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Student Loan Payments Rise as New Push in Washington Targets Interest Rates
The department said data errors and rule changes led to inaccurate payment counts for some borrowers, pushing them farther from 120 qualifying payments.
- On Tuesday, the Education Department confirmed it is reversing certain Public Service Loan Forgiveness payment credits, forcing affected borrowers to make additional payments to reach the required 120-payment threshold for debt discharge.
- Officials stated the adjustment stems from "multiple PSLF counter code errors" implemented in May 2024 under the Biden Administration, which incorrectly granted payment credits to some borrowers pursuing public service debt relief.
- Borrowers reported confusion last week after seeing payment counts drop on StudentAid.gov dashboards, with some now facing delays of months or years in reaching their forgiveness eligibility date.
- Department of Education Spokesperson Ellen Keast said on Monday the agency remains committed to ensuring accurate crediting, while officials have resolved the coding issue and notified the majority of affected borrowers.
- Financial literacy instructor Alex Beene warned the reversals erode borrower trust, while Kevin Thompson, CEO of 9i Capital Group, suggested this could encourage more students to move into private lending.
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Student loan payments rise as new push in Washington targets interest rates
The Department of Education confirmed to Scripps News this week that some public servants are losing forgiveness credits because of coding errors that occurred during the Biden administration. While the path to forgiveness is now longer for some, monthly payments are also increasing for many others, adding to an already stressful financial burden.Now, there is a new push in Washington to address the affordability of student loan payments.College…
Education Department Rescinds Student Loan Forgiveness Credit, But Scope Of Rollback Is Unclear
The Education Department has publicly confirmed that it is reversing some student loan forgiveness credit. But many questions remain, and borrowers are in the dark.
·Jersey City, United States
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Total News Sources14
Leaning Left2Leaning Right0Center12Last UpdatedBias Distribution86% Center
Bias Distribution
- 86% of the sources are Center
86% Center
14%
C 86%
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