Exploring the PSLF Buyback Program

The Public Service Loan Forgiveness (PSLF) Buyback Program is offering a lifeline to borrowers who have missed payments but still want to qualify for loan forgiveness. This program allows borrowers to “buy back” missing payments that would have otherwise made them eligible for PSLF.

To qualify for PSLF, borrowers must have 120 months of qualifying payments while working in a public service job. If some payments were missed due to specific reasons, borrowers can now make retroactive payments through the PSLF Buyback Program.

To be eligible for the program, borrowers must have 120 months of qualifying employment in a public service job and an outstanding student loan balance. They can buy back months when they were in an ineligible deferment or forbearance status by making payments equivalent to what they would have paid in a qualifying payment plan.

The amount of buyback payments will be based on the lowest income-driven repayment monthly payment during the deferment or forbearance period. Borrowers can also wait for an Income-Driven Repayment (IDR) payment count adjustment before applying for the program, which may reduce the number of payments required for forgiveness.

To apply for the PSLF Buyback Program, borrowers should submit the PSLF Reconsideration Application and specify the time period to be reconsidered. If approved, borrowers will receive a buyback agreement and must pay the specified amount within 90 days.

Overall, the PSLF Buyback Program offers a second chance for borrowers who have missed payments but still want to qualify for loan forgiveness. It provides a pathway to financial relief for those working in public service jobs.