More than 74,000 federal student loan borrowers in the US are currently waiting for their applications to be processed under a key loan forgiveness programme, according to newly filed court documents. The backlog, linked to the Public Service Loan Forgiveness (PSLF) Buyback initiative, has continued to grow under President Donald Trump’s administration.As of August 31, 74,510 applications were pending review by the US Department of Education. This is up from 72,730 in July and 65,448 at the end of June. The PSLF Buyback programme allows eligible borrowers to retroactively purchase months of qualifying credit towards loan forgiveness that were previously ineligible due to forbearance or deferment.Backlog grows as application volume risesThe PSLF Buyback initiative, first launched under the Biden administration in 2023, gained popularity after legal blocks were placed on the SAVE (Saving on a Valuable Education) plan in 2024. Many borrowers who had enrolled in the SAVE plan were automatically placed into forbearance during court proceedings. As a result, their progress toward PSLF credit was frozen, even though they continued to work in qualifying public service roles.The Buyback programme offered a way to regain that lost time by allowing borrowers to “buy back” missed months—provided they had completed 120 months of qualifying public service employment. However, processing delays have left tens of thousands waiting for a determination on their eligibility.Court filings, referenced by CNBC, revealed that in August alone, only 5,600 buyback applications were processed. Meanwhile, the overall backlog continues to rise month-on-month.Staff cuts contribute to slower processingAccording to CNBC, the delays have coincided with staffing changes within the Education Department. In March, the Trump administration terminated nearly half of the department’s personnel, including those directly responsible for supporting borrowers.The American Federation of Teachers has filed a lawsuit, alleging that the department is preventing eligible borrowers from accessing their rights. As part of ongoing legal proceedings, the Department has been required to disclose data related to pending buyback applications.Ongoing challenges for borrowersBorrowers who spoke with CNBC reported waiting up to six months or more for updates on their applications. Despite the delays, consumer advocates continue to encourage eligible individuals to apply.Nancy Nierman, assistant director at the Education Debt Consumer Assistance Program in New York, told CNBC that there is “no harm in submitting the application” if a borrower meets eligibility requirements. However, she advised that borrowers who can afford to continue payments should not rely solely on the Buyback programme, especially if they are only a few months short of qualifying for forgiveness.Borrowers can apply through the PSLF Reconsideration portal on their Federal Student Aid accounts. Upon application, the Education Department calculates the number of missed qualifying payments and sends an offer letter. The calculation typically depends on the borrower’s payment amounts before and after the non-qualifying period, CNBC reported.Application process and repayment considerationsOnce the offer is received, borrowers have 90 days to make the required payment to their loan servicer. Some low-income borrowers may be eligible for zero-dollar buyback payments, depending on their past payment history and income levels.In addition to PSLF Buyback delays, more than one million repayment plan change requests are also pending with the Education Department, according to court filings cited by CNBC.Interest on federal student loans resumed in August, even for those currently in forbearance under the SAVE plan. However, if a borrower makes more than the required 120 payments or continues paying while waiting for a decision, they may be eligible for a refund, higher education expert Mark Kantrowitz told CNBC.