Millions of Student Loan Borrowers Received Erroneous ‘Approved’ Emails Amid Debt Relief Program Freeze

Biden Administration student loan debt relief — New Biden Student Loan Forgiveness Plan Targets Borrowers In Financial Distress, Photo by Investopedia, is licensed under CC BY-SA 4.0

Around nine million Americans who applied for student loan debt relief under the Biden Administration’s forgiveness program recently received an email from the Department of Education with a subject line that mistakenly indicated their student debt had been canceled.

The error, first reported by Insider, has added a layer of confusion for borrowers navigating the uncertain status of the debt relief initiative. The program, which aimed to provide significant financial assistance to millions, is currently on hold due to ongoing legal challenges.

The incorrect emails were sent on November 22 and 23. While the subject line inaccurately stated, “Your Student Loan Debt Relief Plan Has Been Approved,” the actual content within the emails correctly informed recipients that their applications had been accepted but that the approval process was paused.

The responsibility for the erroneous communication lies with Accenture Federal Services, a contractor working for the Education Department. Accenture will be issuing new emails in the coming days to correct the inaccurate subject line and provide clearer information.

Accenture corporate communications — Accenture Federal Services Cuts Ribbon and Launches Apprenticeship Program in St. Louis, Photo by Greater Saint. Louis, Inc., is licensed under CC BY-SA 4.0

Stacey Jones, the senior managing director and head of corporate communications for Accenture, acknowledged the mistake. She stated the company “regrets the human error that led to an email being sent to a number of student loan debt relief applicants with an inaccurate subject line.”

Jones also confirmed the dates the emails were sent, noting, “The email was sent on behalf of the Department of Education on Nov. 22 and 23.” She added that Accenture Federal Services would be reviewing quality control measures in conjunction with the Department to support accurate and timely communications for those in the Student Loan Debt Relief program.

The Education Department echoed the importance of clear communication with borrowers. A spokesperson for the Department conveyed this sentiment, stating, “Communicating clearly and accurately with borrowers is a top priority of the Department.

The spokesperson further noted the close coordination with the contractor to rectify the situation. “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,” the spokesperson said via email.

This communication error occurs while the core function of the debt relief program remains frozen. According to the DOE, no applications have been approved since October. This halt was initiated by rulings in two lawsuits filed against the agency challenging the legality of the program.

Prior to the court-ordered pause on processing, about 26 million people had submitted applications for relief of federally backed student loans. Of these applications, 16 million had been approved by the Department of Education before the legal challenges effectively stopped the process.

The content of the correction emails now being sent addresses the inaccurate subject line directly. An email reviewed by Insider indicates the new subject line is “CORRECTION: Status of Your Student Loan Debt Relief Application.”

The body of the correction email clarifies the situation for recipients. It states, “Due to a vendor error, you recently received an email with a subject line indicating your application for the one-time Student Loan Debt Relief Plan had been approved. The subject line was inaccurate. The body of the previous email was accurate.”

The correction email further reiterates the program’s current status, noting, “We have received your application but are not permitted to review your eligibility because of ongoing litigation.” It assures applicants that their information is retained and eligibility will be reviewed “if and when we prevail in court.”

A Department of Education spokesperson clarified that among the nine million borrowers who received the incorrect email, some are receiving the correction email regarding the subject line inaccuracy, while others who should not have received any email at all will receive a notification to that effect.

The path forward for the debt relief program hinges on the outcome of the legal challenges. The U.S. Supreme Court has agreed to hear arguments in the case brought by six states that contend President Biden lacks the authority to forgive commercial debt on this scale.