High Country Times

Education and the Workforce Committee Chairwoman Virginia Foxx has released a report criticizing the Biden-Harris administration's approach to student loan forgiveness, specifically targeting the borrower defense program. According to Chairwoman Foxx, "the Biden-Harris administration has refused to admit that its student loan schemes are illegal," adding that the courts have seen through these actions.

The report alleges that the U.S. Department of Education has misused a process meant for students affected by fraudulent school practices, turning it into a mechanism for what is described as illegal mass debt forgiveness. It claims that nearly $18 billion in taxpayer funds were approved for borrower defense discharges without proper adherence to legal standards.

Key findings from the report include allegations of mass approval of borrower defense claims and neglect of statutes of limitation and Federal Claims Collection Standards. The report also criticizes the interpretation of settlement and compromise authority under the Higher Education Act.

The report traces its origins back to changes made during the Obama-Biden administration in 2015, which led to an increase in borrower defense applications from 59 claims over two decades to over 300,000. It suggests this set a precedent continued by the current administration.

Chairwoman Foxx has taken various actions related to this issue over recent years, including subpoenaing Secretary Miguel Cardona in October 2023 for documents on borrower defense and urging intervention from the Department of Justice in May 2022 regarding due process concerns.