Student loan borrowers seeking quicker forgiveness under the Public Service Loan Forgiveness (PSLF) program are facing significant delays, with over 72,000 applications waiting to be processed. The PSLF Buyback initiative, which allows public sector workers to retroactively count missed payments towards loan forgiveness, has become increasingly difficult to navigate as a backlog continues to grow.
Launched in 2023, the PSLF Buyback program provides eligible borrowers with an opportunity to accelerate their path to loan cancellation by crediting past payments that were missed due to forbearance or deferment. However, the processing of these requests has faced substantial delays, leaving many borrowers in limbo as they await updates from the Department of Education.
A Rising Backlog Threatens Borrowers’ Progress
As of July 31, 2025, the backlog of pending applications for the PSLF Buyback program has risen to 72,730 requests, a significant increase from the previous month’s figure of 65,448. According to a report from CNBC, many borrowers have been waiting for several months to receive confirmation of their eligibility and the necessary steps to finalize their loan forgiveness. Some individuals, who are close to meeting the required 120 payments for loan cancellation, are particularly frustrated by the lengthy waiting times.
The bottleneck is partly attributed to the labor-intensive process involved in reviewing each application, which can be complicated by discrepancies in payment histories and the intricacies of borrowers’ service records. Experts suggest that limited resources at the Department of Education are further exacerbating the delay. Nancy Nierman, an assistant director at the Education Debt Consumer Assistance Program, highlighted the lack of dedicated staff to manage the growing volume of requests, making the situation even more challenging for borrowers.
What Borrowers Need to Know About PSLF Buyback
The PSLF Buyback program offers eligible borrowers the opportunity to have months missed due to forbearance or deferment counted towards their 120 qualifying payments for loan forgiveness. Those who are eligible can apply through the PSLF Reconsideration portal, where they will receive an offer letter detailing the missed months and a payment plan to buy back those months.
Despite the processing delays, experts urge that there is no harm in applying for the PSLF Buyback. “if you are eligible for the Buyback, there’s no harm in submitting the application,” said Nierman. However, borrowers are advised not to rely solely on this program if they are close to forgiveness. It may be beneficial to explore other repayment options while waiting for the Department of Education to process the application.
