If you're one of the many public servants working toward Public Service Loan Forgiveness, you might have logged into your account recently and noticed something unsettling: your payment count went down. The U.S. Department of Education says it's fixing "coding errors" in its loan-servicing system that resulted in inaccurate PSLF payment counts. But for some borrowers, that fix means they're now further from the finish line than they thought.

PSLF is a program that forgives the federal student debt of eligible government and nonprofit workers after they make 120 qualifying monthly payments. It's a long haul, and borrowers often track their progress closely. So when counts suddenly drop, it's more than a minor annoyance. CNBC reported Thursday that some borrowers have seen their counts fall unexpectedly, including one case where a borrower's count dropped from nearly 120 to 94. That's a huge difference when you're that close to forgiveness.

The Student Loan Servicing Alliance, a trade group, says these changes are not the result of a new PSLF policy. They're just corrections of technical errors. But that doesn't make it any less stressful for the people affected.

Nancy Nierman, assistant director of the Education Debt Consumer Assistance Program in New York, told CNBC that some of her clients have seen their PSLF counts drop. "It's concerning when someone who relies on numbers reported to them by the government finds out that, through no fault of their own, those numbers were incorrect," she said.

The Education Department didn't immediately respond to a request for comment.

Bigger Changes in the Student Loan System

These adjustments come at a time when the federal student loan system is undergoing a major overhaul. Millions of borrowers are transitioning away from the Biden-era Saving on a Valuable Education (SAVE) plan, and the new Repayment Assistance Plan (RAP) has become one of the replacement options for eligible borrowers.

For borrowers who take out federal student loans on or after July 1, payments generally must be made under RAP to qualify for PSLF. The Tiered Standard Repayment Plan, which is the default for new borrowers, doesn't qualify for PSLF. The new law also limits repayment options for many Parent PLUS borrowers, which could affect their path to PSLF.

Separately, the Education Department recently corrected a court filing after incorrectly stating that five student-loan borrowers had most recently reported zero income. The agency blamed technical problems with its National Student Loan Data System and said a 2024 system update removed some older income information.

Some Borrowers Might See Counts Rise

Scott Buchanan, executive director of the Student Loan Servicing Alliance, called the PSLF adjustments "purely technical accounting errors" and noted that some borrowers could actually see their counts increase. So it's not all bad news.

But Mark Kantrowitz, a higher education expert, pointed out that borrowers whose counts changed haven't necessarily been given a reason for the adjustment. "When a borrower isn't given a specific explanation, they are unable to verify whether the change was accurate," he said.

If you think your qualifying payments were incorrectly removed, you can submit a PSLF reconsideration request. Consumer advocates also recommend keeping records of your payment counts and employment certifications. It's a good reminder that in the world of student loans, documentation is your best friend.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by MarketDash editors.