Student loan borrowers in the United States could wait up to two years for their applications to be approved for income-driven repayment plans, according to new data from the U.S. Department of Education.
The agency is currently managing a backlog of nearly 2 million pending applications, creating significant delays for borrowers seeking more affordable payment options.
This backlog comes as millions of Americans carry outstanding student loan debt totaling $1.5 trillion nationwide. The processing delays risk pushing borrowers into financial hardship and increasing default rates, underscoring the urgent need for improved handling of repayment plans.
Massive Backlog Stalls Income-Driven Repayment Approvals
As of the end of April, the Department of Education reported more than 1.98 million income-driven repayment (IDR) plan applications awaiting review. In the same period, only 79,000 applications were processed either through approval or denial.
If the department continues at this pace, it would take over two years to clear the current queue, according to the Student Borrower Protection Center.
The backlog has been attributed in part to administrative changes following the transition from the Biden to the Trump administration. The Trump Education Department reinstated online applications in March after a court blocked the Biden administration’s original SAVE (Saving on a Valuable Education) IDR plan.
Meanwhile, staffing cuts during Trump’s early second term reduced the department’s capacity, contributing to slower processing times.
Critics highlight the severe impact on borrowers, with nearly 10 million people at risk of defaulting on their loans in the coming months. The department denies responsibility for the backlog, blaming the previous administration for failing to process applications efficiently and claiming it artificially masked rising delinquency rates.
Financial Strain Grows as Delays Prolong Uncertainty
For millions of borrowers, the delay in repayment plan decisions translates directly into financial strain.
According to Alex Beene, a financial literacy instructor, “Nearly two million borrowers who applied for income-driven repayment plans are effectively stuck in limbo while they wait to see if they’ll be approved or denied.” The backlog prevents many from securing lower monthly payments, potentially forcing them into default or missed payments on other debts.
Kevin Thompson, CEO of 9i Capital Group, warns the delays may cause a domino effect on personal finances and the broader economy.
“Without that relief, a big chunk of their paycheck could be taken to cover loans; money they need for rent, food, or other bills,” he said. Prolonged uncertainty may lead borrowers to fall behind on credit cards or other financial obligations, increasing defaults and economic pressure.
The Department of Education has pledged to work with loan servicers to reduce the backlog but offers no clear timeline beyond optimistic hopes to clear the queue in the next few months. Until then, many borrowers face difficult choices with limited support.
