Some public-sector workers pursuing student loan forgiveness are seeing their qualifying payment counts reduced after the U.S. Department of Education began reviewing borrower records for err
Some public-sector workers pursuing student loan forgiveness are seeing their qualifying payment counts reduced after the U.S. Department of Education began reviewing borrower records for errors.
The changes affect Public Service Loan Forgiveness, or PSLF, which cancels remaining federal student debt after 120 qualifying monthly payments while working for an eligible government or nonprofit employer.
Borrowers have reported sudden reductions in their payment totals, including cases where accounts previously close to the 120-payment threshold were moved further away from forgiveness.
The Education Department told CNBC that coding errors had produced inaccurate counts for some borrowers and that the agency is correcting those records.
More than 1.2 million borrowers have received about $90.6 billion in PSLF relief, according to Brookings, averaging nearly $75,000 per borrower.
PSLF payment tracking has been revised repeatedly in recent years. Previous changes gave some borrowers credit for periods that had not originally counted, including certain deferments and forbearances.
The latest review comes as broader student loan changes reshape repayment rules for millions of borrowers.
A lower PSLF count can delay debt cancellation and affect financial decisions such as home purchases. That pressure is more significant while mortgage rates remain elevated.
Borrowers who believe their new payment count is wrong can file a PSLF reconsideration request through Federal Student Aid.
Experts also recommend keeping screenshots of payment totals, bank statements and employer certification forms in case account records change again.
Not every adjustment will reduce forgiveness credit. Scott Buchanan of the Student Loan Servicing Alliance said some borrowers could see their totals increase as errors are corrected.
