As the deadline for student loan forgiveness looms, a considerable backlog has left many borrowers feeling anxious and uncertain about their financial futures. A targeted relief Public Service Loan Forgiveness (PSLF) program provides relief to those who work for the government and other not-for-profits. They can get this forgiveness after 120 qualifying payments. As of the end of July, 72,730 buyback requests remain pending with the U.S. Department of Education. This conundrum has put people such as April Osteen, Josh Harner and Dan Carrigg in a lurch.
April submitted her buyback request back in January, of course looking forward to the day when she would finally have her student loan forgiven. According to her story, she only owes 1 more of the needful 120 payments – but her account reflects she has completed 119. Now with only one payment remaining to be eligible for forgiveness, Osteen is understandably exasperated by the holdup.
“I’m the type of person that checks my email 10 times a day,” she detailed her stress and nerves with waiting.
No one knows that better than Josh Harner. He’s been there himself. And yet he’s still waiting for relief since submitting his buyback request over eight months ago in early December. Harner has spent more than a decade of his life assisting others in achieving their General Educational Development (GED) credentials. Despite being deeply committed to public service, he currently has a daunting total of more than $120,000 left in student debt.
“It will feel much better saving the money toward my son’s education,” Harner said. He wants to give his son opportunities without the debt burden he has lived through.
Dan Carrigg’s situation is equally troubling. He filled out his buyback application last August — at the very beginning of the buyback period — and still has not heard back. According to Carrigg’s own loan history, he has 108 qualifying payments on the record. In addition to his existing balance of about $15,000.
“I have considerably more than 10 years of certified employment,” Carrigg stated, emphasizing his eligibility for the program. Somehow he has still been unable to make his way through the system. “I still call Federal Student Aid every week or two,” he added, expressing his frustration with the lack of communication from the Department.
The PSLF program exploded in popularity in the summer of 2024. This came shortly after courts stopped the Biden-era Saving on a Valuable Education (SAVE) plan. During the Trump administration, over 72,000 borrowers were stuck in a backlog. It became even more dire in June with 65,448 applications still pending.
Ellen Keast, a spokesperson for the Department of Education, acknowledged the backlog: “The Department is working its way through this backlog while ensuring that borrowers have submitted the required 120 payments of qualifying employment.” Even with these changes, many borrowers are still not convinced that the issues will be resolved in time.
“Long delays in PSLF buyback processing must be corrected immediately so that public service workers who have provided essential local services are not deprived of the relief they’ve earned,” said Jaylon Herbin, an advocate for borrowers facing similar issues.
For people such as Osteen, Harner, and Carrigg, uncertainty still clouds every financial decision they undertake. I don’t know what else there is to do,” Carrigg said, foreshadowing the physical and emotional impact this arduous process has had on him.
The Department of Education is pursuing aggressive measures to delete the backlog and respond to outstanding requests. In the meantime, borrowers are struggling with figuring out their financial lives and long-term plans. Like every day that goes by, it brings them closer to a possible relief, but at the same time increases their fears about the possible outcome.