Student loan forgiveness program faces backlog of 72,730 applications
Student borrowers working toward Public Service Loan Forgiveness (PSLF) may have a way to get their debt erased sooner than expected — but the program is bogged down by delays.
The PSLF Buyback option, launched in summer 2023, allows eligible borrowers who have completed 120 months of qualifying public service employment to retroactively “buy back” months they missed toward forgiveness due to periods of forbearance or deferment. These months typically don’t count toward PSLF, but under the Buyback program, borrowers can pay for them now and receive credit toward forgiveness.
As of July 31, there were 72,730 Buyback requests pending with the Department of Education, up from 65,448 at the end of June, according to a recent court filing. Some borrowers report waiting six months or more for a response, even if they are just a few months short of qualifying.
Under PSLF, created in 2007, certain nonprofit and government employees can have their federal loans forgiven after 120 qualifying payments. The Buyback process starts with borrowers submitting a request through the PSLF Reconsideration portal in their Federal Student Aid account. The Education Department then calculates missed payments, often based on the borrower’s payment amounts before and after the non-qualifying period. Some borrowers with low incomes may owe nothing to restore those months.
Once an offer letter is received, the borrower has 90 days to pay the amount due to their loan servicer.
Advocates say the backlog stems from the labor-intensive nature of reviewing applications and a shortage of staff assigned to the program. The delays have grown since courts blocked the Biden administration’s SAVE plan in 2024, which had placed millions of borrowers into a forbearance that froze their PSLF progress.
Despite long waits, experts recommend eligible borrowers still apply for Buyback. Those needing only a few more months of credit should also explore switching to another repayment plan in the meantime. Interest on loans resumed Aug. 1 for borrowers in SAVE forbearance.
Borrowers who make extra payments after qualifying for PSLF, or who are found to have exceeded 120 payments, are entitled to refunds.
If borrowers face problems with their Buyback applications, they can file complaints through the Education Department’s feedback system or the Federal Student Aid Ombudsman. Consumer advocates also suggest contacting state attorneys general, the Consumer Financial Protection Bureau, or even members of Congress, while keeping detailed records of all communications and payments.
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