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Millions Of Student Debt Forgiveness Applicants Get False Good News Email

According to reports, approximately 9 million applicants for President Joe Biden’s student loan forgiveness program received emails erroneously stating that their requests for debt relief had been granted.

The Department of Education forwarded emails last month with the wrong subject line informing recipients that their requests for debt relief had been approved. As the administration waits for the outcome of legal challenges, decisions on the applications have been put on hold. The email was accurate for the rest of it.

In a fresh email sent on Tuesday that CNN has examined, the Education Department issued an apology for the error. It ascribed the error to a “vendor.”

The administration is no longer accepting new applications because courts continue to block Biden’s plan, which would write off up to $10,000 per applicant earning up to $125,000 and up to $20,000 for Pell Grant recipients.

The department’s email to 9 million applicants this week stated, “We have received your application but are unable to review your eligibility due to ongoing litigation.” If and when we win the case in court, we will keep your application information and review your eligibility.

Before the plan was suspended, about 26 million people submitted applications for student debt forgiveness. According to the department, about 16 million applications have been approved. Despite the court challenges, no real relief has been given.

Two distinct cases opposing Biden’s plan have been accepted for hearing by the Supreme Court. In a case brought by six Republican-led states that challenge Biden’s executive authority to grant the debt relief, the justices are scheduled to hear arguments this winter.

According to CNN, the justices decided on Monday to hear a second case involving two student loan borrowers who didn’t qualify for Biden’s plan.

In order to give the Supreme Court enough time to rule on the case brought by the GOP states, Biden extended the suspension of student loan payments last month until June 30. If the second case would have an impact on that timeline is unknown.


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