U.S. Public Service Loan Forgiveness payment errors

The U.S. Department of Education has begun reducing the number of qualifying payments credited toward the Public Service Loan Forgiveness (PSLF) program for thousands of borrowers. Officials attributed these adjustments to “multiple PSLF counter code errors” that allegedly originated from changes implemented in May 2024 under the previous administration.

While the Federal Student Aid office stated it has resolved the issue and notified most affected individuals, the department has not disclosed the total number of impacted borrowers. Some participants have reported significant setbacks, including a drop from nearly 120 payments to 94.

Critics and consumer advocates have condemned the recalculations. Randi Weingarten, president of the American Federation of Teachers, argued that public service workers should not suffer due to administrative mistakes, while former student loan ombudsman Julia Barnard described the impact as “profoundly cruel.” Advocates have also raised concerns regarding transparency, noting that borrowers often lack specific explanations to verify the accuracy of these changes.