Overview
- The Education Department confirmed this week that it has rescinded some previously credited payments for the Public Service Loan Forgiveness program because it identified PSLF counter-code errors tied to May 2024 system changes.
- Notices labeled “Qualifying Payment Count Reduction” appeared for some borrowers and a StudentAid.gov banner warned that payment counts were incorrect and still being updated.
- The department declined to say how many borrowers lost credits or whether every wrongly rescinded month will be restored, and many borrowers report lingering account errors, wrong bills, and trouble getting clear help from servicers.
- Officials linked the coding corrections to earlier Biden-era fixes such as the Limited PSLF Waiver and One-Time IDR Account Adjustment and said work done for the July 1 repayment overhaul revealed the problems.
- Advocates are demanding more transparency and remedies because each lost qualifying month delays forgiveness by roughly one month, and the rollbacks add to broader repayment changes and servicing failures that are increasing borrower stress.