Delays and Rule Changes Threaten Public Service Loan Forgiveness for Borrowers
Borrowers seeking Public Service Loan Forgiveness are encountering payment-counter glitches and stricter timing rules, leaving many unsure whether to keep paying or risk delinquency.
Borrowers enrolled in the Public Service Loan Forgiveness (PSLF) program are facing two major obstacles. First, Federal Student Aid’s online portal has not reflected recent 120th payments for some participants, leaving them uncertain whether they have reached the forgiveness threshold. Second, a recent policy shift eliminates the former 15-day grace period, demanding that each payment be made precisely on its due date to count toward PSLF.
These complications come as the Department of Education continues to defend a Trump-era overhaul that tightened eligibility rules and rescinded some previously counted payments due to coding errors. A proposed rule slated for July 1, which would have further narrowed eligible public-service employers, was blocked by lawsuits from nonprofit groups, and the department’s appeal is pending in the DC Circuit. The Education Department declined to comment on the timing of the payment-counter fix, only affirming its commitment to credit every qualifying payment. Borrowers remain caught between continuing payments they may not owe and the risk of being marked delinquent.
Why it matters
Thousands of public-service workers risk losing promised loan forgiveness due to administrative errors and stricter rules.
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