- The U.S. Department of Education reports that there were 734,221 income-driven reimbursement (IDR) claims pending as of December 31, a sharp decrease from November.
- Loan forgiveness resumed in December, but only under the older income-based repayment plan; other plans remain on hold until at least February.
- Public Service Loan Forgiveness (PSLF) Repurchase backlogs grew again, with more than 83,000 applications on hold and being processed at a much slower pace than new demand.
In one petition filed with the court on January 14 (PDF file), the department detailed activities from December 1 through December 31, 2025, providing the clearest picture yet of how reimbursement and forgiveness systems are functioning after months of disruption due to lawsuits and a government shutdown.
The report was filed in federal court as part of a lawsuit filed by the American Federation of Teachers, which alleges widespread delays in student loan processing.
The processing of the repayment plan shows improvement
In December, the ministry and its loan managers decided on 277,131 IDR applications – more than the 245,441 decided in the previous period. This has helped reduce the current IDR backlog to 734,221 as of December 31.
That figure represents an improvement from November, when there were 802,730 applications pending, and a dramatic decline from August 2025, when the backlog exceeded 1 million.
The approval rate remained high. Of the December decisions, 242,655 applications were approved and 34,476 were rejected, an approval rate of approximately 88%.
For borrowers waiting to switch repayment plans, the data suggests that servicers are finally processing more cases than they are receiving. Comments on our videos and social media consistently highlight a processing time of 3-7 days on average.
Delays in processing PSLF buybacks worsened
As IDR processing improved, the outlook for PSLF Buyback worsened.
As of December 31, there were 83,370 PSLF redemption applications pending, compared to 80,210 at the end of November and 74,510 in August.
In December, the department received 5,090 new redemption requests, but decided on only 1,930.
Of those decisions, 1,690 were approved, 190 rejected and 50 closed due to missing information. The department cautioned that buyback approval numbers are fluid because applications can be closed and reopened later, and the database only reflects current status.
It is important to note that at this processing speed it would take 43 months to clear the backlog – or 3.5 years.
This is a reminder to really assess whether the PSLF buyback is worth it.
What this means for borrowers
For borrowers applying for IDR plans, the December report provides cautious reassurance. Processing capacity appears to be improving and backlogs are moving in the right direction. This is especially important as 7 million borrowers attempt to leave the SAVE plan in the coming months.
For public sector workers considering PSLF Buyback, the numbers raise more difficult questions. With more than 83,000 pending applications and fewer than 2,000 decided applications in December, the buyback is slow – very slow.
What comes next
The ministry said it expects technical updates in February that would allow broader IDR forgiveness (for PAYE and ICR) to resume. SAVE also ends, but the timeline remains uncertain.
For now, the December data shows progress in processing the IDR redemption plan, but regression in processing the PSLF buyback.
The end result is that in this time of tremendous change, there are still millions of borrowers facing uncertainty.
Don’t miss these other stories:
#court #filing #shows #delays #processing #student #loan #repayments