- The Division of Schooling elevated processing of Revenue-Pushed Reimbursement purposes in July, reducing the backlog by greater than 100,000.
- Public Service Mortgage Forgiveness buyback processing additionally rose, however the backlog continued to develop amid excessive utility quantity.
- Considerations stay concerning the Division’s capability to handle workloads as layoffs loom and compensation modifications method.
The Division of Schooling reported a significant improve in processing Revenue-Pushed Reimbursement (IDR) purposes in July, in accordance with the newest standing report (PDF File).Â
The company processed 304,844 purposes, up from 186,731 in June. Consequently, the IDR backlog fell to 1,386,406, down from greater than 1.5 million on the finish of June. It is also seemingly that the backlog drop consists of a few of the SAVE plan purposes which might be slated to be cancelled.
The backlog discount for IDR purposes will seemingly be welcome information to debtors ready for selections on compensation plans that might decrease month-to-month funds or result in eventual mortgage forgiveness.
Nonetheless, for debtors ready for Public Service Mortgage Forgiveness (PSLF) buyback, the information just isn’t as nice. Whereas utility processing elevated, the backlog considerably elevated.
IDR Processing Updates
The company processed 304,844 purposes in July 2025 – essentially the most processed since standing reviews had been required by a lawsuit difficult the Division of Schooling’s dealing with of IDR plans. Consequently, the IDR backlog fell to 1,386,406, down from greater than 1.5 million on the finish of June, one other low.
This marks one of many strongest single-month reductions since April, when simply 79,349 purposes had been determined. The development follows months of uneven efficiency, wherein beneficial properties made in Might had been erased by June’s slowdown.
PSLF Buyback Requests Rise
The Public Service Mortgage Forgiveness (PSLF) buyback program additionally noticed a rise in accomplished requests throughout July. The Division processed 3,280 circumstances, up from 2,224 in June. Nonetheless, nonetheless barely decrease than the Might processing of three,312.
However not like IDR, the PSLF buyback backlog didn’t shrink. Pending circumstances climbed to 72,730, a rise of greater than 7,000 from the prior month.Â
Processing stays gradual. Debtors have reported wait instances of ten months, far longer than the two- to three-month common seen in 2024. A small inside staff handles these requests with out help from mortgage servicers, limiting what number of will be determined every month.
Whereas the processing beneficial properties are good to see, a number of effort will probably be wanted to clear the backlog.
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PSLF Buyback Processing Backlog |
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Staffing Adjustments And Future Processing
The July report comes because the Division prepares for important modifications in staffing and compensation applications. A Supreme Court docket determination earlier this yr cleared the best way for deliberate layoffs, a part of a broader restructuring below the Trump administration. The reductions are anticipated to affect all workload related to mortgage forgiveness.
On the similar time, the Division is getting ready for the top of the SAVE plan and the launch of the Reimbursement Help Plan (RAP) in 2026. Debtors at present in forbearance below SAVE could wish to swap to different compensation choices within the coming months, including to the processing burden.
Whereas the July numbers for IDR are encouraging, they solely symbolize a single month’s information (simply July 2025). If employees reductions proceed as deliberate, sustaining or enhancing this tempo could show difficult.
For PSLF buyback candidates, the rising backlog means that with out extra assets, even incremental beneficial properties in processing pace will not be sufficient to maintain up with demand.
What Debtors Want To Watch
Debtors ready on IDR purposes or PSLF buyback requests ought to monitor the Division’s month-to-month reviews to trace modifications in processing charges and backlog measurement.Â
Public service employees pursuing PSLF buyback needs to be ready for lengthy wait instances and hold documentation of qualifying employment and fee historical past. For debtors who’re lower than 10 funds away from the 120 mark, it may make sense to modify plans to an energetic compensation plan and pursue PSLF the “quaint method” of merely getting qualifying funds.
With the Division balancing a excessive workload, diminished staffing, and upcoming coverage modifications, debtors may face shifting timelines within the months forward. The most recent figures present that progress is going on but in addition that enhancements in a single space don’t assure quicker outcomes throughout all applications.
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