- The U.S. Department of Education reported that there were 734,221 income-based reimbursement requests pending as of December 31, down sharply from November.
- Loan forgiveness resumed in December, but only under the older income-based repayment plan; Other plans remain on pause until at least February.
- The Public Service Loan Forgiveness (PSLF) repo backlog has risen again, with more than 83,000 applications pending and processing much slower than new ones.
The Department of Education’s latest court-ordered status update shows some progress on one front in the student loan system — and continued delays on another.
In a The court filing was filed on January 14 (PDF) The administration detailed activity from December 1 through December 31, 2025, providing the clearest picture yet of how reimbursement and relief systems will work after months of turmoil related to litigation and the 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.
Payment plan processing shows improvement
During December, the Department and its loan servicers decided 277,131 applications for IDR – more than the 245,441 applications identified during the previous period. This helped bring the number of outstanding backlog IDRs down to 734,221 as of December 31.
This number represents an improvement over November, when there were 802,730 applications pending, and a significant decrease from August 2025, when the backlog exceeded one million applications.
Approval rates remained high. Of the December decisions, 242,655 applications were approved and 34,476 were rejected, an approval rate of about 88%.
For borrowers waiting to switch repayment plans, data suggests that servicers are finally processing more cases than they are receiving. Comments on our videos and social media consistently highlight an average processing time of 3-7 days.
PSLF buyback processing delays are getting worse
While IDR processing has improved, the outlook for PSLF repurchases has become worse.
As of December 31, there were 83,370 PSLF buyback requests outstanding, up from 80,210 at the end of November and 74,510 in August.
During December, management received 5,090 new buyback requests but decided on only 1,930.
Of these decisions, 1,690 decisions were approved, 190 decisions were rejected, and 50 decisions were closed due to lack of information. Management cautioned that buyback approval numbers are volatile because orders can be closed and later reopened, and the database only reflects the current status.
It is important to note that at this processing rate, it will take 43 months to clear the backlog – or 3.5 years.
This is a reminder to evaluate whether a PSLF buyback is worth pursuing.
What does this mean for borrowers?
For borrowers applying for IDR plans, the December report offers cautious reassurance. Processing capacity appears to be improving, and the backlog is moving in the right direction. This is especially important as 7 million borrowers work to leave their savings plan in the coming months.
For public service workers considering a PSLF buyback, the numbers raise more difficult questions. With more than 83,000 pending applications and fewer than 2,000 resolved in December, the buyback process is moving very slowly.
What comes next?
The department said it expects technical updates in February that would allow IDR amnesty to resume more widely (for PAYE and ICR). Operation SAVE is also ending, but the timeline remains uncertain.
Currently, December data shows progress in IDR payment plan processing, but there are back steps in PSLF buyback processing.
The end result is that there are still millions of borrowers in limbo during this time of massive change.
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