Education and the Workforce Committee Chairwoman Virginia Foxx (R-NC) today released a critical report on one of the Biden-Harris administration’s largest student loan forgiveness schemes: borrower defense.
“There’s no surprise here: the Biden-Harris administration has refused to admit that its student loan schemes are illegal, and instead has tried to stretch every possible law to deliver on its outrageous campaign promise,” said Chairwoman Foxx. “Thankfully, the courts have seen through these shams, and in eighteen days, the jig will finally be up.”
The report examines how the U.S. Department of Education distorted a process intended to provide recourse to students who attended schools that are found to have engaged in fraudulent misrepresentation. Instead, the Department has weaponized the process to provide illegal en masse debt “forgiveness.”
Read the full report here.
KEY FINDINGS:
- The Department approved en masse borrower defense “group” claims in order to illegally approve nearly $18 billion in taxpayer funds for borrower defense discharges.
- A whistleblower came forward to the Committee and provided extensive evidence that statutes of limitation governing refunds were routinely ignored and Federal Claims Collection Standards were not followed, again, with the purpose of approving en masse debt cancellation.
- The Department once again distorted the meaning and Congressional intent behind settlement and compromise authority granted by the Higher Education Act.
