Biden’s New Student Loan Rule Would Make Even Non-College-Educated Taxpayers Responsible for Billions in College Debt
Gerard Scimeca
August 11, 2022
Most Americans have been conditioned to accept some level of incompetence and inefficiency from government – but not to the extent that federal employees paid by our tax dollars simply admit that they are fundamentally incapable of doing their jobs. Yet shockingly, this is what we are now witnessing with the Department of Education’s failed and convoluted attempt to process claims for student loan cancellation.
In June, the DOE discharged $5.8 billion in federal student loans owed by more than 560,000 borrowers who attended campuses operated by Corinthian Colleges. The announcement was spun by some as a victory for students, but in fact it reflected the DOE’s embarrassing incompetence in adjudicating claims alleging fraud in the procurement of student loans. The department simply rubber-stamped over half a million applications en masse to clean out its “to do” box. As a result, a federal judge forced the DOE to settle thousands of cases it had not previously processed. Since the June announcement, more than 60,000 additional loan requests have been filed, and the floodgates remain open for another 30 months.
