The Defense of Freedom Institute (DFI) wrote a letter to U.S. Department of Education Inspector General Sandra Bruce Wednesday asking for an immediate “pause” to student loan cancellation applications until necessary precautions are implemented to prevent waste, fraud and abuse.
“DFI writes because we are deeply concerned that the Biden administration’s recently announced student loan debt cancellation policy lacks basic safeguards against waste, fraud, and abuse,” the letter reads.
“Some of these safeguards could be easily implemented—such as directing borrowers to give the Department permission to confirm income through Internal Revenue Service (IRS) records during the application process,” it added.
The DFI criticized the Education Department’s current measure allowing for “self-certifications” to verify eligibility for the cancellation program, noting the potential for waste to come from the allotted $430 billion cost.
