Millions wrongly told they were approved for student loan forgiveness, officials say
Millions of borrowers were wrongly informed that their student loan relief was approved in an email mishap, officials say.
Between Nov. 22-23, 9 million student loan relief applicants received an email with the subject line “Your Student Loan Debt Relief Application Has Been Approved,” but that was wrong, Insider reported.
Instead, the applicants were supposed to receive an email with the subject line “Update on Student Loan Debt Relief,” informing them only that their application for forgiveness had been received.
The contents of the email, which told borrowers that loans could not yet be discharged because the plan by President Joe Biden’s administration is currently stuck in court, were correct, according to Insider.
Accenture Federal Services, a government contract with the Department of Education, is responsible for the mistake, according to CBS News. Now, the department says it is working closely with Accenture to fix the error.
“Communicating clearly and accurately with borrowers is a top priority of the Department,” a spokesperson for the department told CBS MoneyWatch in an email.
Now, Accenture plans on sending a corrected email to borrowers, a company spokesperson told McClatchy News in an email.
“Accenture Federal Services regrets the human error that led to an email being sent to a number of student loan debt relief applicants with an inaccurate subject line,” the spokesperson said.
The Department of Education did not immediately respond to McClatchy News’ request for comment.
In the email, borrowers were told that their applications have been sent to their loan servicers for approval, according to a copy obtained by McClatchy News.
“Your application is complete and approved, and we will discharge your approved debt if and when we prevail in court. We will update you when there are new developments,” the email said.
Loan relief stuck in legal limbo
After months of legal battles, the Supreme Court said that it would take up Biden’s student loan forgiveness plan in February 2023. Until then, the plan will remain blocked.
The plan would grant borrowers who make less than $125,000 debt cancellation of up to $10,000. Pell Grant recipients could see $20,000 in forgiveness. Overall, more than 40 million Americans would be impacted by the plan.
While the plan remains in limbo, Biden has extended the freeze on student loan payments for the eighth time.
“I’m confident that our student debt relief plan is legal. But it’s on hold because Republican officials want to block it,” Biden said in a Nov. 22 tweet.
Biden extends student loan payment freeze. What to know as forgiveness stuck in courts
Biden’s student loan plan blocked again by an appeals court. Here’s what may happen now
Some student loans aren’t eligible for relief anymore. How to know if yours still qualify
