Data Error Shows Slow Progress Toward IDR Application Backlog Processing
By Hugh T. Ferguson, NASFAA Managing Editor
The Department of Education (ED) reduced its backlog of pending income-driven repayment (IDR) applications by roughly 4% over the past month, with nearly 1.6 million applications still pending as of May 31.
According to a legal document containing monthly IDR processing data, which ED agreed to publish as part of an ongoing lawsuit with the American Federation of Teachers (AFT), May’s report, which covered the period from April 1 to April 30, overstated the number of pending IDR applications by nearly 336,000. ED attributed this miscalculation to a servicer reporting error. Consequently, the corrected initial IDR backlog from May’s report was 1,649,874. The current total backlog, as detailed in June’s report (encompassing applications from May 1 to May 31), now stands at 1,582,641.
While ED made headway in the number of “decided” applications — those that were either approved or denied — during May, there is still considerable ground to cover as new applications continue to be submitted. The existing backlog may also be exacerbated by the recent news from ED servicer MOHELA that IDR applications filed before April 27, 2025, cannot be processed and will need to be refiled.
“The uncertainty surrounding the IDR backlog processing is concerning,” stated Megan Walter, senior policy analyst at NASFAA. “This confusion is amplified because we don't know the actual approval and denial rates within the 'decided’ application number. What’s more, the news that certain applications must now be refiled will inevitably create immense confusion for borrowers and threaten to inflate the staggering backlog further.”
In a slight variance from guidance issued by MOHELA, an ED official has clarified that borrowers should have filed their IDR applications using their federal tax information (FTI). If FTI was not used, the application has not been processed. ED advises borrowers to reapply using FTI rather than waiting for their servicer to process a non-FTI application, as the time frame for such processing remains unclear. Borrowers have also been advised to file applications on studentaid.gov for faster processing.
ED’s third status report is due mid-July.
Publication Date: 6/20/2025
David S | 6/20/2025 9:55:13 AM
It's almost as though the massive reduction in ED's workforce is slowing down operations and reducing the level of service they can provide to Americans who need their assistance.
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