Thousands of PSLF Borrowers See Payment Counts Drop After Education Department Coding Error

Thousands of borrowers working toward Public Service Loan Forgiveness have seen their qualifying payment counts drop unexpectedly, after the U.S. Department of Education corrected what it described as a coding error in its student loan systems.

The drops appeared on borrower dashboards in early August 2026. Some borrowers reported losing credit for months they had already counted toward the 120-payment requirement needed for forgiveness. The Education Department said the adjustments stem from errors introduced during a system update in May 2024.

The department said some credit previously granted under temporary initiatives, including the Limited PSLF Waiver and the one-time Income-Driven Repayment account adjustment, was rolled back as part of the technical correction.

Borrowers and advocacy groups have expressed frustration. The department has not disclosed how many people were affected or by how many months their counts were reduced.

"People have been making payments for years based on a count they trusted," said one student loan expert. "Losing months without a clear explanation is deeply unsettling."

Experts are advising borrowers not to make major decisions, like consolidating loans or leaving the program, based on the current dashboard numbers. Instead, they recommend documenting everything: taking screenshots of current counts, downloading full payment histories from StudentAid.gov and loan servicer portals, and keeping copies of all Employment Certification Forms.

Borrowers who believe their count was reduced in error can submit a formal PSLF reconsideration request to the department.

The Education Department has said a fix is in progress but has not given a timeline for restoring any qualifying months that were incorrectly removed.

CNBC reported on the issue in late August, and advocacy groups continue to monitor the situation as borrowers wait for resolution.