Pupil Mortgage IDR Backlog Drops Beneath 1.1 Million

For months, income-driven reimbursement processing has been a supply of frustration for pupil mortgage debtors. In August, the Division of Schooling reported (PDF File) that it processed 305,641 IDR functions. That determine marks probably the greatest months since courts required public updates earlier this 12 months.

The backlog now stands at 1,076,266, down considerably from practically 2 million within the spring. For debtors, this implies sooner processing of functions that decide month-to-month fee quantities and eligibility for long-term pupil mortgage forgiveness.

PSLF buyback processing additionally noticed it is best month but, with 5,400 PSLF buyback requests processed. Nonetheless, the backlog of buyback requests nonetheless grew, highlighting that progress on this entrance is sluggish.

The improved processing alerts that the Division could also be allocating extra sources to deal with longstanding delays. Nonetheless, over one million circumstances stay undecided, and the way rapidly the company can maintain this tempo stays a urgent query, particularly as new reimbursement applications such because the Compensation Help Plan (RAP) are set to launch in 2026.

IDR Processing Backlog

The Division of Schooling had it is best month of 2025 when it got here to processing income-driven reimbursement plan requests. The Division reported that it processed 305,641 requests. The Division additionally reported that the backlog of requests dropped to 1,076,266.

Whereas these are each good indicators, a number of the numbers could also be deceptive. For instance, the variety of excellent requests probably contains numerous functions that can by no means be processed – particularly for debtors who chosen the SAVE reimbursement plan or “select the bottom reimbursement plan possibility”. Each of these choices had been blocked by the courtroom, and the Division has mentioned they are going to be deleting these functions from the processing queue.

PSLF Buyback Enhancements

Public Service Mortgage Forgiveness has lengthy carried a repute for purple tape, and the PSLF buyback program isn’t any exception. Debtors can use the buyback program to retroactively “purchase again” funds that might have been made throughout forbearance.

In August, 5,600 buyback circumstances had been processed, the best month-to-month complete thus far. That marks an enchancment over July’s 3,280 completions and displays regular progress for the reason that spring.

But the backlog stays daunting: greater than 74,000 circumstances are pending. Many debtors nonetheless report ready practically a 12 months for a call, far longer than this system was designed to deal with.

Since buyback circumstances are managed by a small, specialised staff, it limits what number of functions could be cleared every month. On the present price of processing, it might take greater than 13 months to clear the backlog.

What Comes Subsequent?

The blended image leaves debtors balancing cautious optimism with lingering considerations. For these making use of to IDR plans, the shorter queue suggests they could not face the identical lengthy waits as up to now. In speaking with debtors, the quickest functions being processed are these which can be linking their knowledge to the IRS Knowledge Retrieval Instrument, and making certain that each one choices are chosen for accessing a partner’s earnings. 

Particularly now, as reimbursement plan choices for debtors are clear, selections could be made.

For PSLF individuals, persistence stays crucial. Academics, nurses, and different public service staff near forgiveness might discover themselves caught ready for buyback credit to put up, regardless of documented eligibility. Whereas processing pace is enhancing, the queue remains to be lengthy sufficient that some debtors may stay in limbo properly into 2026.

It is one of many huge causes we advocate many debtors approaching PSLF forgiveness could also be higher served NOT going for buyback, however quite merely resuming funds.

The most recent report reveals some good points in utility processing, however the broader system stays underneath pressure. Workers reductions on the Division of Schooling increase questions on whether or not these enhancements can proceed. On the identical time, the transition away from the SAVE plan towards IBR and the upcoming RAP plan will create new administrative burdens.

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