student loans relief is getting harder for public-service borrowers after the Department of Education changed how certain forgiveness requests are handled. The shift affects the Public Service Loan Forgiveness process and could raise costs for thousands of people trying to qualify. The change comes as borrowers already enrolled in SAVE are being pushed toward new repayment options.
What changed in the forgiveness process
The key shift affects PSLF “buyback” requests, which allow borrowers to pay for months spent in deferment or forbearance if those months would move them closer to forgiveness. Under the earlier approach, those amounts were tied to the SAVE formula, which could mean lower monthly payments. The new guidance says that for months bought back on or after July 1, 2024, after litigation blocked SAVE, the calculation will use a different formula.
FSA guidance says that if a borrower was not on an IBR, PAYE, or ICR plan on either side of the period being bought back, the agency will request income and family size information to determine the buyback amount. That change matters because the payment amount can determine whether a borrower can reach forgiveness without taking on a heavier financial burden first. For many, student loans relief now depends on a more expensive path than before.
Student Loans borrowers face delays and uncertainty
The Department of Education’s latest status update said 88, 170 PSLF buyback applications were pending as of February 28. The department received 4, 180 buyback applications in February and processed buyback relief for 12, 640. That backlog suggests the system is already under pressure as borrowers try to move through the process.
Borrowers enrolled in SAVE will start getting notices in July to transition to a new repayment plan. Also starting in July, a new rule limiting eligibility for PSLF is set to take effect. The rule changes the definition of public service and would exclude employers who participate in “illegal activities, ” a step that lawmakers and advocates say could affect borrowers working for companies that do not align with the administration’s political views.
Immediate reactions from borrower advocates
Amy Czulada, senior adviser for outreach and engagement at Protect Borrowers, said the end of SAVE was a turning point for affordability. She said, “It was a political choice on the part of the Trump administration to not fight for borrowers. ” She added that the December settlement means more borrowers will be pushed into more expensive plans moving forward.
Tamar Hoffman, a consumer rights attorney at Community Legal Services, warned borrowers not to wait. She said that if a borrower does nothing, they will automatically be placed in the standard plan, which is often significantly more expensive. Hoffman said SAVE borrowers should apply for a different income-driven repayment plan before the 90-day deadline if they want to keep payments as affordable as possible.
Why this is happening now
The SAVE plan has officially ended after a federal court settlement in December and a later ruling in March upheld the earlier decision. The Department of Education has said millions of borrowers must move to new plans, and the agency has already stopped new enrollments and denied pending SAVE applications.
For public-service workers, the timing is especially sharp because student loans relief has now become tied to both the transition away from SAVE and a stricter PSLF environment. The coming months will show how many borrowers can adjust before the deadlines and whether the pending buyback cases begin to move faster.
What happens next will turn on how quickly borrowers respond, how the Department of Education handles the July notices, and how the new PSLF rule is implemented. For thousands watching their timelines and payment counts, student loans relief may now hinge on avoiding delays rather than simply reaching the finish line.
