Student Loan Servicer Pauses Payment Tracking, Causing Borrower Confusion
The U.S. Department of Education has halted payment count tracking for student loan forgiveness, leaving borrowers unable to view their progress on loan servicer accounts. MOHELA, a major servicer managing over 7 million federal student loan accounts, recently informed borrowers that it has temporarily disabled tracking for income-driven repayment (IDR) plan forgiveness counts. This move, linked to ongoing litigation, has sparked confusion and concern among borrowers, experts say.
MOHELA’s automated customer service message states, “Federal Student Aid has temporarily removed the forgiveness payment counts for income-driven repayment. Please visit StudentAid.gov for updates.” The pause follows legal challenges to the Biden administration’s Saving on a Valuable Education (SAVE) plan, introduced in 2023 to cap monthly payments at 5% of a borrower’s income, down from 10%. Republican-led lawsuits argued the plan was overly generous, burdening non-college-educated taxpayers. A February 2025 U.S. Court of Appeals ruling blocked the SAVE plan and parts of other IDR plans, prompting the Education Department to remove IDR applications from its website and comply with an injunction resuming interest accrual for SAVE plan borrowers starting August 1, 2025.
Betsy Mayotte, president of the Institute of Student Loan Advisors, described the situation as causing “significant confusion and anxiety” for borrowers. “The litigation over the SAVE plan, which courts have partially upheld, has forced this pause,” she said. Alyssa Dobson, director of financial aid at Slippery Rock University, called it “mass chaos,” noting that borrowers, particularly alumni in repayment, cannot access payment counts for programs like Public Service Loan Forgiveness (PSLF) through their servicers. “Borrowers rely on servicers for this information, and now they’re directed to StudentAid.gov, which is concerning,” she said.
A Department of Education spokesperson clarified that PSLF payment counts remain visible on StudentAid.gov and were unaffected by the injunction. A banner on borrower accounts reads, “A federal court injunction has blocked the SAVE plan and parts of other IDR plans, making payment counts and history temporarily unavailable.” The PSLF program, which forgives debt for public-sector workers after 120 qualifying payments, continues unaffected.
The pause may stem from the SAVE litigation, which halted regulations allowing certain deferment and forbearance periods to count toward forgiveness. Mayotte explained, “The injunction stopped these periods from being counted post-February, so the Department had to pause the counter to either await the litigation’s outcome or reprogram it.” This leaves borrowers unable to adjust IDR plans if they can’t afford standard rates.
Dobson emphasized the stress this causes, saying, “Borrowers made life decisions based on these programs, and now they’re worried about their future.” The lack of clear guidance is heightening concerns and impacting borrowers’ mental health, she added.
As the Trump administration pushes to dismantle the Department of Education and reverse Biden-era forgiveness policies, the uncertainty surrounding student loan repayment plans continues to grow, leaving millions of borrowers in limbo.
