Email error leaves millions of student loan relief applicants 'in limbo': report

Email error leaves millions of student loan relief applicants 'in limbo': report
Image via Shutterstock.
Economy

Millions of student loan borrowers received an email from the Federal Student Aid this week, reversing the previous approval on their August student loan forgiveness applications, NPR reports.

The previous email borrowers received last month included confirmation that up to $20,000 would be forgiven, as a part of President Joe Biden's one-time plan. But, now the Federal Student Aid says those emails were a mistake. Biden's plan was also blocked last months by a Texas judge, and the Supreme Court will be hearing the case in February, at the earliest.

According to the White House, upwards of 16 million borrowers received loan relief, but they’re not sure how many received the reversal email.

READ MORE: Joe Biden extends student loan payment freeze as 'baseless political lawsuits' threaten aid

According to NPR, Carolina Rodriguez with the Education Debt Consumer Assistance Program says many applicants are questioning what to do during the “waiting period.” She says that many of their clients applied to other forgiveness programs in the past and are thinking the reversal is geared towards those applications. A common question from applicants has been around whether their other student loan forgiveness, such as from public service loan forgiveness, will be reversed, too.

A spokesperson for the Department of Education says "communicating clearly and accurately with borrowers is a top priority” for the agency. "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."

Deputy executive director and managing counsel for the Student Borrower Protection Center, Persis Yu, says this will leave borrowers “in limbo” until the Supreme Court hears the case next year.

READ MORE: 'Profits over people': House Democrat hammers Republicans for suing to stop student loan relief

Understand the importance of honest news ?

So do we.

The past year has been the most arduous of our lives. The Covid-19 pandemic continues to be catastrophic not only to our health - mental and physical - but also to the stability of millions of people. For all of us independent news organizations, it’s no exception.

We’ve covered everything thrown at us this past year and will continue to do so with your support. We’ve always understood the importance of calling out corruption, regardless of political affiliation.

We need your support in this difficult time. Every reader contribution, no matter the amount, makes a difference in allowing our newsroom to bring you the stories that matter, at a time when being informed is more important than ever. Invest with us.

Make a one-time contribution to Alternet All Access, or click here to become a subscriber. Thank you.

Click to donate by check.

DonateDonate by credit card
Donate by Paypal
{{ post.roar_specific_data.api_data.analytics }}
@2022 - AlterNet Media Inc. All Rights Reserved. - "Poynter" fonts provided by fontsempire.com.