Education Department's PSLF Recalculation Affects 1.2 Million Borrowers

The U.S. Department of Education is reevaluating account histories for borrowers in the Public Service Loan Forgiveness (PSLF) program, potentially reducing qualifying payments for some. This change impacts around 1.2 million public servants, each with an average cleared balance of nearly $75,000. An Education Department spokesperson stated that 'coding errors' made under the Biden administration led to these inaccurate payment counts. This recalibration could delay debt cancellation and affect the financial stability of public workers, hindering their ability to achieve life milestones such as homeownership.