9 Million Student-Loan Borrowers Are Misunderstoodly Informed About Debt Relief Approval

• In November, 9 million student loan borrowers received an email with the subject line “Debt relief approved”
• It should have stated the applications had been received, not approved — an error made by an Education Department contractor.
• The email’s content was correct, but the contractor will soon issue corrections.

Millions of student-loan borrowers are set to receive an email with the latest information on their debt relief.

Between November 22nd and 23, approximately 9,000,000 borrowers received an email with the subject line: “Your Student Loan Debt relief Application Has Been Approved” from President Joe Biden’s Education Department. However, that subject line was incorrect, Insider has learned — it was simply supposed to inform borrowers that their applications had been received with the subject line: “Update on Student Loan Debt Relief.”

Accenture Federal Services was the contractor that sent the email communications. Although the email contained accurate information and informed borrowers that debt relief was being held up in court and that loans cannot be discharged at the moment, Accenture Federal Services will send new emails to affected borrowers with a corrected subject line in the coming days.

Accenture’s senior managing director and head for corporate communications, Stacey Jones, said in a statement to Insider that the company “regrets” the human error that resulted in an email being sent to student loan debt relief applicants with an incorrect subject line.

She continued, “The email was sent by Accenture Federal Services on Nov. 22nd and 23.” Accenture Federal Services, in close collaboration with the Department will review quality control measures to ensure timely and accurate communication to applicants under the Student Loan Debt Relief program.

Insider was also informed by a spokesperson from the Education Department that communicating clearly and accurately with borrowers was a top priority of their Department.

Accenture Federal Services is in close contact with us as we take corrective actions to ensure that all borrowers and those who are affected have accurate information about debt relief.

The department had previously indicated that 26,000,000 student-loan borrowers had submitted applications for relief from debt. Two legal decisions have blocked the implementation and closed the possibility of submitting an application since October. A Texas judge ruled in favor of the relief last month. saidBiden’s plan for student debt cancellation is illegal. The 8th Circuit Court of Appeals ruled that it was illegal. decidedThe October relief will continue as usual despite the temporary pause it placed on it in October.

Since its inception, Biden’s Justice Department was a success. askedThe Supreme Court will intervene in both cases. The Court will meet on Thursday agreedIt will hear arguments for the lawsuit that was brought to the 8th Circuit by the plaintiff in February. However, it has not yet specified how it will handle the Texas case it ruled on. It is possible that the Supreme Court will combine both cases and hear arguments for them in the early part of next year.

Biden has recently responded to the lawsuits. extended the pause on student-loan payments through June 30, or whenever the lawsuits are resolved — whichever comes first. The administration continues to show confidence in its ability to prevail in court. It stands behind the authority it used under HEROES Act 2003 to enact temporary debt relief for millions.

Miguel Cardona, Education Secretary: “Our student debt relief programme is necessary to help forty million eligible Americans struggling under student loan debt recover the pandemic.” wroteTwitter, Thursday. “That’s 40M borrowers that chased the American dream by higher education. I look forward to SCOTUS hearing my case.”