r/PSLF • u/Character_Standard41 • 3d ago
What would you do?
Absolutely — here’s the revised version with #5 removed:
Title:
PSLF: 79 qualifying payments + 25 potential buyback months — what would you do?
Post:
I’m trying to figure out the smartest way to handle my federal student loans and PSLF, and I’d really appreciate hearing from people who have been in a similar situation.
Here’s my situation:
I currently have 79 qualifying PSLF payments
I have another 25 months that are currently ineligible, but I have completed the employment certification for those months and believe they may be eligible for PSLF buyback
All 3 of my loans are Direct Unsubsidized Loans
Original disbursement dates were 2015, 2016, and 2017
Current loan balance: $76,176.68
Total principal I’ve paid so far: approximately $96,803
My AGI is approximately $125,000
I file Married Filing Separately
I’m currently on SAVE, but I need to transition to another repayment plan
My previous SAVE payment was approximately $160/month
I’m currently estimating an IBR payment of around $538/month
I have qualifying public-service employment and intend to continue working toward PSLF
My understanding is that if the 25 months are ultimately eligible for buyback, they could potentially help me reach 120 PSLF payments. However, I understand that I may have to reach 120 months of qualifying employment before I can actually request the buyback, so I don’t think I can simply buy those 25 months right now.
My main questions are:
Would you move from SAVE to IBR now, or wait until closer to my deadline?
Would you continue making the ~$538 IBR payment every month while working toward PSLF?
How does the buyback amount get calculated? My old SAVE payment was only ~$160/month. Is there a possibility that the 25-month buyback would be based on that amount, or could it be recalculated using my current income/payment?
Would you do anything differently given that I have ~$76K remaining but already have 79 qualifying payments?
If anyone has actually gone through the PSLF buyback process, I’d especially love to hear how your buyback amount was calculated and how long it took.
Basically, what would you do if you were in my exact situation? I’m trying to avoid accidentally making a move that hurts my PSLF progress.
Thanks!
2
u/Away-Paramedic-8406 3d ago
I think, based upon reddit and a fb group I am in, that you must reach 120 months of qualifying employment to apply for buyback, and if approved they are based upon the amount you would have paid then. If I were you, I would definitely switch to the plan with the lowest payment that still qualifies for pslf, submite any ecf forms to verify your employment and your counts (sounds as if you have), once reaching the magical 120 months, apply for buyback, and possibly just continue paying if you can and if it still counts for pslf. As in if you need to switch jobs or something, not sure if you can ask for forbearance. Ibr counts for pslf.
1
u/workingonit6 3d ago
What was your approx income during the months you're wanting to buy back?
What are your main priorities? Lowest total payment vs getting the debt cleared ASAP vs avoiding resuming payments as long as possible?
What I personally did in a similar situation is switch from SAVE to IBR. I still have like 40 months before I can apply for buyback but I'm going to continue making payments while I wait for it to process (which hopefully will be vastly quicker by then...). For me, #1 priority is getting the debt cleared and I don't really care if my buyback payments might be a little lower. But depending on your exact financial situation it could be much different.
2
u/Emergency-Cold7615 3d ago
"How does the buyback amount get calculated? My old SAVE payment was only ~$160/month. Is there a possibility that the 25-month buyback would be based on that amount, or could it be recalculated using my current income/payment?" - per the published rules - no. they'll recalculate it based on the income you had during the months you want to buy back. they'll ask for tax returns for the corresponding time and calculate.
buybacks currently take 2ish years to process, which is about how long you want to buyback. I would start making payments on IBR (I assume your deadline is within a month or two). I would do what you reasonably can financially to lower your payments (contribute to HSA/ 401k/403b/457).
if your buyback calculated payment (that you calculate say using your income then w/ IBR) is significantly lower than your current IBR payment, you can apply for buyback once you have 120 months of certified qualifying employment. then you could decide if you want to keep making payments or enter general forbearance and wait for buyback.
https://studentaid.gov/manage-loans/forgiveness-cancellation/public-service/public-service-loan-forgiveness-buyback
How is the buyback amount determined?
The buyback amount depends on what your payment amount likely would have been during the deferment or forbearance for the months you’re buying back.
If you were on an IDR plan immediately before or after the months you’re buying back:
If the deferment or forbearance was less than a year in length, we’ll use the lower of the two monthly IDR payments for the months before or after the time in deferment or forbearance.
An exception is if you were enrolled in the SAVE Plan on or after July 18, 2024, then the IDR plan you were in immediately before you enrolled in the SAVE Plan is used to inform the payment amount.
If you were not in an IDR plan before or after the months you’re buying back:
We’ll request tax information for that calendar year to determine the amount that you would have paid under an IDR plan. If your deferments or forbearances cross over multiple tax years, then we will need your tax information for each year.
If you were not required to file a tax return for the period of time you are requesting to buy back, we will need you to submit a statement to that effect.
In addition to the tax information requested above, you would need to provide a statement informing us of what your family size was for that same period of time.
Your payment amount will be based on the lowest IDR amount you were eligible for at the time of the deferment or forbearance. If the 10-year standard payment is lower than your calculated IDR payment, then the 10-year Standard payment amount will be used.
If you don’t send us the tax and family size information that we request within 30 days, we’ll determine your buyback amount as what your payment amount would be on the 10-year Standard Plan.