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9 million student-loan borrowers are now receiving correction emails after mistakenly being told last month they were approved for debt relief

Dec 14, 2022, 05:38 IST
Business Insider
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  • 9 million student-loan borrowers mistakenly received a November email saying they were approved for debt relief.
  • Correction emails started going out to the impacted borrowers this week.
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Millions of student-loan borrowers should keep an eye out for an updated email from the Education Department coming their way.

Insider was the first to report two weeks ago that on November 22-23, nine million student-loan borrowers received an email with an incorrect subject line informing them that their debt relief had been approved. It should have stated: "Update on Student Loan Debt Relief."

This error was made by Accenture Federal Services, a contractor of the Education Department that sent out those emails.

Starting this week, correction emails have started arriving in the impacted borrowers' inboxes. According to an email reviewed by Insider, the new subject line reads: "CORRECTION: Status of Your Student Loan Debt Relief Application."

"Due to a vendor error, you recently received an email with a subject line indicating your application for the one-time Student Loan Debt Relief Plan had been approved," the email stated. "The subject line was inaccurate. The body of the previous email was accurate."

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Screenshot of the first part of the student debt correction email, as provided by a borrower.Ayelet Sheffey

"We have received your application but are not permitted to review your eligibility because of ongoing litigation," the email continued. "We will keep your application information and review your eligibility if and when we prevail in court."

An Education Department spokesperson told Insider that of the nine millions borrowers, some are receiving a correction email clarifying the initial subject line was inaccurate, and some will receive an email noting they should not have received any email in the first place.

A spokesperson previously told Insider in a statement that "communicating clearly and accurately with borrowers is a top priority of the Department."

"We are in close touch with Accenture Federal Services as they take corrective action to ensure all borrowers and those affected have accurate information about debt relief," the person said.

Still, no student-loan borrower will see a reduction to their balance anytime soon. Two federal courts have so far blocked the implementation of President Joe Biden's plan to forgive up to $20,000 in student debt for federal borrowers, and while the Supreme Court agreed to hear arguments on the case early next year, the legal proceedings could take months.

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To ensure borrowers would not have to resume payments without the relief they were promised, Biden recently extended the student-loan payment pause through June 30 or whenever the lawsuits are resolved, whichever happens first. His administration continues to express confidence that the broad debt relief will ultimately prevail in court.

"This program is necessary to help over 40 million eligible Americans struggling under the burden of student loan debt recover from the pandemic and move forward with their lives," White House Press Secretary Karine Jean-Pierre wrote on Twitter last week. "The program is also legal, supported by careful analysis from administration lawyers. @POTUS will keep fighting against efforts to rob middle class families of the relief they need and deserve."

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