PSLF buyback backlog increased to 89,720 pending applications in March, according to latest Court Ordered Status Report (PDF file) Filed today. The Education Department took decisions on only 3,280 applications during the month.
At that rate, borrowers at the back of the queue face a wait of more than two years. But here’s the part that isn’t getting enough attention: A significant portion of these applications will likely be denied or closed – not because borrowers don’t qualify, but because they will exhaust PSLF in the normal way before their buyback application is processed.
Rejections due to PSLF buyback backlog will be: PSLF buyback allows borrowers to “buy back” the months they missed due to certain deferments and forbearances, which are counted toward their 120 eligible payments. Most buyback applicants are looking to recover the period of time spent in SAVE forbearance – which could be 24 months or even more if they remain in the SAVE prohibition to the end.
The math problem is straightforward: If it takes 27 months to clear the buyback queue and you only need 8 to 16 more eligible payments, you will have received 120 payments through normal monthly payments before the Department gets to your application. When this happens, you receive PSLF waiver in the standard manner and your buyback application is closed or rejected as controversial.
This is not an imaginary thing. Some borrowers who filed buyback applications in late 2024 and early 2025 are making eligible payments while they wait. Many of those borrowers themselves are approaching or have already passed the 120-payment threshold.
This creates an unusual situation: the backlog may be partially resolved through denials and closures rather than faster processing. And this may not be the best outcome for borrowers, as many borrowers face paying more today than they have paid in the past two years.
The rising denial rate points to this trend. In March, 440 buyback applications were rejected and 130 were closed without a decision. Although the Department does not disclose the reasons for denial, it is time for early applicants to get to the front of the line and learn that they no longer need a buyback.
What this means for borrowers: If you have a pending PSLF buyback application, run the number. Calculate your current qualifying payments and estimate when you will reach 120 without a buyback. If the answer is before the estimated queue wait, you will not need a buyback at all. In that case, make sure you are on an eligible repayment plan (IBR, PAYE, ICR, or the upcoming RAP plan) and keep making monthly payments while you wait.
How it connects: We’ve been tracking the PSLF buyback backlog since court-ordered reporting began. Last month we had told that the queue could mean a wait of three years for public servants. We also covered whether the PSLF buyback is worth it given the rising costs and processing delays, and why borrowers may want to switch to an active repayment plan rather than waiting patiently.
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