A new federal court filing (PDF File) shows that borrowers seeking Public Service Loan Forgiveness (PSLF) credit through the buyback process could face waits approaching three years under current processing speeds.

The latest status report from the U.S. Department of Education reveals that 86,520 PSLF Buyback applications were still pending as of January 31, 2026. During January, only 2,430 buyback applications were decided.

At that pace (and assuming no new applications were submitted) clearing the existing backlog alone would take roughly 35 months. In reality, new requests continue to arrive each month and processing times have varied month-to-month – meaning the wait time could be longer.

For public service workers who have already reached or are near 120 qualifying payments, the numbers suggest a long period of uncertainty.

PSLF Buyback Backlog By The Numbers

The Department’s January 2026 data shows that 5,030 PSLF Buyback applications received during the month and 2,430 applications decided (up from deciding 1,930 last month).

• 1,980 approved
• 360 denied
• 90 closed without decision due to missing information

As of the end of January 2026, 86,520 applications remained pending. This is an increase from 83,370 in December.

Even though 1,980 approvals were issued in January, incoming applications exceeded decisions. The pending total remains elevated.

At 2,430 decisions per month, dividing 86,520 pending cases by the current pace yields approximately 35.6 months – just shy of three years. That estimate assumes processing does not slow and that new filings do not add to the backlog.

Separate from buyback, 18,160 PSLF discharges were processed in January. However, these borrowers went through the “normal” PSLF process and were not necessarily seeking buyback.

How PSLF Buyback Is Calculated

PSLF buyback is designed to “buy back” months that did not count toward the 120-payment requirement due to being in a qualified deferment or forbearance period. The amount a borrower must pay depends largely on how long the deferment or forbearance lasted and what repayment plan would have applied during that time.

If the pause lasted less than 12 months, the Department generally looks at the lowest legally available income-driven repayment (IDR) plan before and after the pause and uses the lower monthly payment amount to calculate the buyback. Because SAVE is no longer considered a legally available repayment plan, it is not used in the calculation. Instead, REPAYE has been used.

If the pause lasted 12 months or longer, borrowers must provide tax returns and family size information for each calendar year involved. The Department then estimates what the borrower’s payment would have been under the lowest available IDR plan during each year, based on income and household size. If the standard 10-year repayment amount would have been lower than the calculated IDR payment, the Department uses the standard amount instead.

For any borrowers still in SAVE Forbearance, that means a period under REPAYE, and the current period under IBR.

Borrowers who were not enrolled in an IDR plan before or after the pause must still provide income documentation. Without tax records or proof that no tax filing was required, the Department defaults to the 10-year Standard Repayment Plan, which may increase the total buyback cost.

Here’s a full guide to How PSLF Buyback Is Calculated.

What Borrowers Can Do Now

While the status report reflects aggregate data, borrowers awaiting buyback decisions can take practical steps:

1. Confirm qualifying payment counts. Ensure employment certifications are up to date and accurately reflected.
2. Respond quickly to documentation requests. 90 buyback applications in January were closed without decision due to missing information.
3. If you’re in forbearance, resume payments. Getting back on a repayment plan and simply working may be a faster course of actions.

Borrowers currently in forbearance may want to switch to an active repayment plan and simply finish PSLF “the normal way” and not deal with buyback. The monetary saving may be zero or minimal, but the time savings may be huge. 

Don’t Miss These Other Stories: