Buy Back Loans May 2026

: Borrowers can "buy back" months they were in deferment or forbearance so those months count toward the 120 qualifying payments required for forgiveness.

: You must have an outstanding Direct Loan balance and documented qualifying public service employment for the months being repurchased. buy back loans

: If a borrower defaults or delays payments for a specific period (typically 30, 60, or 90 days), the loan originator is contractually obligated to buy back the loan from the investor. : Borrowers can "buy back" months they were

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A specialized version exists for federal student loan borrowers through the U.S. Department of Education .

: The originator typically returns the nominal capital (principal) plus any accrued interest to the investor, shielding them from the borrower's default risk.

: These transactions are often structured as "open market purchases" and must comply with specific credit agreement provisions to ensure all lenders are treated fairly. 3. Public Service Loan Forgiveness (PSLF) Buyback