Education Department admits data error caused $0 income entries in student loan case
The Department of Education corrected a filing after discovering that a system glitch listed five borrowers' incomes as $0, which the borrowers said was inaccurate.
A federal court filing in a case to reinstate the REPAYE repayment program was amended after the Education Department realized that five claimants had been recorded with $0 income. The borrowers disputed this figure, noting they had already provided proof of earnings. Department analyst Anthony Lowery explained that a 2024 update to the National Student Loan Data Service removed certain legacy data, causing the system to default to zero when no information was present.
He acknowledged he had not known the database behaved this way. The error matters because a zero-income status would automatically qualify borrowers for low-payment plans, weakening their argument for REPAYE's specific benefits. The lawsuit also seeks to halt mandatory moves from the SAVE plan, which started a 90-day transition period on July 1, with the earliest possible forced transfer slated for September 29. The Education Department says it is addressing various billing and notice glitches.
Why it matters
The mistake could affect borrowers' repayment options and the outcome of a case aiming to preserve lower-cost loan plans.
In this story
