When a government shutdown hits, the headlines focus on politics. But for borrowers, the real question is: How does this affect my student loans?
The short answer: your loan payments and current repayment plan don’t disappear. But if you’re waiting on applications to be processed, things are likely about to slow down even more. Here’s what you need to know.
1. Income-Driven Repayment (IDR) Applications Backlog
Already, more than 1.38 million IDR applications remain pending as of July 31, despite the Department of Education processing over 300,000 in July alone.
Much of the IDR process is automated, which gives us some hope that the impact won’t be catastrophic. But with fewer government staff to provide oversight, expect response times to drag.
2. PSLF Forgiveness and PSLF Buyback Delays
Public Service Loan Forgiveness (PSLF) is still highly manual when it comes to the actual forgiving of the loans since it requires a person to review and approve every application. The PSLF Buyback program is the same. That said, the PSLF Help tool to certify your employer will likely be minimally impacted, if at all by the shutdown.
As of July 31, there were over 72,000 PSLF buyback requests pending and only 3,280 processed that month. With the shutdown, those wait times will stretch even longer.
3. Loan Consolidation Applications
If you’re trying to consolidate, know this: consolidation is also manual. That means fewer staff equals longer wait times. Borrowers should expect significant delays in consolidations during the shutdown.
Becoming Humbly Wealthy Amid Delays
At Humble Wealth, we remind clients that true wealth isn’t about timelines the government sets, it’s about how you respond when the unexpected happens.
You can’t control when your PSLF forgiveness is approved.
You can’t control how long consolidation takes.
You can control how you plan, prepare, and keep perspective.
That’s what it means to pursue “humble wealth”—staying patient, documenting every step, and keeping your focus on family, purpose, and presence instead of timelines you can’t speed up.
What You Can Do Now