Student Loan Forgiveness Delays Widen After FSA Staff Falls 46%
Updated
Updated · POLITICO · Aug 16
Student Loan Forgiveness Delays Widen After FSA Staff Falls 46%
1 articles · Updated · POLITICO · Aug 16
Summary
Public Service Loan Forgiveness processing has slowed as borrowers risk losing credit toward cancellation, extending waits for relief that has already erased $90.6 billion for 1.2 million people.
FSA staffing fell to 777 from 1,433 between January and December 2025, after layoffs hit teams that checked servicer data and borrowers’ progress toward forgiveness.
A GAO report said the office stopped reviewing borrower-servicer call quality in February 2025 because of limited capacity, though the Education Department said it uses other methods to monitor servicers.
More than 2 million borrowers had filed PSLF applications by April, and education workers are especially exposed — over 600,000 recipients have come from that sector.
The American Federation of Teachers warned the data problems could force public service workers to pay for months or years longer and said it is weighing litigation.