Department of Education Quietly Changes PSLF Buyback Program Rules, Cutting Off Public Service Workers From Loan Forgiveness

FOR IMMEDIATE RELEASE

September 3, 2026

Contact:

Natalia Abrams

Email: natalia@studentdebtcrisis.org

WASHINGTON, D.C. – The Department of Education has quietly updated its online guidance regarding the Public Service Loan Forgiveness (PSLF) Buyback Program. The Student Debt Crisis Center (SDCC) condemns this reckless change which threatens to prolong or remove public service workers’ access to a popular student loan benefit.

The PSLF Buyback program was designed to allow borrowers to “buy back” or make up certain months that did not count toward PSLF for several reasons, such as being in forbearance or deferment. Under the new guidance, borrowers enrolled in the two newest repayment plans, the Repayment Assistance Plan (RAP) or the Tiered Standard Repayment Plan, will no longer be able to use the PSLF Buyback Program to make up those months. These changes will result in longer repayment periods, disqualify some public service workers from the full benefits of the PSLF Buyback Program, add to the existing confusion and chaos coming out of the Department of Education, and worsen the existing application processing backlogs.

“Once again, the Department of Education is deciding borrowers' futures behind closed doors with no warning, no explanation," said Natalia Abrams, President & Founder of the Student Debt Crisis Center. "Public service workers have endured broken promises, processing delays, and forced exits from SAVE. Many were counting on the Buyback Program as their last safeguard against losing years of progress toward forgiveness. Quietly shutting that door for RAP borrowers betrays the teachers, nurses, and public service workers who serve as the backbone of our communities. Secretary McMahon must reverse this guidance now and give borrowers the transparency they deserve."

This change in guidance comes as nearly 8 million borrowers are being forced out of the Saving on A Valuable Education (SAVE) plan, and many public service workers intend to buy back the months spent in the SAVE forbearance due to ongoing litigation. Changes to the Buyback Program will directly affect millions of these borrowers who have already enrolled in, or plan to enroll in, the new Repayment Assistance Plan.

The Department of Education has not publicly announced this change or explained how or when it was implemented. SDCC is calling on the Department and Secretary Linda McMahon to reverse this guidance and restore PSLF Buyback eligibility for borrowers enrolled in RAP.

For more information or to schedule an interview, please contact Natalia Abrams at natalia@studentdebtcrisis.org.

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Student Debt Crisis Center is a national advocacy organization with nearly 2,000,000 supporters calling for fundamental reforms to student loan policies and an end to the student debt crisis. Learn more here.