"PSLF Qualifying Months of Employment Incorrect," reads a new banner message on borrowers' account dashboards at StudentAid.gov. "The number for your PSLF qualifying months of employment is incorrect. We are working to fix the data issue and will provide an update soon. We apologize for the confusion caused by this error."
The banner appeared Thursday, days after borrowers pursuing Public Service Loan Forgiveness began reporting sudden drops in their qualifying payment counts, with some receiving formal "Qualifying Payment Reduction Notices."
Here is the new banner borrowers are seeing:
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Why It Matters
PSLF provides loan forgiveness on remaining Direct Loan balances after 120 qualifying payments, or 10 years of full-time work for a government or nonprofit employer. The payment count is the center piece of the entire program, and borrowers depend on the tracker and banners at StudentAid.gov to confirm progress.
Federal Student Aid call center reps are telling callers the issue is a data error, that payments still qualify, and that a fix is coming, but the department has not said how many borrowers are affected or when counts will be restored. The Department of Education has not returned a request for comment as of publication.
What Borrowers Are Seeing
One Reddit user reported falling from 103 qualifying payments to 88 after submitting a routine employment certification, with payments that previously counted toward PSLF suddenly marked ineligible.
Another borrower who made their 120th payment in July (the finish line for forgiveness) watched their tracker drop to 99.
Many borrowers are seeing issues with their July payments specifically.
A Recent Pattern Of Data Glitches
This is at least the third major data error in about a month. MOHELA sent false past-due notices to borrowers who owed nothing, warning some they were at risk of default. Weeks earlier, the department told IDR applicants to reapply for their repayment plans after monthly payments were calculated incorrectly.
The errors are piling up as servicers rush to implement sweeping changes to federal student loans, and two advocacy groups this week called for a pause on payments and interest until the system works.
What Borrowers Should Do
Don't assume your credit is gone. The evidence points to a glitch, not a policy change. We've seen this before when the Department has upgraded or changed their systems, and while it's frustrating in the short term, it usually gets resolved.
But document everything now: download your payment history, save employment certification approvals and IDR letters, and screenshot the month-by-month breakdown on your PSLF tracker. Our PSLF checklist covers the records worth keeping. If your count dropped, contacting your congressperson or senator can add pressure and help escalate your case.
The department's banner says an update is coming "soon" but has given no timeline. Watch for the banner to come down and counts to be restored. With SAVE forbearance ending and millions re-entering repayment, the system strain behind these errors isn't going away.
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Editor: Colin Graves
Robert Farrington is the founder of The College Investor and is widely recognized as one of the nation’s leading voices on student loan debt and saving for college. He holds an MBA from UC San Diego Rady School of Management and has spent over 15 years researching, writing, and advising on student loans, 529 plans, financial aid programs, and saving and investing for young professionals.
Robert has been featured in the The New York Times, The Wall Street Journal, The Washington Post, NBC News, and Forbes, where he has been a regular personal finance contributor for over a decade. His work combines both professional expertise and personal experience – he successfully navigated his own student loan repayment journey and has helped thousands of readers do the same.
He is committed to making the intersection of personal finance and education transparent and accessible. You can learn more about Robert on the About Page or on his personal site RobertFarrington.com.