The Education Department has publicly confirmed that it is reversing some student loan forgiveness credit borrowers had received toward Public Service Loan Forgiveness. The admission follows mass confusion last week as borrowers began reporting that their qualifying payment counts for the PSLF program had suddenly dropped, pushing them further away from being eligible to discharge their student loans.

PSLF is a popular program that allows borrowers to qualify for student loan forgiveness after 120 “qualifying payments,” which is the equivalent of 10 years. Payments must be made on Direct federal student loans under specific repayment plans (mostly income-driven repayment plans) while the borrower is employed for certain nonprofit or government organizations. Any remaining student loan balance can be discharged after the borrower has made 120 qualifying payments (and those payments don’t have to be consecutive).

Last week, borrowers began reporting that their qualifying PSLF payment counts had suddenly and inexplicably been reduced by the Education Department. Customer service agents at the department’s Federal Student Aid call centers had initially told borrowers that the sudden drop in student loan forgiveness credit was due to an unspecified data error. But now, the department appears to be acknowledging that at least some of the rescinded PSLF credit was deliberate, and was intended to resolve “errors” in the department’s data systems. Here’s the latest.

Reversed Student Loan Forgiveness Credit Originally Attributed To PSLF Data Error

Borrowers with student loans on track for PSLF began reporting last week that their PSLF payment counts had suddenly been reduced. Some borrowers received official notices from the Education Department’s Office of Federal Student Aid, informing them of a “Qualifying Payment Count Reduction,” and detailing specific months that had counted toward student loan........

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