The ongoing federal government shutdown under the Trump administration is worsening the struggles of student loan borrowers already stuck in a massive backlog to access income-driven repayment (IDR) plans.
With more than 1 million applications pending as of mid-September, the situation has reached a critical point – and now, operations at the Department of Education have ground to a halt.
According to a spokesperson for the Education Department, Federal Student Aid (FSA) staff “will not be able to perform regular operations, including working on the IDR backlog” during the shutdown. The statement came after Congress failed to reach a funding deal, triggering the suspension of most federal operations and placing many department employees on unpaid leave.
The backlog, which already affected more than 1,076,000 borrowers as of August 31, has left many unable to switch repayment plans or make progress toward forgiveness. Michele Zampini, associate vice president of federal policy and advocacy at The Institute for College Access & Success, warned that the shutdown could deepen borrowers’ financial distress. “Even before the shutdown, borrowers were at a breaking point,” she said. “Now, with application processing reportedly at a standstill, borrowers will continue to face unaffordable payments.”
Income-driven repayment plans were first introduced in the 1990s to make student loan payments more manageable, capping them at a percentage of borrowers’ discretionary income and canceling any remaining balance after 20 to 25 years. But the shutdown has frozen progress for those trying to enter or switch plans.
Higher education expert Mark Kantrowitz explained that the staff handling the IDR applications are not classified as “essential” workers. “It is not surprising that there will be no progress on the IDR backlog during the shutdown,” he said. “But the failure to clear the backlog is disruptive to the lives of borrowers.”
Many in the backlog are reportedly trying to exit the Biden-era SAVE (Saving on a Valuable Education) plan, which a court struck down earlier this year. Borrowers were placed in a temporary SAVE forbearance while the legal challenges unfolded, but after the Trump administration began charging interest again on August 1, debt has started piling up. “Interest has been accruing on their loans, but they have been unable to switch to another plan,” Kantrowitz added.
The delays are particularly harmful for those seeking Public Service Loan Forgiveness (PSLF), which cancels debt for qualifying public sector and non-profit workers after ten years of service. Because processing is paused, borrowers currently in the backlog may not be earning credit toward forgiveness, further delaying relief.
Experts say there’s little borrowers can do right now except prepare financially and stay organized. Kantrowitz advised that borrowers “salt away the money they would have directed to their payments,” so they’re ready to pay when billing resumes. He noted that while the current waiting period likely won’t count toward forgiveness, the initial 60-day administrative forbearance following application submission does.
Carolina Rodriguez, director of the Education Debt Consumer Assistance Program, urged borrowers to keep detailed records of all communications and applications. “Our advice to borrowers is to maintain thorough records and monitor any applications submitted during this period,” Rodriguez said. “Once processing resumes, it’s important to follow up promptly to ensure their application remains on track.”
For now, the situation remains a waiting game. Until Congress restores funding and federal operations resume, over a million student loan borrowers remain trapped in limbo – accumulating interest, facing uncertainty, and waiting for the help that was promised to them.
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