Tracking Halted Amid System Chaos


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These failures appear linked to significant staff reductions at the Department of Education.


Federal student loan borrowers face renewed uncertainty as MOHELA, a major loan servicer, notified them that the Department of Education has temporarily suspended tracking payments toward loan forgiveness under Income-Driven Repayment (IDR) and Public Service Loan Forgiveness (PSLF) programs. 

The halt, coupled with the removal of online progress monitoring, reflects ongoing system challenges that recent mass layoffs have exacerbated. These developments unfold as Congress and the Trump administration implement significant changes to federal loan programs, poised to impact millions.

“Federal Student Aid has temporarily removed the forgiveness payment counts from StudentAid.gov for Public Service Loan Forgiveness and Income-Driven Repayment,” states an automated message on MOHELA’s customer service line. 

Representatives offer no additional information, directing borrowers to StudentAid.gov for updates.

This disarray follows a brief period of clarity. In January, the previous administration launched a StudentAid.gov feature that allows borrowers to track their progress on IDR loan forgiveness. 

IDR plans typically offer forgiveness after 20 or 25 years of payments. This tracker provided crucial insight into borrowers’ standing.

However, the Trump administration quietly removed this IDR tracker last spring, citing problems and inaccuracies. This coincided with a February court ruling suggesting forgiveness under three IDR plans—ICR, PAYE, and the new SAVE plan—was inconsistent with congressional intent. Consequently, the department has blocked forgiveness under these plans. 

“Forgiveness as a feature of the SAVE, PAYE, and ICR Plans is currently paused because those plans were not created by Congress,” the department stated in updated guidance issued in April.

IBR plan forgiveness remains available, as Congress separately enacted it.

Despite assurances from Education Secretary Linda McMahon to Sen. Elizabeth Warren (D-Mass.) in June that the IDR tracker would soon be restored, borrowers report that IDR data, if still accessible, is not updating. Some who should have reached forgiveness under IBR have yet to receive a discharge, indicating months are not being counted.

The PSLF, which allows federal student debt discharge in as little as 10 years for public service, also faces tracking problems. While the PSLF tracker remains accessible, payment counts have not been updated for months. “My PSLF counts updated on FSA 4/4,” one Reddit user shared. “I’ve submitted an ECF end of April and end of May… Nothing is triggering the update despite forms being processed.”

Another noted, “My payment count doesn’t show anything past September 2024… payment count remains at 90 when it should be around 104.”

These failures appear linked to significant staff reductions at the Department of Education. A former official from the Federal Student Aid (FSA) Ombudsman office indicated in a court filing that payment count issues are a known problem, worsened by mass layoffs under the Trump administration. 

A specialized team for PSLF transfer errors was reassigned after the “mass RIF” (Reduction in Force), leaving no one to resolve complaints. The official also confirmed IBR loan forgiveness has been paused since July 2024. The “mass RIF,” announced in March, reduced the department’s staff by nearly 50%.

The issues with forgiveness tracking are part of broader turmoil. Eight million SAVE plan borrowers remain in involuntary forbearance due to court challenges. Many attempting to switch IDR plans face a 1.5 million application backlog. MOHELA suggests some reapply. The department also faces a growing backlog for PSLF Buyback, increasing from 49,000 in May to over 58,000 in June.

These systemic dysfunctions came as President Trump signed the “Big, Beautiful Bill,” which introduces sweeping changes. While PSLF is preserved, the bill repeals several IDR options, forcing many borrowers to change plans next year.

Advocates warn these changes will lead to substantial payment increases, potentially causing more disruptions.

RELATED CONTENT: New Federal Bill Overhauls Student Loan Repayment, Limits Borrower Options





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