Nearly 2 Million Student Loan Borrowers Face Delays as Repayment Plan Backlog Grows

The U.S. Department of Education has revealed a backlog of nearly 2 million income-driven repayment (IDR) plan applications, leaving federal student loan borrowers in limbo as they await approval or denial of their requests.

In a court filing dated May 15, the Department disclosed that 1.98 million IDR applications remained pending at the end of April. Only about 79,000 applications were processed during that month. The filing came in response to a lawsuit by the American Federation of Teachers (AFT), which challenged the Trump administration’s prior shutdown of online IDR application access.

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“These findings confirm what borrowers have known for months: Their applications for loan relief have effectively been going into a void,” said Winston Berkman-Breen, legal director at the Student Borrower Protection Center.

Income-driven repayment plans are designed to cap monthly loan payments based on a borrower's income, providing a pathway to manageable repayment and eventual loan forgiveness. However, ongoing legal disputes over the Biden administration’s SAVE plan have complicated access to such options.

AFT President Randi Weingarten called the backlog “outrageous and unacceptable,” adding, “Millions of borrowers are being denied their legal right to an affordable repayment option.”

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The Trump administration blamed the Biden administration for the delays, claiming prior inaction masked rising default rates. In contrast, Sarah Sattlemeyer, a former Biden administration advisor, noted that the backlog originated last year and spans both administrations due to ongoing legal challenges.

The Department’s staff reductions in recent months may also be contributing to the slow processing pace, according to higher education expert Mark Kantrowitz. The backlog threatens to delay loan forgiveness timelines and push many borrowers closer to default and collection activity.