The US Department of Education processed 186,731 IDR applications in June, a sharp decline from May’s 285,694. The slowdown raises concerns about the agency’s capacity to handle the growing number of student loan applications.
More than 1.5 million IDR borrowers remain in limbo, while 65,448 PSLF buyback requests are pending. A recent Supreme Court ruling has cleared the way for staff layoffs and upcoming repayment changes, which may worsen delays.
The IDR backlog stood at 1,511,504 at the end of June, a slight improvement from May’s figure but a sign that the agency is struggling to keep up with demand. The slowdown in June suggests that the Department may not have enough staff or resources to manage the current volume of applications.
Borrowers who submitted applications selecting the “SAVE” or “Select The Lowest Repayment Plan Option” cannot be processed due to court rulings, and some are being forced to resubmit their applications. This has led to increased frustration among borrowers.
The PSLF buyback program also faces delays, with only 2,224 requests completed in June and 65,448 pending. Borrowers are reporting timelines of 8-9 months for a response, and the lack of transparency from the Department is exacerbating the issue.
A recent Supreme Court ruling allowing the Trump administration to proceed with planned layoffs across the Department of Education may further strain processing capacity. The agency has not disclosed how these changes will affect loan servicing, but borrowers and advocates worry about longer wait times and growing confusion.
Source: https://thecollegeinvestor.com/61116/latest-ed-report-1-5m-idr-applications-still-pending