Thousands of student-loan borrowers who received incorrect monthly payment amounts must reapply for income-driven repayment plans. The Department of Education cited an error in recalculating payments for those who manually updated family size information.
Thousands of student-loan borrowers are facing the burden of reapplying for repayment plans due to administrative errors, potentially impacting their financial planning and increasing stress during an already complex process.
The Department of Education has confirmed that approximately 6,000 student-loan borrowers must reapply for income-driven repayment plans due to an error that resulted in incorrect monthly payment amounts being issued. Federal Student Aid (FSA) sent emails to these borrowers, explaining that the error occurred when they manually updated their family size, which prevented FSA from using their on-file tax information to recalculate payments accurately.
Ellen Keast, the department's press secretary for higher education, stated that the issue has been addressed and most affected borrowers saw updated monthly payment amounts within days. The email advised borrowers to apply for the new Repayment Assistance Plan, which became available on July 1 as part of President Donald Trump's student-loan repayment overhaul.
This situation adds to the frustration experienced by many student-loan borrowers who have struggled to obtain accurate information regarding their payments and reach their servicers. Robin Binkley, a 38-year-old borrower, expressed concern over the difficulty of making significant financial decisions without reliable guidance.