More than 643,000 federal student loan borrowers are waiting for relief or a new repayment plan, according to a recent court filing that reflects the backlog at the U.S. Department of Education as of the end of March. The delay affects borrowers seeking income-driven plans as well as those pursuing the Public Service Loan Forgiveness buyback option — and it comes as millions face looming changes to the Biden-era SAVE plan.
Federal officials reported that roughly 554,000 applicants were awaiting decisions on **income-driven repayment (IDR)** requests at the end of March, with an additional 89,720 borrowers waiting on decisions tied to the **Public Service Loan Forgiveness (PSLF) buyback** program. Those stalled applications could prolong monthly payments or slow the path to debt cancellation for nonprofit and government workers.
What the backlog looks like
The department has reduced the overall queue for IDR compared with last summer, but progress is uneven and certain relief tracks remain clogged.
- IDR pending: About 553,966 borrowers awaiting enrollment in income-driven plans as of March.
- PSLF buyback pending: Around 89,720 applicants still in the pipeline for retroactive credit toward forgiveness.
- Recent cancellations: The department discharged roughly 21,200 loans in March under IDR rules, after processing pauses earlier in the year.
Income-driven plans cap monthly payments at a share of a borrower’s discretionary income and forgive remaining balances after typically 20 or 25 years. The PSLF program, created in 2007, cancels balances after a decade for qualifying public-service employees. The buyback option — introduced under the Biden administration — lets some borrowers purchase credit for months previously excluded because of forbearance or deferment, accelerating eligibility for forgiveness.
Mixed progress, persistent choke points
Agency filings show the Education Department has resolved many outstanding IDR requests since last summer: pending IDR cases numbered nearly 1.4 million in July but had fallen to about 576,600 in February. Still, the queue for PSLF buybacks has inched higher — more than 88,000 borrowers were waiting in February, up from about 80,210 in November.
That divergence matters because borrowers relying on PSLF often have limited margin for error: retroactive credit can be decisive for people working in low-paying public-sector roles who depend on forgiveness after 120 qualifying payments.
At the same time, analysts warn the backlog could worsen as the Education Department moves forward with a deadline for many borrowers to leave the SAVE plan, a change that may trigger a surge of new enrollment or appeals.
Experts tracking the sector say the timing is crucial. An analysis of government data by higher-education commentator Mark Kantrowitz found roughly 9 million borrowers were in default as of December. Meanwhile, a recent survey by the Institute for College Access & Success and Data for Progress reported that about 42% of federal borrowers say their monthly student loan payments make it harder to afford essentials like food and housing.
What borrowers should watch
- Check application status regularly through your loan servicer and the Department of Education’s online tools.
- Document qualifying employment and payments if pursuing **PSLF**; the buyback option can require retroactive verification.
- Expect processing times to fluctuate as the department implements SAVE-related deadlines and responds to court-ordered reporting.
The department’s recent actions reduced some IDR backlogs and resulted in debt cancellations in March, but unresolved PSLF buyback cases and the potential for an influx of new requests mean many borrowers will continue to wait for months. The Education Department did not immediately respond to a request for comment on the court filing and current processing timelines.
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Jordan Keller specializes in analyzing the US financial markets. With concrete recommendations, he helps you secure and boost your investments by providing strategies that adapt to market fluctuations.