Student Loan Update: Trump Admin Rolls Back Forgiveness for Some Borrowers
Summary
The Department of Education under President Trump has reversed some previous credit counts for the Public Service Loan Forgiveness (PSLF) program. This change affects federal student loan borrowers who work in government or nonprofit jobs and could delay their loan forgiveness.Key Facts
- PSLF forgives remaining federal student loans for borrowers working in public service after 120 qualifying monthly payments.
- The rollback results from coding errors in payment counts linked to changes made in May 2024 during the Biden administration.
- Some borrowers who thought they were close to forgiveness will now have to make more payments.
- The Department of Education has corrected the errors and notified most affected borrowers.
- The exact number of borrowers impacted by the rollback has not been disclosed.
- Errors included inaccurate billing, incorrect payment credits, and confusion about forgiveness eligibility.
- PSLF was created in 2007 and may benefit over 9 million borrowers in government or nonprofit roles.
- The Department says it remains committed to properly crediting all qualifying payments.
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