The PSLF Buyback backlog grew to 89,720 pending applications in March, according to the latest court-ordered status report (PDF File) filed today. The Department of Education decided just 3,280 applications during the month. 

At that pace, borrowers at the back of the queue face a wait of over 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’ll finish PSLF the normal way before their buyback application is ever processed.

PSLF Buyback Backlog Will Lead To Denials: PSLF Buyback allows borrowers to “purchase” months they missed due to certain deferments and forbearance to count toward their 120 qualifying payments. Most buyback applicants are looking to recover the period of time spend in the SAVE forbearance – which could be up to 24 months or so if they remain in the SAVE forbearance until the end.

The math problem is straightforward: if the buyback queue takes 27 months to clear and you only need 8 to 16 more qualifying payments, you’ll likely hit 120 payments through normal monthly payments before the Department ever gets to your application. When that happens, you receive PSLF forgiveness the standard way and your buyback application gets closed or denied as moot.

This isn’t a hypothetical. Some borrowers who filed buyback applications in late 2024 and early 2025 have been making qualifying payments while waiting. Many of those borrowers are approaching or have already crossed the 120-payment threshold on their own.

This creates an unusual situation: the backlog may partially resolve itself through denials and closures rather than through faster processing. And that may not be the best outcome for borrowers, since many borrowers face higher payments today than what they would have paid over the prior two years.

The growing denial rate hints at this trend. In March, 440 buyback applications were denied and 130 were closed without a decision. While the Department doesn’t break out reasons for denials, the timing aligns with early applicants reaching the front of the line only to find they no longer need the buyback.

What This Means For Borrowers: If you have a pending PSLF Buyback application, run the numbers. Count your current qualifying payments and estimate when you’ll reach 120 without the buyback. If the answer is sooner than the estimated queue wait, you may not need the buyback at all. In that case, make sure you’re on a qualifying repayment plan (IBR, PAYE, ICR, or the upcoming RAP plan) and keep making monthly payments while you wait.

How This Connects: We’ve been tracking the PSLF Buyback backlog since court-ordered reporting began. Last month we reported that the queue could mean a 3-year wait for public servants. We’ve also covered whether PSLF Buyback is worth it given rising costs and processing delays, and why borrowers may want to switch to an active repayment plan rather than wait in forbearance. 

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