The Department of Education reported a major increase in processing Income-Driven Repayment (IDR) applications in July, according to the latest status report (PDF file). 72,730 Student Loan Borrowers Stuck
The agency processed 304,844 applications, up from 186,731 in June. As a result, the IDR backlog fell to 1,386,406, down from more than 1.5 million at the end of June. It’s also likely that the backlog drop includes some of the SAVE plan applications that are slated to be cancelled.
The backlog reduction for IDR applications will likely be welcome news to borrowers waiting for decisions on repayment plans that could lower monthly payments or lead to eventual loan forgiveness. 72,730 Student Loan Borrowers Stuck
However, for borrowers waiting for Public Service Loan Forgiveness (PSLF) buyback, the news is not as great. While application processing increased, the backlog significantly increased.
IDR Processing Updates
The agency processed 304,844 applications in July 2025 – the most processed since status reports were required by a lawsuit challenging the Department of Education’s handling of IDR plans. As a result, the IDR backlog fell to 1,386,406, down from more than 1.5 million at the end of June, another low. 72,730 Student Loan Borrowers Stuck
This marks one of the strongest single-month reductions since April, when just 79,349 applications were decided. The improvement follows months of uneven performance, in which gains made in May were erased by June’s slowdown.
PSLF Buyback Requests Rise
The Public Service Loan Forgiveness (PSLF) buyback program also saw an increase in completed requests during July. The Department processed 3,280 cases, up from 2,224 in June. However, still slightly lower than the May processing of 3,312.
Key Points
- The Department of Education increased processing of income-driven repayment applications in July, cutting the backlog by more than 100,000.
- Public Service Loan Forgiveness buyback processing also rose, but the backlog continued to grow amid high application volume.
- Concerns remain about the Department’s ability to manage workloads as layoffs loom and repayment changes approach.
The Department of Education reported a major increase in processing Income-Driven Repayment (IDR) applications in July, according to the latest status report (PDF File). 72,730 Student Loan Borrowers Stuck
The agency processed 304,844 applications, up from 186,731 in June. As a result, the IDR backlog fell to 1,386,406, down from more than 1.5 million at the end of June. It’s also likely that the backlog drop includes some of the SAVE plan applications that are slated to be cancelled.
The backlog reduction for IDR applications will likely be welcome news to borrowers waiting for decisions on repayment plans that could lower monthly payments or lead to eventual loan forgiveness. 72,730 Student Loan Borrowers Stuck
However, for borrowers waiting for Public Service Loan Forgiveness (PSLF) buyback, the news is not as great. While application processing increased, the backlog significantly increased. 72,730 Student Loan Borrowers Stuck
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IDR Processing Updates
The agency processed 304,844 applications in July 2025 – the most processed since status reports were required by a lawsuit challenging the Department of Education’s handling of IDR plans. As a result, the IDR backlog fell to 1,386,406, down from more than 1.5 million at the end of June, another low.
This marks one of the strongest single-month reductions since April, when just 79,349 applications were decided. The improvement follows months of uneven performance, in which gains made in May were erased by June’s slowdown. 72,730 Student Loan Borrowers Stuck
|
Month |
April |
May |
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 Loan Forgiveness (PSLF) buyback program also saw an increase in completed requests during July. The department processed 3,280 cases, up from 2,224 in June. However, still slightly lower than the May processing of 3,312. 72,730 Student Loan Borrowers Stuck
But unlike IDR, the PSLF buyback backlog did not shrink. Pending cases climbed to 72,730, an increase of more than 7,000 from the prior month.
Processing remains slow. Borrowers have reported wait times of ten months, far longer than the two- to three-month average seen in 2024. A small internal team handles these requests without assistance from loan servicers, limiting how many can be decided each month. 72,730 Student Loan Borrowers Stuck
While the processing gains are nice to see, a lot of effort will be needed to clear the backlog.