Student Loan Update: Thousands of Borrowers Told to Pay Incorrect Amount
Summary
About 6,000 federal student loan borrowers were told to reapply for income-driven repayment plans after a federal system error gave them wrong monthly payment amounts. The Department of Education said affected borrowers have been contacted and are asked to submit new applications to get correct payment figures.Key Facts
- Roughly 6,000 borrowers received incorrect monthly student loan payment amounts due to a calculation error.
- The problem mainly affected borrowers who updated their family size manually.
- Federal Student Aid could not properly use their tax information to recalculate payments accurately.
- Borrowers were emailed that they need to reapply for income-driven repayment plans to get corrected payments.
- For some, the new payment amounts are much higher than they expected.
- The error comes during major changes to student loan repayment programs under President Trump’s administration.
- Borrowers face pressure to make quick financial decisions amid confusing information and changing repayment rules.
- This is not the first recent error; a previous issue in June showed some payments incorrectly set at $50.
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