Biden Admin’s Education Secretary Flagged for Fraud in Student Loan Bailout Scheme

After the Education Department announced its student loan repayment plan, a lot of Republican figures expressed their concerns about how the plan would unfold. More recently, its effectiveness has been questioned.

More specifically, the department’s secretary, Miguel Cardona, has come under fire for any potential waste and fraudulent action that may happen because of it. His lack of a solid response is only going to make matters worse.

It’s never smooth sailing with Biden

James Comer teamed up with Education and Workforce Committee chairwoman Virginia Foxx, sending a letter to the Education Department. This was done in order to question Cardona on his plans for dealing with any losses or fraud, should they come up.

A lot of this is due to the student loan repayment plan requiring no verification measures regarding one’s income. That could leave taxpayers exposed to financial waste, fraud, and abuse.

Even though payments have yet to resume after they’ve been halted by the Democrats, the plan in question would allow for those with lower income to also make lower payments on their loan.

With this in mind, it’s easy to notice just how easy this plan is to abuse, seeing as everyone will be verifying their income on their own, essentially leaving the bag in taxpayers’ hands.

The US economy won’t handle much more

Comer pressed on, demanding Education Department Secretary Cardona provide answers regarding how he’s planning on regulating these payments to prevent fraud and misuse from happening.

On top of this, Comer is most concerned with the fact that the Education Department designed a plan that would have hardworking, honest Americans paying for every student loan borrower who chooses to misrepresent their income.

This is mainly due to how many abused the Paycheck Protection Program at the height of the COVID-19 pandemic.

This also had similar self-certification measures, with both Comer and Foxx claiming this plan to be a testament to how unprepared the department is to restart the repayment process.

Instead of providing clear answers and a solution to this impending issue, Cardona merely shuffled a few words around, “assuring” the emergency period is over and borrowers could soon begin restarting their payments.

Our economy is in a sad state. Wasting even more taxpayer money is the last thing we need right now.