Does the SAVE Forbearance Count For PSLF?

When the 8th Circuit Court blocked parts of the SAVE income-driven repayment plan, borrowers enrolled in the plan were placed into an administrative forbearance. This pause temporarily stopped required payments and interest accrual (interest has since been turned back on). But unlike the pandemic-era payment freeze, these months do not directly count toward PSLF progress.

For borrowers relying on Public Service Loan Forgiveness after 10 years of payments, this pause has been a setback. Time in forbearance is not considered an active repayment period, so it cannot be applied toward the 120-payment requirement.

However, there is a workaround called PSLF Buyback that may be an option... but other setbacks and massive delays are causing issues with that option. 

The Role Of PSLF Buyback

The Department of Education has created the PSLF Buyback Program, designed for borrowers who are close to completing their 120 qualifying payments. Under this option, individuals can retroactively make up for certain ineligible months, including those in the SAVE forbearance.

PSLF buyback is only eligible for certain periods of deferment or forbearance. The SAVE forbearance qualifies as one of them. 

To qualify, borrowers must:

• Have worked full-time for a qualifying employer during the months in question.
• Certify that employment through the PSLF Help Tool if not previously done.
• Be within range of the 120-payment mark: buyback is only available if it would push the borrower across the finish line.
• Make a lump-sum payment equal to what they would have owed under an income-driven repayment plan at that time.

The process is manual, and borrowers should expect significant delays. Current reports indicate that processing could take more than a year, leaving some uncertain about when loan forgiveness will finally be granted.

Should Borrowers Stay In SAVE Forbearance If They Want PSLF?

Whether to remain in SAVE forbearance depends on how close a borrower is to forgiveness.

• Close to 120 Payments: If within a year of forgiveness, staying in forbearance and relying on buyback may make sense. However, this requires making up the skipped months later, often with a sizable lump-sum payment. It may also make sense to simply switch to IBR and begin making payments if you can afford it, because PSLF Buyback may take over a year to process - where as "regular" PSLF may be quicker by simply making payments.
• Far From Forgiveness: Borrowers with several years left should consider switching to another income-driven repayment plan if they can afford the payments. Options like IBR or PAYE allow payments to continue counting toward PSLF without interruption. Since the buyback only applies near completion, those further away may be better off resuming payments now.
• Not Pursuing PSLF: For borrowers seeking forgiveness under general income-driven repayment programs, the buyback option does not apply. Remaining in SAVE forbearance simply extends the timeline. You can wait or leave depending on your budget and ability to resume payments.

Key Takeaway

For public service workers pursuing loan forgiveness, the SAVE forbearance is a complicated detour. It may provide temporary relief, but it does not count toward PSLF progress on its own.

The PSLF Buyback Program offers a path forward, though it is limited, slow, and best suited for those nearing forgiveness.

Borrowers further from their goal may find it more practical to switch to a qualifying repayment plan now rather than rely on uncertain future corrections. However, individual budget considerations matter.

People Also Ask

Does the SAVE Forbearance count for PSLF?

The SAVE forbearance does not directly count for PSLF, but borrowers can use the buyback program to "buy back" eligible months during the SAVE forbearance.

Can I use PSLF buyback for the time in SAVE forbearance?

Yes, the SAVE administrative forbearance is an eligible forbearance for PSLF buyback.

Should I leave the SAVE forbearance if I plan on pursuing PSLF?

It depends. It may help you reach your goal faster to leave the SAVE forbearance. But whether you can afford it in your monthly budget will make the difference.

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