The Education Department has begun notifying some student loan borrowers who had applied for income-driven repayment plans that, due to a calculation error, they must now reapply again for the same repayment plan. The request potentially jeopardizes their access to affordable monthly payments and may temporarily pause their ability to remain on track for eventual student loan forgiveness.

The latest development comes as borrowers are struggling to navigate major changes to the federal student loan system. Earlier this month, the department began notifying millions of borrowers with student loans in the SAVE plan that they have a short window of time to switch to a different income-driven plan, or they could face significant financial consequences. The department has also launched two new repayment plans while also trying to manage other major changes to federal student loan programs. Borrowers have increasingly been reporting application and processing errors across the federal student aid system.

Here’s the latest on the new student loan payment calculation errors for income-driven repayment plans, and what we know so far.

Student Loan Borrowers Told They Must Reapply For Income-Driven Repayment Plans Due To Calculation Issue

The latest processing problems center on income-driven repayment plans, which offer borrowers affordable payments on their federal student loans based on their income. Payments under IDR plans typically must be recalculated every 12 months, and any remaining balance can then become eligible for student loan forgiveness after anywhere from 20 to 30 years in repayment, depending on the specific IDR plan.

Thousands of borrowers have been applying for IDR plans during the........

© Forbes