- Biden canceled up to $20,000 in student debt for federal borrowers on Wednesday.
- Student-loan company Nelnet told borrowers to "hold off on calling" to get more information.
Millions of student-loan borrowers want to know if there are any updates following President Joe Biden's announcement of debt cancellation. A student-loan company has a message for them: We don't know any more than you do.
On Wednesday, Biden made two major announcements borrowers have been waiting months for — a four-month extension of the student-loan payment pause through December 31, and up to $20,000 in student-loan forgiveness for federal borrowers. While the Education Department released preliminary information on the details of the relief, a lot of questions are still lingering, like how borrowers can apply for the relief and how long it will take. Many of them are taking those questions to the companies that service their loans.
But Nelnet — one of the largest student-loan companies — wrote on Twitter that it knows just as much as borrowers know at this point.
"We know you're trying to find out if you're eligible for student loan cancellation," the company wrote. "Please hold off on calling us as we continue to experience heavy phone volume. We do not have any more details on who is eligible for loan cancellation than what was announced by President Biden."
—Nelnet (@Nelnet) August 25, 2022
A Nelnet spokesperson did not immediately respond to Insider's request for comment.
Leading up to the announcement, lawmakers and student-loan companies alike were warning of issues that could arise with Biden deciding on relief with such short notice. His announcement came just one week before student-loan payments were previously scheduled to resume on August 31. Scott Buchanan, the executive director of the Student Loan Servicing Alliance — a group that represents federal loan servicers — wrote a letter to Education Secretary Miguel Cardona on Monday saying that any decision at that point "risks operational disruptions."
"Ten days is grossly insufficient notice to reprogram the massive and interwoven systems that handle loan accounts, provide appropriate system testing time, and also construct and implement revised communication plans," he said.
Disruptions have already arisen — right after the president's announcement, many servicer sites were down as borrowers were scrambling to access information and see updates to their accounts. The Education Department has maintained that further details will be conveyed in the coming weeks, including how borrowers can apply for relief and lower their monthly payments, and in the meantime, borrowers can sign up for updates at this link.