Student loan forgiveness has taken center stage in national headlines as the Department of Education recently halted payment count tracking for millions of borrowers. This sudden move has left many Americans uncertain about their progress toward debt relief, just as sweeping legislative and administrative changes reshape the entire student loan landscape.
What’s Happening With Student Loan Forgiveness?
Borrowers logging into their loan servicer accounts are finding that payment count tracking—essential for monitoring eligibility for student loan forgiveness—has been temporarily disabled. The Department of Education, through major servicer MOHELA, announced the suspension of this feature for both Income-Driven Repayment (IDR) and Public Service Loan Forgiveness (PSLF) programs.
For many, this means they can no longer see how close they are to having their loans forgiven after years of payments. The Department attributed the removal to technical corrections and legal challenges, but the timing coincides with significant federal policy shifts and court rulings.
Key Points Summary
- Payment count tracking for forgiveness paused nationwide
- Borrowers in IDR and PSLF programs most affected
- Recent court rulings and new legislation drive changes
- Interest resumes for SAVE plan borrowers on August 1, 2025
- Only IBR plan forgiveness remains fully accessible
Why Was Payment Count Tracking Halted?
The Department of Education stated that the pause is necessary to address inaccuracies and comply with recent court decisions. In February 2025, a federal court ruled that forgiveness under the SAVE, PAYE, and ICR plans was not authorized by Congress. As a result, the Department has blocked forgiveness under these plans and stopped updating payment counts for affected borrowers.
An automated message from MOHELA confirms:
“Federal Student Aid has temporarily removed the forgiveness payment counts from StudentAid.gov for Public Service Loan Forgiveness and Income-Driven Repayment. Unfortunately, our representatives do not have any additional information related to your forgiveness counts. Please continue to visit StudentAid.gov for updates.”
Student Loan Forgiveness Payment Count Temporarily Halted By Department Of Education
This halt in tracking has created confusion and frustration. Many borrowers who believed they were months away from forgiveness now face uncertainty, as their payment histories are not being updated or displayed. The PSLF tracker, while technically still accessible, has not shown updated counts for months, leaving public service workers in limbo.
Borrowers have reported that payment counts have been stuck since late 2024, despite continued qualifying payments. Some attribute these issues to mass layoffs and system dysfunction within the Department of Education, which has struggled to keep up with the volume of updates and new legal requirements.
Major Legislative and Policy Shifts
The landscape for student loan forgiveness shifted dramatically with the passage of the “Big Beautiful Bill” in early July 2025. Signed into law by President Trump, the bill overhauls federal student loan programs:
- Eliminates several repayment plans (including PAYE, ICR, and SAVE) for new loans after July 1, 2026
- Caps total federal student loan borrowing at $257,500 for individuals (excluding parent PLUS loans)
- Ends economic hardship deferment for new loans from July 2025
- Reduces forbearance options to a maximum of nine months within any 24-month period
- Requires borrowers in discontinued plans to switch by July 1, 2028
Additionally, the SAVE plan’s interest subsidy ends on August 1, 2025, meaning interest will resume accruing for those borrowers—even as their payments remain paused.
Table: Student Loan Forgiveness Program Status (July 2025)
What Should Borrowers Do Now?
The Department of Education advises borrowers to monitor StudentAid.gov for updates and consider switching to the Income-Based Repayment (IBR) plan, which remains available for forgiveness. However, processing delays and ongoing system issues mean that even IBR applicants may experience uncertainty.
Financial experts recommend:
- Keeping detailed personal records of payments and qualifying employment
- Reviewing all communication from loan servicers
- Consulting with a student loan advisor before making changes to repayment plans
Looking Ahead for Student Loan Forgiveness
As the student loan system undergoes historic changes, millions of borrowers are left waiting for clarity. The Department of Education has pledged to restore forgiveness tracking tools, but no timeline has been provided. For now, staying informed and proactive is the best strategy.
Have you been affected by the recent changes to student loan forgiveness? Share your experiences or questions in the comments below—your voice matters as the conversation continues to evolve.