Katy Punch, a librarian in North Carolina, has served her community for over a decade—qualifying her for federal student loan forgiveness through the Public Service Loan Forgiveness (PSLF) program. Enacted in 2007, PSLF promises debt cancellation to not-for-profit and government workers after 120 qualifying monthly payments. But recent developments have disrupted access to this promised relief.
Punch, along with millions of other borrowers, enrolled in the Biden administration’s Saving on a Valuable Education (SAVE) repayment plan. However, when legal challenges emerged from GOP-led states, the administration paused monthly payments in the summer of 2024, placing SAVE borrowers like Punch in a forbearance period. That pause froze her progress just five payments away from clearing her $30,000 balance.
To bridge the gap for those affected, the administration introduced the PSLF Buyback program, allowing borrowers to retroactively pay for missed months during deferment or forbearance. Yet, despite submitting her buyback request in November 2024, Punch has heard nothing back. She remains unable to make the five payments she’s willing to cover to qualify for full loan forgiveness.
She is not alone. As of June 2025, more than 65,000 buyback requests remain pending with the U.S. Department of Education, up from 59,000 in May. Critics argue the PSLF and buyback processes are effectively out of reach. Staffing cuts at the Education Department, enacted under the Trump administration, are seen as a key reason for the slowdown. A major reduction in force earlier this year halved the agency’s workforce, leaving fewer staff to process the growing backlog.
Borrowers are left with difficult choices: remain in forbearance where interest begins accruing again or re-enroll in a PSLF-eligible repayment plan, continuing payments on debt they believe should be erased.
The delays have real-world consequences. For Punch, that means putting off home repairs, limiting retirement savings, and deferring plans for her child’s education.
“I’ve given my life to public libraries,” she said. “Having something I earned held back is deeply disheartening.” The stalled process illustrates the broader uncertainty many public servants now face while waiting for a system meant to reward their commitment to finally deliver.
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