Student-loan borrowers in public service are facing setbacks with debt relief

Student loan borrowers participating in the Public Service Loan Forgiveness (PSLF) program are encountering setbacks as their final payments are taking longer to be processed. Many have been waiting months for their payment counts to be updated, which delays much-needed relief for those who believe they have made their final payments. The ongoing delays have sparked calls for increased congressional oversight.

PSLF forgives student debt for government and nonprofit workers after 10 years of qualifying payments. However, borrowers are reporting that their 120th payment has been paused due to data issues causing count fluctuations on the Federal Student Aid dashboard. The notice from Federal Student Aid, reviewed by Business Insider, confirms that updates will resume once the issues are resolved.

Despite the delays, borrowers can request a forbearance to avoid further payments, although interest will continue to accrue. There is also a backlog of applications for the PSLF Buyback program, which allows borrowers to recover months spent in deferment or forbearance if those months would bring them to the relief threshold. As of April 30, 2026, there were 88,000 pending Buyback applications.

The repayment overhaul implemented by President Donald Trump on July 1 has added to the confusion and challenges faced by borrowers. Many have received incorrect billing statements and erroneous notices indicating their accounts are delinquent. Some have also had qualifying payments removed from their PSLF calculations due to alleged Biden-era coding errors.

These issues have prompted nearly 100 organizations to urge lawmakers for emergency oversight to prevent borrowers from being harmed by the ongoing repayment changes. The federal student loan system is undergoing several drastic changes simultaneously, creating a complex and confusing landscape for borrowers seeking relief.