Student loan borrowers in public service are facing roadblocks to debt relief, reports show

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Thousands of student loan borrowers working toward Public Service Loan Forgiveness (PSLF) are waiting for updates on their loan forgiveness.

Nonprofit and government workers who otherwise qualify for PSLF are facing months-long waiting periods under the PSLF Buyback program, which allows borrowers to buy back months (toward their 120 total monthly payments) that didn't have qualifying payments due to deferment or forbearance.

At the same time, some borrowers aren't seeing updated payment counts after making their last required payment toward the forgiveness program. A recent Business Insider report cited one borrower's Federal Student Aid dashboard, noting that payment counts "have been temporarily paused due to data issues causing count fluctuations."

The resulting limbo is leaving many otherwise-eligible PSLF borrowers without a resolution about their loan forgiveness.

Eligible government and nonprofit workers can qualify for Public Service Loan Forgiveness after working full-time for a qualifying employer for at least 10 years and making 120 monthly student loan payments under a qualifying plan.

The PSLF Buyback program, launched in 2023, helps borrowers who have met the employment requirement for PSLF "buy back" the months their loans were in eligible deferment or forbearance.

With the buyback, those borrowers can also meet the loan repayment requirement for PSLF and qualify for loan forgiveness.

To qualify, applicants must have already worked 120 months (10 years) of eligible employment before applying, and the certified eligible employment must include the months they want to buy back. Only Direct Loans are eligible under the program.

Additionally, borrowers won't be able to buy back months for loans enrolled in the two new repayment plans introduced earlier this year — the Repayment Assistance Plan or Tiered Standard Plan. These are the only two repayment options for new borrowers after July 1, 2026.

After applying, applicants must continue to make student loan payments under qualifying payment plans until their PSLF Buyback is approved. Eligible borrowers will receive a PSLF Buyback Agreement when they're approved and must pay the required amount specified in that agreement within 90 days.

As of April 30 this year, there were 88,000 PSLF Buyback applications pending, according to the Department of Education. The Department says that it includes an estimated 18,000 duplicates. Even so, that still leaves 70,000 pending applications.

According to court filings in an ongoing lawsuit by the American Federation of Teachers against the Department of Education, progress in deciding PSLF Buyback applications has been inconsistent. Here's a snapshot of the first few months of 2026:

January 2026: 2,430 applications decided; 1,980 approved

February 2026: 2,520 applications decided; 2,040 approved

March 2026: 3,280 applications decided; 2,710 approved

April 2026: 6,870 applications decided; 6,600 approved

Between January and April, the number of pending PSLF Buyback applications also increased from 86,520 to 88,000 as the Department continued to receive new applications.

What PSLF Buyback applicants should know

Those awaiting a decision on their PSLF Buyback may continue to face a lengthy holding period.

The Federal Student Aid site doesn't indicate when PSLF Buyback applicants will find out whether they're approved.

"We expect that many people will request buyback, and each account review will need in-depth analysis," the site reads. "You won't be able to check the status of your request, but we will respond to your request by email as soon as possible."

In the meantime, it's important to continue making student loan payments until your application is no longer under review and your buyback is approved.

If the payments you make during this time exceed the required buyback amount in your PSLF Buyback Agreement, you receive after approval (and you have no additional loans), you can get the excess payments refunded.

According to the Federal Student Aid site, you can also contact your student loan service to ask about the status of your application.

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