Key Factors
- The U.S. Division of Training experiences 734,221 income-driven repayment (IDR) functions pending as of December 31, down sharply from November.
- Mortgage forgiveness resumed in December, however solely below the older Earnings-Primarily based Compensation plan; different plans stay paused till not less than February.
- Public Service Loan Forgiveness (PSLF) Buyback backlogs grew once more, with greater than 83,000 functions ready and processing far slower than new demand.
The Training Division’s newest court-ordered standing replace reveals some progress on one entrance of the coed mortgage system — and continued delays on one other.
In a court filing submitted January 14 (PDF File), the division detailed exercise from December 1 via December 31, 2025, providing the clearest image but of how reimbursement and forgiveness techniques are functioning after months of disruption tied to litigation and a government shutdown.
The report was filed in federal courtroom as a part of a lawsuit brought by the American Federation of Teachers, which alleges widespread delays in pupil mortgage processing.
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Compensation Plan Processing Reveals Enchancment
Throughout December, the Division and its mortgage servicers determined 277,131 IDR functions — greater than the 245,441 decided during the last period. That helped drive the pending IDR backlog all the way down to 734,221 as of December 31.
That determine represents an enchancment from November, when 802,730 functions have been pending, and a dramatic discount from August 2025, when the backlog exceeded 1 million.
Approval charges remained excessive. Of the December choices, 242,655 functions have been authorized and 34,476 have been denied, an approval price of about 88%.
For debtors ready to change reimbursement plans, the information suggests servicers are lastly processing extra circumstances than they’re receiving. Feedback on our videos and social media regularly spotlight a couple of 3-7 day processing time on common.
PSLF Buyback Processing Delays Obtained Worse
Whereas IDR processing improved, the outlook for PSLF Buyback obtained worse.
As of December 31, 83,370 PSLF Buyback functions have been pending, up from 80,210 on the finish of November and 74,510 in August.
Throughout December, the division acquired 5,090 new Buyback requests however determined just one,930.
Of these choices, 1,690 have been authorized, 190 denied, and 50 closed as a result of lacking info. The division cautioned that Buyback approval figures are fluid, as a result of functions will be closed and later reopened, and the database displays solely present standing.
It is necessary to notice that at this processing price, it could take 43 months to clear the backlog – or 3.5 years.
This can be a reminder to actually assess if PSLF buyback is worth pursuing.
What This Means For Debtors
For debtors making use of for IDR plans, December’s report presents cautious reassurance. Processing capability seems to be bettering, and backlogs are transferring in the precise path. That is particularly necessary as 7 million borrowers work to leave the SAVE plan in the coming months.
For public service employees contemplating PSLF Buyback, the numbers increase tougher questions. With greater than 83,000 functions pending and fewer than 2,000 determined in December, Buyback is transferring slowly – very slowly.
What Comes Subsequent
The Division stated it expects technical updates in February that might enable broader IDR forgiveness (for PAYE and ICR) to renew. SAVE is also ending, however the timeline stays unsure.
For now, the December knowledge reveals progress on IDR reimbursement plan processing, however backsteps on PSLF buyback processing.
The tip result’s there are nonetheless hundreds of thousands of debtors in limbo throughout this time of large change.
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Editor: Colin Graves
The publish New Court Filing: Student Loan Processing Delays Continue appeared first on The College Investor.
