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

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.

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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.

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