Is Student Loan Forgiveness Processing Paused? | The College Investor Podcast

As student loan borrowers brace for the full impact of the OBBBA to take effect, questions are swirling about whether forgiveness has been completely suspended across the board. Some headlines suggest that no one is getting debt relief. The reality is more complicated.

Whether student loan forgiveness is processing or not depends on the loan forgiveness program you're waiting on.

The Public Service Loan Forgiveness program is still processing applications, even as a PSLF buyback backlog grows. The Income-Based Repayment plan, or IBR, is temporarily paused for "system updates", but not due to a court order. Student loan forgiveness under SAVE, PAYE, and ICR is blocked by a federal injunction. And even disability discharge is delayed for system updates.

The fact that so many issues are arising around student loan forgiveness processing is leading many to question what's happening. Are "system updates" really happening, or is the new administration slow-walking their legal mandates to provide loan forgiveness for eligible borrowers? It's concerning a lot of borrowers.