PSLF Buyback Backlog Reaches 74,510 as Borrowers Face Delays and Renewed Interest
WASHINGTON – A backlog of 74,510 applications is now hindering the Public Service Loan Forgiveness (PSLF) Buyback program,leaving many eligible borrowers facing continued delays in receiving loan forgiveness despite years of qualifying public service. The program, designed to offer relief to those who have dedicated a decade to public service, has been plagued by issues stemming from a freeze in progress during the pandemic payment pause and subsequent administrative challenges.
the buyback program addresses past errors in PSLF management, offering borrowers the chance to receive credit for previously non-qualifying payments. Though, progress stalled throughout the payment pause, even as borrowers continued working in eligible public service roles. The situation has been exacerbated by a significant reduction in staff at the Education Department under the previous administration. in March, Trump officials terminated nearly half of the department’s staff, including many responsible for assisting borrowers navigating the PSLF process.
Despite the delays, experts urge eligible borrowers to apply. “If you are eligible, there’s no harm in submitting the application,” said Nancy Nierman, assistant director of the Education Debt Consumer Assistance Program in New York. “But if you can afford payments in other repayment plans, don’t rely solely on the Buyback to get you to 120 qualifying payments, particularly if you only need a few months of credit to reach forgiveness.”
Borrowers can concurrently apply for Buyback and submit paperwork to switch into choice repayment plans, though a separate backlog of over one million repayment plan applications currently exists within the department, according to court records. While borrowers were able to remain in the SAVE forbearance plan, interest on federal student loans resumed accruing in August.
Mark Kantrowitz, a higher education expert, notes that borrowers who continue making payments after applying for Buyback, or who are found to have already exceeded the 120 qualifying payment requirement, are entitled to a refund from the government. He reports receiving accounts from individuals who have successfully received such refunds.
Applying for PSLF Buyback
The Buyback application is available through the PSLF Reconsideration portal on the Federal Student Aid account website:
