An Education Department loan analyst stated he was unaware of a student loan repayment glitch that led to an error in a legal filing. The glitch involved the National Student Loan Data System incorrectly recording zero income for some borrowers.
The accuracy of student loan repayment data is critical for borrowers seeking affordable payment plans and for the integrity of legal proceedings challenging these plans. Errors can impact borrowers' financial obligations and their ability to access promised benefits.
The U.S. Department of Education has corrected a legal filing in a lawsuit aimed at restoring benefits of the REPAYE student loan repayment plan. The correction addresses an error where the department had stated five borrowers reported $0 income, a detail that could weaken their case for restoring REPAYE.
In a revised declaration, loan analyst Anthony Lowery explained the mistake originated from an error in the National Student Loan Data Service (NSLDS). A system update in 2024 removed some older data, leading to certain borrowers' income information not being retained. Lowery stated he was unaware that the NSLDS system records a borrower's income as $0 when no data is present.
This incident is the latest in ongoing issues with student loan repayment systems. Borrowers are pushing for the benefits of REPAYE to be made available and to pause the transfer of borrowers off the SAVE plan. Starting July 1, SAVE borrowers began a 90-day period to transition to a new plan before being automatically moved to a standard plan with higher payments. The earliest such a transfer could occur is September 29, pending a ruling on a pause.
Beyond the NSLDS error, borrowers have reported various payment glitches, including incorrect bills and erroneous past-due notices, which the Education Department acknowledges and states it has been fixing.