Loan Relief for Students: A Slow and Uncertain Journey

The Department of Education has a massive backlog of student loan applications. As of November 30, 802, 730 applications for income-driven repayment (IDR) plans are still pending. This delay is causing stress for many borrowers. In November, the department approved loan discharges for 170 borrowers on IDR plans and 280 borrowers under the Public Service Loan Forgiveness (PSLF) program. These discharges came after a lawsuit by the American Federation of Teachers accused the department of delaying processing and denying relief. The department has promised to work through the backlog, but the pace of progress is unclear. Borrowers are left in limbo, unsure when they might see relief.Big changes are coming in 2026. The department plans to implement new repayment plans, borrowing limits, and changes to PSLF eligibility. However, these changes also bring uncertainty and potential financial burdens. A tax provision that made student-loan forgiveness tax-free is set to expire in January 2026. This means borrowers who reach their payment threshold in 2026 could face significant tax bills. The department has confirmed that borrowers who reached their threshold before 2026 but haven't had their discharge approved will not face taxes. Many borrowers are anxious about higher payments and the uncertainty of the upcoming changes. Jennifer Oakes, a 41-year-old borrower, expressed her concerns, stating that the lack of clear information is causing stress.