Student Loan Borrowers in Public Service Face Growing Debt Relief Delays

Thousands of borrowers pursuing Public Service Loan Forgiveness are stuck waiting for relief due to a backlog in processing buyback applications.

Published on Feb. 21, 2026

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Over 7 million student loan borrowers are pursuing the Public Service Loan Forgiveness (PSLF) program, which forgives debt for government and nonprofit workers after 10 years of qualifying payments. However, thousands of these borrowers who have completed their payments are still waiting for relief due to a growing backlog in processing PSLF buyback applications. The Department of Education has also announced plans to implement new rules this summer that would limit PSLF eligibility, raising concerns among advocates that some public service borrowers could be locked out of debt relief.

Why it matters

The PSLF program is a critical lifeline for millions of student loan borrowers in public service roles, but the growing delays and looming eligibility changes threaten to undermine the program's intended benefits. This issue impacts a wide range of essential workers, from teachers and social workers to firefighters and military personnel, who have dedicated their careers to public service.

The details

The PSLF buyback program allows borrowers to "buy back" months spent in deferment or forbearance periods by making payments equal to what they would have owed at the time, which can help them reach the 120-payment threshold for relief. However, the Department of Education has reported a significant backlog, with 83,370 buyback applications pending as of December 31, 2025. Over that month, the department approved just 1,690 applications and received an additional 5,090 new ones. Some borrowers seeking a PSLF buyback were also enrolled in the SAVE income-driven repayment plan, which has been in forbearance for over a year due to litigation, meaning they weren't receiving credit toward PSLF during that period.

  • As of December 31, 2025, there were 83,370 PSLF buyback applications pending.
  • In December 2025, the Department of Education approved 1,690 buyback applications and received an additional 5,090 new ones.

The players

Department of Education

The federal agency responsible for administering the PSLF program and implementing changes to student loan repayment policies.

Jeff Hughes

A PSLF borrower who is concerned about potentially losing the debt relief he has been working toward.

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What they’re saying

“I'm so close to the finish line. I really hope that the program continues as is because we need some more good people out there doing good work.”

— Jeff Hughes, PSLF Borrower (Business Insider)

What’s next

The Department of Education is set to implement a new rule this summer that would limit PSLF eligibility, a move that has drawn criticism from advocates who say it could lock some public service borrowers out of debt relief. The department is also working to implement broader changes to student loan repayment, including new income-driven repayment plans and borrowing caps, which could lead to higher monthly payments for some borrowers.

The takeaway

The growing delays and looming eligibility changes to the PSLF program threaten to undermine a critical debt relief program for millions of public service workers. This issue highlights the ongoing challenges and uncertainty facing student loan borrowers, particularly those who have dedicated their careers to serving their communities.