PSLF Buyback Delays: Timeline & Updates
Delays and latest updates in the PSLF Buyback program for student loan borrowers.
1What is the PSLF Buyback Program?
The Public Service Loan Forgiveness (PSLF) Buyback program allows borrowers to buy back periods of deferment or forbearance, counting them toward the 120 payments needed for forgiveness. The program gained popularity due to the SAVE forbearance plan but faces significant delays due to high demand. As of April 2026, approximately 88,000 applications were pending.
2Application Statistics and Delays
April 2026 marked the first month since court-ordered reporting began where processed applications outpaced new ones: 6,870 applications were processed against 4,790 received, with a 96% approval rate. However, borrowers who applied in December 2024 are still waiting as of August 2026, with average processing times ranging from 20 to 24 months.
3Court Order and Transparency
The American Federation of Teachers sued the Department of Education over delays in income-driven repayment (IDR) and PSLF processing. The court ruling mandated the Department to file monthly status reports with the federal court, detailing the number of IDR and Buyback applications received, processed, approved, and denied. These reports provide transparency into the application process.
4Approval Rates and Trends
In April 2026, 96% of Buyback applications were approved, up from 81% in February 2026. This increase indicates that the Department is prioritizing eligible applications. However, some applications were denied because borrowers reached 120 payments while waiting, rendering their Buyback requests moot.
5How Does PSLF Buyback Work?
PSLF Buyback allows borrowers to make lump-sum payments for periods of forbearance. Applications are submitted through PSLF Reconsideration, and borrowers must pay an amount equivalent to what they would have owed under an Income-Driven Repayment (IDR) plan. Payments must be completed within 90 days of approval.
6Application Process and Stages
The application process consists of five stages: submission, manual eligibility check by Federal Student Aid, issuance of the buyback agreement, a 90-day payment window, and final processing. The longest delays occur in the second stage, with average processing times ranging from 20 to 24 months.
7Impact of Delays on Borrowers
Borrowers waiting for their applications to be processed must continue making payments. These payments can still count toward PSLF if made under a qualifying plan. If forgiveness is granted later, payments made during the waiting period may be refunded, affecting borrowers' financial planning.
8Future Expectations and Solutions
The Department plans to identify and remove duplicate applications upfront to speed up the process. If the record processing pace of April 2026 continues, the current backlog could be cleared in 10 to 13 months. However, borrowers nearing 120 payments may find it more advantageous to continue regular payments rather than waiting for Buyback approval.