The Department of Education has 27,000 unfinished student loans

• The significant number of student loan applications remained unprocessed.
• The shortening of staff in the department has led to a reaction to requests from borrowers.
• The increase in the number of applications is related to the resumption of payments on loans.

The U.S. Department of Education reported the emergence of over 27,000 unfinished student loans due to the shortening of more than two-thirds of its personnel. This occurred after the Trump administration significantly reduced the staff of the department, which has hindered the processing of applications from borrowers.

Along with a letter sent by Senator Elizabeth Warren on July 21, the office acknowledged issues related to federal assistance for students receiving thousands of applications daily. Among the main problems are delays in processing applications, questions about the return of funds, and fraud with financial assistance.

In July 2025, the office plans to close only three more than 1,100 applications, which has caused a backlog in Senator Warren's request regarding the continued increase in the number of unfinished cases. She also noted that the Trump administration leaves Americans without necessary support in resolving issues related to student loans.

As of the end of June 2025, when mass layoffs began in the department, there were already 16,000 unfinished applications. This figure has gradually increased, especially since the period from June to July saw an additional 11,000 new applications that remained unanswered.

The office responsible for processing applications faces difficulties due to a staff reduction from 63 to 25 people, which hinders the response to requests from borrowers. Meanwhile, the number of applications continues to rise, especially following the resumption of payments on loans after the COVID-19 pandemic.

Warren, in her letter, asked the education minister, Linda McMahon, about measures being taken to resolve this situation, as well as about plans for processing applications for programs to forgive loans, which should limit the current payments of borrowers.

Tags: USA/Politics