"A major program for student-loan borrowers in public service is facing big changes - and delays. Over 7 million borrowers are pursuing the Public Service Loan Forgiveness program, which forgives student debt for government and nonprofit workers after 10 years of qualifying payments. Thousands of those borrowers, though, might have completed their qualifying payments but are still waiting for relief."
"A recent court update from the Department of Education reported an increase in the backlog of buyback processing. The filing said that 83,370 applications were pending as of December 31. Over the month of December, the department approved 1,690 buyback applications and received an additional 5,090. The department wrote in its filing that "the PSLF Buyback database is dynamic; approval/denial data is inherently subject to change; and FSA can only see an application's current status, not past statuses.""
More than seven million borrowers pursue Public Service Loan Forgiveness, which forgives student debt for government and nonprofit workers after ten years of qualifying payments. Thousands who completed qualifying payments remain waiting because they applied for PSLF buyback, which lets borrowers purchase months spent in deferment or forbearance by making payments equal to what they would have owed. Buyback eligibility requires those purchased payments to reach the 120-payment threshold. A Department of Education filing reported 83,370 buyback applications pending as of December 31, with 1,690 approvals and 5,090 new applications in December. The department plans a new rule limiting PSLF eligibility, and advocates filed lawsuits to block it.
Read at Business Insider
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