Student Loan Update: Trump Admin Rolls Back Forgiveness for Some Borrowers
The Education Department confirmed that Federal Student Aid identified "multiple PSLF counter code errors."
The Trump administration has reversed certain Public Service Loan Forgiveness (PSLF) credits for some student loan borrowers, extending the timeline for loan forgiveness. The Department of Education attributed the rollback to coding and payment-count errors that arose from changes implemented during the Biden administration in 2024.
These errors led to inaccurate payment counts for affected borrowers, some of whom had been working toward PSLF for 10 years. The department has since corrected the issue and notified the majority of impacted borrowers, but borrowers nearing the finish line could face delays in loan forgiveness by months or even years. The administration has not disclosed the exact number of borrowers affected, but financial experts warn that this may discourage some from pursuing government loans, potentially shifting more borrowers towards private lending.
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