Trump rolls back Biden-era student loan forgiveness credits

The Trump administration is reversing certain credits granted under President Biden that counted toward student loan forgiveness, Politico reports. The credits affected borrowers in the Public Service Loan Forgiveness program and income-driven repayment plans whose accounts had been mishandled. Some borrowers had received up to 12 months of additional credit.

Education Department spokesperson Ellen Keast said the rollback is part of fixing coding errors from the earlier rollout under the Biden administration. She called it a mistake left by the previous administration. A former Biden-era official acknowledged the agency struggled with existing data issues when the credits were introduced in 2024.

For affected borrowers, the date for debt forgiveness will be pushed further. Julia Barnard, former student loan ombudsman for the Consumer Financial Protection Bureau, called the situation "profoundly cruel." The department says it has resolved the problem and notified most borrowers about updated payment counts.