Public-service loan forgiveness credits trimmed for some borrowers after payment count error

The Department of Education announced that it is revising downward the tally of qualifying payments for a subset of borrowers in the Public Service Loan Forgiveness program after discovering coding errors introduced in May 2024. These errors led to inflated payment counts, and the correction now requires those borrowers to complete more payments before their debt can be forgiven. Federal Student Aid officials said the majority of affected individuals have been informed, but they did not reveal the exact number of cases.

The change comes amid ongoing complaints from borrowers about billing mistakes and past-due notices that have arisen since the repayment overhaul took effect on July 1. Advocates have urged the department to hold loan servicers accountable and ensure borrowers receive the relief they were promised. Julie Margetta Morgan, an Education Department official, called for stronger oversight before any further loan reinstatements are considered.