelled.
The backlog discount for IDR purposes will probably be welcome information to debtors ready for selections on reimbursement plans that would decrease month-to-month funds or result in eventual mortgage forgiveness.
Nonetheless, for debtors ready for Public Service Mortgage Forgiveness (PSLF) buyback, the information is just not as nice. Whereas utility processing elevated, the backlog considerably elevated.
Would you want to avoid wasting this?
@thecollegeinvestor The most recent Dept of Schooling IDR and PSLF buyback processing report simply posted for August 2025 and right here’s what we all know. #studentloans #studentloandebt #pslf ♬ authentic sound – The School Investor
IDR Processing Updates
The company processed 304,844 purposes in July 2025 – essentially the most processed since standing stories had been required by a lawsuit difficult the Division of Schooling’s dealing with of IDR plans. In consequence, the IDR backlog fell to 1,386,406, down from greater than 1.5 million on the finish of June, one other low.
This marks one of many strongest single-month reductions since April, when simply 79,349 purposes had been determined. The development follows months of uneven efficiency, wherein positive factors made in Could had been erased by June’s slowdown.
|
IDR Processing Backlog |
||||
|---|---|---|---|---|
|
Month |
April |
Could |
June |
July |
|
Processed |
79,349 |
285,694 |
186,731 |
304,844 |
|
Backlog |
1,985,726 |
1,582,641 |
1,511,504 |
1,386,406 |
PSLF Buyback Requests Rise
The Public Service Mortgage Forgiveness (PSLF) buyback program additionally noticed a rise in accomplished requests throughout July. The Division processed 3,280 circumstances, up from 2,224 in June. Nonetheless, nonetheless barely decrease than the Could processing of three,312.
However in contrast to IDR, the PSLF buyback backlog didn’t shrink. Pending circumstances climbed to 72,730, a rise of greater than 7,000 from the prior month.
Processing stays gradual. Debtors have reported wait instances of ten months, far longer than the two- to three-month common seen in 2024. A small inside group handles these requests with out help from mortgage servicers, limiting what number of will be determined every month.
Whereas the processing positive factors are good to see, a variety of effort can be wanted to clear the backlog.
|
PSLF Buyback Processing Backlog |
||||
|---|---|---|---|---|
|
Month |
April |
Could |
June |
July |
|
Processed |
1,472 |
3,312 |
2,224 |
3,280 |
|
Backlog |
49,318 |
58,716 |
65,448 |
72,730 |
Staffing Modifications And Future Processing
The July report comes because the Division prepares for important modifications in staffing and reimbursement packages. A Supreme Court docket resolution earlier this 12 months cleared the best way for deliberate layoffs, a part of a broader restructuring underneath the Trump administration. The reductions are anticipated to affect all workload related to mortgage forgiveness.
On the identical time, the Division is getting ready for the top of the SAVE plan and the launch of the Reimbursement Help Plan (RAP) in 2026. Debtors at present in forbearance underneath SAVE could need to change to different reimbursement choices within the coming months, including to the processing burden.
Whereas the July numbers for IDR are encouraging, they solely symbolize a single month’s knowledge (simply July 2025). If workers reductions proceed as deliberate, sustaining or enhancing this tempo could show difficult.
For PSLF buyback candidates, the rising backlog means that with out further assets, even incremental positive factors in processing pace will not be sufficient to maintain up with demand.
What Debtors Want To Watch
Debtors ready on IDR purposes or PSLF buyback requests ought to monitor the Division’s month-to-month stories to trace modifications in processing charges and backlog dimension.
Public service employees pursuing PSLF buyback must be ready for lengthy wait instances and maintain documentation of qualifying employment and cost historical past. For debtors who’re lower than 10 funds away from the 120 mark, it might make sense to modify plans to an lively reimbursement plan and pursue PSLF the “quaint means” of merely getting qualifying funds.
With the Division balancing a excessive workload, lowered staffing, and upcoming coverage modifications, debtors might face shifting timelines within the months forward. The most recent figures present that progress is going on but additionally that enhancements in a single space don’t assure quicker outcomes throughout all packages.
Do not Miss These Different Tales:
Editor: Colin Graves
The submit 72,730 Scholar Mortgage Debtors Caught In Forgiveness Backlog appeared first on The School Investor.
