politics
Education Department recalculates student loan forgiveness counts, setting some PSLF borrowers back
Many borrowers pursuing Public Service Loan Forgiveness have recently learned that they're further away from debt cancellation than they'd expected.
TL;DR
- The U.S. Department of Education is reevaluating account histories for Public Service Loan Forgiveness (PSLF) borrowers.
- Some borrowers are seeing their qualifying payment counts reduced, moving them further from debt cancellation.
- The issue stems from "coding errors" made by the Education Department.
- PSLF forgives federal student debt for government and nonprofit workers after 10 years or 120 qualifying monthly payments.
- Consumer advocates warn that a delayed forgiveness timeline can force borrowers to postpone major life milestones.
- Borrowers who have lost qualifying payments can submit a reconsideration request to the Education Department.
- Recommendations for borrowers include screenshotting payment counts, downloading bank statements, and submitting employer certification forms annually.