89,720 PSLF Buyback Applications Are Pending — But Many Borrowers Won’t Need Them

The latest court‑ordered report shows 89,720 public service loan forgiveness (PSLF) buyback applications still waiting in the Department of Education queue. In March the agency approved a mere 3,280 requests, meaning the average applicant faces a wait of two to two‑and‑a‑half years before a decision. This sluggish pace has turned the backlog into a systemic bottleneck, especially for borrowers who are already on track to meet the 120‑payment requirement through regular monthly payments. Understanding these timelines is crucial for anyone relying on PSLF to manage student‑loan debt.

PSLF buyback lets borrowers “purchase” missed qualifying months from deferments or forbearance, potentially adding up to 24 months of credit toward the 120‑payment threshold. However, when the queue stretches 27 months, many applicants only need eight to sixteen more qualifying payments to qualify for forgiveness. As a result, a growing number of submissions are denied or closed without a decision—440 denials and 130 closures were recorded in March alone. Those denials are not failures of eligibility; they simply reflect borrowers reaching forgiveness through ordinary payments before their buyback request is reviewed.

Borrowers with pending buyback applications should run the numbers now. Count your current qualifying payments and project when you’ll hit 120 without the buyback; if that date falls within the next two‑plus years, the purchase may be unnecessary. Staying on an eligible repayment plan—such as IBR, PAYE, ICR, or the upcoming “wrap” plan launching in July—ensures payments continue to count. By monitoring the backlog and timing their applications, borrowers can avoid wasted effort and potentially lower their monthly outlay, turning a confusing policy delay into a strategic advantage.