Some student-loan borrowers are losing credit toward a key forgiveness program for public servants
The Trump administration is rolling back Public Service Loan Forgiveness credits for some student-loan borrowers, citing "code errors" under Biden.
The Education Department is modifying Public Service Loan Forgiveness credits for certain student loan borrowers due to code errors under the Biden administration. This change affects borrowers who were granted credits by the Biden administration for accurate account management, but now have a longer path to achieving debt relief as some qualifying payments have been lost.
The issue was identified after multiple PSLF counter code errors were discovered in May 2024. While the majority of affected borrowers have been notified, the department remains committed to ensuring all qualifying payments are properly credited. This is not the first challenge borrowers have faced following the implementation of President Trump's student-loan repayment overhaul, which took effect on July 1.
Past issues include incorrect monthly bills and erroneous past-due notices. Advocates are concerned about the toll this confusion is taking on borrowers, urging the department to ensure public servants receive what they are owed.
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