Student Loan Forgiveness Error. Beginning Tuesday, November 22, 2022, over nine million student loan borrowers received emails confirming the approval of their student loan forgiveness applications—whether they had applied or not. Many borrowers who never submitted an application for the blanket forgiveness program but had contact information stored in the federal student loan database also received these erroneous emails.
Although the emails originated from the U.S. Department of Education, their content was inaccurate and inconsistent with federal law. According to the U.S. Department of Education, the misleading emails resulted from a vendor error.
The Blanket Student Loan Forgiveness Program Was Declared Unlawful
The student loan forgiveness error arose when the forgiveness program, designed to forgive $10,000 for all federal direct student loan borrowers and $20,000 for Pell Grant recipients, was declared unlawful by the U.S. Federal Courts on November 10, 2022. The ruling stated that the program violated the Administrative Procedures Act as it was formulated and executed by unelected officials who lacked direct accountability to the public.
Accenture Federal Services Responsible for the Student Loan Forgiveness Error
Accenture Federal Services (NYSE: ACN), a federal contractor headquartered in Ireland, provides services for multiple U.S. agencies, including the Department of Education and the Department of Defense. In April 2015, Accenture secured a 10-year, $966 million contract with the Department of Education to perform various functions, including the dissemination of mass emails to federal student loan borrowers.
On November 22, 2022, the U.S. Department of Education sent emails with the subject line: “Your Student Loan Debt Relief Application Has Been Approved.”
The body of the email acknowledged the program’s legal challenges and the administration’s commitment to continuing the fight for student loan borrowers. However, the misleading subject line led to mass confusion.
Official Corrections Issued by the U.S. Department of Education
On December 13, 2022, the Department of Education began sending correction emails to impacted borrowers. These emails carried the subject line: “CORRECTION: Status of Your Student Loan Debt Relief Application.”
The correction email addressed:
- The inaccurate subject line of the previous approval emails.
- The role of Accenture Federal Services in the error.
- Confirmation that the blanket student loan forgiveness program remains unlawful.
- A formal apology for the confusion caused.
What This Means for Hope Credit Borrowers
There have been no changes to income-based forgiveness programs, which have been part of federal law for over 25 years. The 10-, 20-, and 25-year income-based repayment (IBR) programs, established through federal legislationand negotiated rulemaking, remain unaffected by judicial challenges.
Hope Credit exclusively services these legally established programs, ensuring that clients receive accurate and up-to-date information.
Protecting Borrowers from Misinformation About Student Loan Forgiveness
Hope Credit has consistently educated its clients on how to avoid scams and verify loan-related communications. Historically, misleading student loan information has come from external sources. However, this incident involved misinformation directly from the U.S. Department of Education.
Hope Credit remains committed to assisting clients. If you receive a text, email, phone call, or direct mail regarding your federal student loans, reach out to your Hope Credit caseworker. We are happy to review the information and verify its consistency with current federal student loan policies.