U.S. Department of Education reduces PSLF payment counts

The U.S. Department of Education is recalculating the payment histories of certain borrowers in the Public Service Loan Forgiveness (PSLF) program, leading to reduced payment counts for some participants. The PSLF program, established in 2007, provides debt cancellation for government and nonprofit employees after 120 qualifying monthly payments.

A spokesperson for the Department of Education attributed the adjustments to “coding errors” made during the previous administration, which resulted in inaccurate payment tallies. Some borrowers have reported significant setbacks, with one individual noting a drop from nearly 120 payments to 94.

Consumer advocates and higher education experts have raised concerns regarding transparency, noting that borrowers are often not provided with specific explanations to verify the accuracy of these changes. Advocates warn that these delays in debt relief could impact major life decisions for public servants, such as home purchases and family planning. This development follows previous reports from the Government Accountability Office and the Consumer Financial Protection Bureau regarding historical mishandling and accounting issues within the program.