Correction Emails Sent to 9 Million Student-Loan Borrowers

The Education Department has started sending updated emails to millions of student-loan borrowers who received an incorrect email on November 22-23 due to a mistake made by contractor Accenture Federal Services. The new subject line of the correction emails reads: “CORRECTION: Status of Your Student Loan Debt Relief Application”.

The new email says that an error by a vendor caused an email to be sent to you with a subject line saying that your application for the Student Loan Debt Relief Plan had been approved. However, this subject line was incorrect. The body of the previous email was accurate. The email goes on to say that the company has received your application but cannot review your eligibility for the plan because of ongoing litigation. If they prevail in court, they will review your eligibility and consider your application at that time.

According to a spokesperson for the Education Department, some borrowers who received the initial email with the incorrect subject line will receive a correction email, while others will be told that they should not have received any email in the first place. The spokesperson added that the department is working closely with Accenture Federal Services to correct the error and make sure that all affected borrowers have accurate information about debt relief. The department considers clear and accurate communication with borrowers to be a top priority.

However, President Joe Biden’s plan to forgive up to $20,000 in student debt for federal borrowers has been blocked by two federal courts. The Supreme Court will hear arguments on the case early next year, but legal proceedings could take months, according to the CNBC report by Dan Mangan. To ensure borrowers do not have to resume payments without relief, Biden extended the student-loan payment pause through June 30 or until the lawsuits are resolved. His administration is confident that the broad debt relief will ultimately prevail in court.