Hundreds of thousands of student loan borrowers are stuck in limbo as application delays for repayment and forgiveness programs grow, prompting a new push from U.S. Sen. Kirsten Gillibrand for federal action.
Gillibrand announced Tuesday that she is pressing the Trump administration to address a backlog affecting more than 640,000 borrowers nationwide who are waiting for decisions on Income-Driven Repayment and Public Service Loan Forgiveness applications.
The delays are forcing borrowers to remain in financial uncertainty as interest continues to accumulate on their loans, potentially increasing debt even as they await relief. Gillibrand warned the backlog could push some borrowers into default, adding further strain for families already facing higher costs of living.
The New York Democrat said she is calling on U.S. Education Secretary Linda McMahon to develop a plan to clear the backlog and provide answers about how delays are impacting borrowers in New York.
The issue carries significant weight in the state, where more than 2.4 million residents hold student loan debt totaling nearly $100 billion. On average, borrowers in New York owe about $40,000.
The backlog follows the federal government’s decision earlier this year to end the Saving on a Valuable Education plan, which had allowed many borrowers to reduce monthly payments. Officials say the change is expected to drive more borrowers to apply for alternative repayment plans, adding pressure to an already strained system.
Gillibrand said resolving the delays is critical as borrowers face mounting financial pressures, arguing that prolonged processing times are worsening an already challenging situation.
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