Part of the federal student-loan portfolio will soon move to the Treasury Department while millions of borrowers prepare for repayment changes.

In an ominous sign for student loan borrowers, the Education Department published new data indicating that backlogs for repayment plans and loan forgiveness are ongoing.

More than half a million federal student loan borrowers remain in a backlog of applications for an affordable repayment plan, a court filing revealed.

Many borrowers have already met the requirements for loan forgiveness under income‑driven repayment (IDR) plans.

Some types of student loan forgiveness will be taxed again after five years of being tax-free. The change will impact borrowers in income-driven repayment plans who have their debts canceled as a result of making a certain number of qualifying monthly payments.

President Trump signed an executive order for changes to the PSLF program in March 2025. They impact who qualifies for forgiveness and go into effect July 1, 2026.

A major deadline for certain federal student loans is only two weeks away, and failing to act could be a costly mistake for hundreds of thousands of borrowers.

You may be surprised to see that your student loan balance is higher than the amount you originally borrowed, even if you've made on-time payments and haven't taken out more loans