Story perspectives

Backlog Leaves 2 Million Student Loan Borrowers in Limbo

5/20/2025

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Summary

Story summary

Nearly 2 million student-loan borrowers are waiting for income-driven repayment applications to be processed as of April 30.
Only 79,000 applications were processed in April, leading to a significant backlog under the Biden administration.
Borrowers are in forbearance while awaiting new payment calculations, with some accruing interest.
The American Federation of Teachers criticized the backlog, which affects borrowers' loan forgiveness eligibility.
The Trump administration has restarted collections on defaulted loans after a five-year hiatus.

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Story summary

Nearly 2 million student-loan borrowers are waiting for income-driven repayment applications to be processed as of April 30.
Only 79,000 applications were processed in April, leading to a significant backlog under the Biden administration.
Borrowers are in forbearance while awaiting new payment calculations, with some accruing interest.
The American Federation of Teachers criticized the backlog, which affects borrowers' loan forgiveness eligibility.
The Trump administration has restarted collections on defaulted loans after a five-year hiatus.