Borrowers submitting applications to Federal Student Aid have likely noticed that wait times seem a little long lately. In fact, there are over 800,000 borrowers waiting for a decision about an Income-Driven Repayment (IDR) plan or the Public Service Loan Forgiveness (PSLF) Buyback. Recent court documents from the Department of Education reveal a staggering backlog of applications for both programs, and the number just keeps growing.
Beyond the backlog of existing applications to process, borrowers currently on the SAVE plan will soon have to apply for new IDR plans, which could push the backlog into the millions. There are currently about seven million borrowers enrolled in SAVE, which the Department of Education has formally announced it will eliminate following an agreement to resolve a court case from the State of Missouri. The announcement did not detail exactly when borrowers would have to switch plans—other than a cryptic, “SAVE Borrowers Must Act Now”—but legal experts hypothesize that they will need to do so in the next few months. Whenever that happens, however, it’s sure to cause an enormous strain on the already struggling FSA.
If you are currently enrolled in SAVE, give us a call and we can help you find a strategy to move forward with your student loans before the backlog grows any larger. We’re always here if you have questions about your loans, or the evolving landscape of regulations. We’ll figure it out together!
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