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Large Scale Fraud In-The-Making at Department of Education

Foxx Demands Answers from Cardona on How ED Will Remedy Fraud Concerns

WASHINGTON – The Government Accountability Office (GAO) recently briefed the Committee on Education and the Workforce on the massive potential for fraud if the Supreme Court permits the Department of Education to move forward with Biden’s student loan scam. Education and the Workforce Committee Chairwoman Virginia Foxx (R-NC) is outraged by the lack of fraud prevention GAO uncovered, which reinforces the Committee’s long-held concern that the Department is willing to provide debt cancellation to as many borrowers as possible regardless of income. In response to this shocking information, Chairwoman Foxx sent a letter to Education Secretary Cardona demanding at the very least that the agency implement GAO’s draft recommendations prior to discharging any loans.

Chairwoman Foxx issued the following statement on the Department’s reckless disregard for its fiscal responsibilities that opens the door for large-scale fraud:

“If the Department is unwilling to implement any meaningful risk management, it will put millions of hardworking taxpayer dollars at risk if the Supreme Court fails to strike down the administration’s student loan scheme. GAO’s draft analysis also raises additional questions about the Department’s ability to fulfill its basic management responsibilities.

“What the Committee heard raised more questions about the accountability of Biden’s Education Department. It has turned a blind eye to potential fraud and is willing to discharge loans of borrowers who may have never qualified for this illegal debt cancellation scheme. The Department of Education is the classic example of an agency run amok.

“Secretary Cardona, enough is enough. The American people deserve better.”

To read the full letter, click here.
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