9 million Americans mistakenly told they were approved for debt forgiveness
The error was made by Accenture Federal Services, a Department of Education contractor, CBS News reported.
The mistake comes at a time when '[a]bout 26 million people' have applied for debt relief, but are blocked from receiving forgiveness as the plan is tied up in courts.
9 million Americans mistakenly received an email late last month informing them they were approved for debt forgiveness.
The error was made by Accenture Federal Services, a Department of Education contractor, CBS News reported.
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The mistake comes at a time when “[a]bout 26 million people” have applied for debt relief, but are blocked from receiving forgiveness as the plan is tied up in courts.
Campus Reform previously reported that some judges argue the plan is unconstitutional.
The HEROES Act, which the Biden administration says gives the Executive branch power to forgive student loans, is “a law to provide loan assistance to military personnel defending our nation [and] does not provide the executive branch clear congressional authorization to create a $400 billion student loan forgiveness program,” wrote Texas judge Mark Pittman.
The Supreme Court is set to make a final decision on the law’s constitutionality in February, according to a report from CNN.
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While the case awaits a Court ruling, the Biden administration extended the pause on student loan repayments, which were originally set to resume in January, but will now be extended to late June of 2023.
Accenture, in a statement to CBS MoneyWatch, blamed the issue on “human error” citing that they “will review quality control measures to support accurate and timely communications to applicants in the Student Loan Debt Relief program.”
Campus Reform continues to track developments of Biden’s student debt forgiveness. Updates will be provided accordingly.