New Court Filing: Student Loan Processing Delays Continue

The Education Department’s latest court-ordered status update shows some progress on one front of the student loan system — and continued delays on another.

In a court filing submitted January 14 (PDF File), the department detailed activity from December 1 through December 31, 2025, offering the clearest picture yet of how repayment and forgiveness systems are functioning after months of disruption tied to litigation and a government shutdown.

The report was filed in federal court as part of a lawsuit brought by the American Federation of Teachers, which alleges widespread delays in student loan processing.