A problem that needed to be fixed
Income-Driven Repayment (IDR) plans allow student loan borrowers to make monthly payments on their student loans based on their income and family size and have any remaining balance on their loans canceled after 20-30 years of repayment. However, there have been huge problems with how the IDR plans were managed and how records were kept. Because of these problems, before 2020, only a handful of people had their loans forgiven through the IDR program. In addition, similar problems prevented millions of eligible people from having their loans forgiven through Public Service Loan Forgiveness.
To help fix these issues, in 2022, the Department of Education announced a one-time payment count adjustment program to give student loan borrowers credit toward forgiveness through IDR or PSLF for past time in repayment. That adjustment was completed in late 2024 and likely helped millions of borrowers get one step closer to loan forgiveness.
The one-time payment count adjustment was designed to fix past problems that prevented people from getting credit toward student loan forgiveness—it only applies to past time in repayment. It does not apply to future payments or change what borrowers must do to continue earning IDR credit.
What time received credit toward IDR and PSLF as a result of the payment count adjustment?
As a result of the payment count adjustment, borrowers should have received credit toward IDR forgiveness for any time in repayment between July 1, 1994 and when the account adjustment was applied in 2023 or 2024, even if the borrower was not enrolled in an IDR plan. This time should also count toward PSLF, as long as you meet the other requirements for PSLF. See our page on PSLF for more information on how the IDR account adjustment will help PSLF borrowers.
This means that borrowers should get credit for all of the following time toward IDR or PSLF loan forgiveness, so long as the time occurred between July 1, 1994 and when the adjustment was applied to their account in 2023 or 2024:
- any months in a repayment status, no matter how much was paid, or what repayment plan you were on;
- 12 or more months of consecutive forbearance, or 36 or more months of total forbearance (you can also submit a complaint to the Federal Loan Ombudsman to ask that shorter periods of forbearance be counted if your loan servicer told you that you weren’t eligible for IDR);
- any months spent in economic hardship or military deferments after 2013;
- any months spent in any deferment (except in-school deferment) prior to 2013; and
- for consolidated loans, any time in repayment for the loans before they were consolidated.
Unfortunately, not all time counted toward the payment count adjustment. The following did not count toward IDR or PSLF loan forgiveness:
- time in default;
- in-school deferments and most grace periods after the borrower left school; and
- any months where your loans were subject to a court judgment.
What loans were eligible for the payment count adjustment?
All Direct Loans and FFEL or Perkins loans owned by the Department of Education should have been included in the account adjustment, including Parent PLUS loans. Borrowers did not have to apply for the payment count adjustment; it should have been applied to all accounts held by the Department.
Commercially-held FFEL Loans, Perkins Loans that are held by a school, and Health Education Assistance Loans (HEAL) were not eligible for the IDR account adjustment unless they were consolidated into a new Direct Consolidation Loan before June 30, 2024.
How will I know what credits I received under the payment count adjustment?
The Department of Education has completed the payment count adjustment, and most borrowers should have received the credit they were eligible for under the adjustment.
For a short time, you were able to see your qualifying credits toward IDR loan cancellation on your Dashboard if you logged into your account on studentaid.gov. However, the government has since removed that feature. You can still see your qualifying credits for PSLF on your studentaid.gov account. You can also request an update on your qualifying credits toward IDR and PSLF from your loan servicer or by filing a complaint with the Federal Student Aid Feedback Center.
If there is a mistake with your payment counts, you should contact your loan servicer and file a complaint.
More information on the payment count adjustment
More information on the account adjustment can be found on the Department of Education’s website.
NCLC and the Protect Borrowers wrote a series of articles with more details on the account adjustment. See these articles here:
- The Income-Driven Repayment (IDR) Account Adjustment: Moving Millions of Borrowers Closer to Cancellation
- The Income-Driven Repayment Account Adjustment Effectively Extends Many of the Flexibilities Announced As Part of the Public Service Waiver That Expired On October 31, 2022
- A Major Flaw in the IDR Account Adjustment: Excluding Time in Default
