What months are eligible for PSLF Buyback?
Any months where your Direct Loans had a positive balance and which coincided with qualifying employment when you were either in deferment, in forbearance, or in deferment or forbearance after the first disbursement date of a Direct Consolidation Loan.
Are there months that cannot be bought back?
You cannot buy back months under the following loan statuses:
- In-school or in-origination
- In-grace
- Default
- Bankruptcy
- Total and permanent disability monitoring
Additionally, you cannot buy back months on loans that are:
- not a Direct Loan
- In a paid-in-full status
- In a forgiven status
- In a discharged status
- Included in a Direct Consolidation Loan
How is the Buyback amount calculated?
The Buyback amount is contingent upon what your payment would have been during the deferment or forbearance period that you are buying back. The amount will either be based on your payment under an Income-Driven Repayment (IDR) plan or the 10-year Standard Repayment plan, whichever is lower. For a more specific breakdown, refer to the Education Department’s site.
Who handles the PSLF Buyback Program?
Federal Student Aid (FSA) will be in charge of managing this program.
Do I need to continue to make payments while my application is being reviewed?
Yes, you must make payments until your Buyback is approved.
When do I stop making payments on my loans?
You will no longer be obligated to make a payment once you have made the full Buyback payment within 90 days of receiving the agreement.
Does the Buyback payment need to be made all at once?
No, you can make multiple payments but the full amount must be paid within 90 days of receiving the agreement.
Can the Buyback agreement be voided for any reason?
The agreement can be voided for the following reasons:
- You submit a PSLF form after the agreement was sent
- Your loan is paid off after the agreement was sent
- You apply for or consolidate your loan after the agreement was sent
- Your loan is discharged or forgiven for any reason after the agreement was sent
Will I receive a refund?
You will only receive a refund if you have no additional outstanding loans. If you do, then the payment that exceeds the Buyback agreement will first be applied to other outstanding loan balances before a refund is issued.
If the PSLF Buyback agreement is voided, the payment will not be refunded but rather credited as regular monthly payments.
Do I need to currently be working in public service to participate in the Buyback program?
As long as you were employed in the same month associated with your 120th payment and you still have an outstanding balance, you are eligible to participate in the Buyback program and receive forgiveness under PSLF.
Can I participate in Buyback if I have Parent PLUS loans?
If you have outstanding Parent PLUS loans, the 10-year Standard Repayment plan will be used to calculate your Buyback payment amount.
If you have consolidated your Parent PLUS loan(s) into a Direct Consolidation Loan, the Income-Contingent Repayment (ICR) plan will be used to calculate your Buyback payment amount.