{"id":2359132,"date":"2024-10-24T16:32:01","date_gmt":"2024-10-24T20:32:01","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/obama-and-biden-oversaw-billions-in-student-loan-forgiveness-review-finds-washington-examiner\/"},"modified":"2024-10-24T16:34:51","modified_gmt":"2024-10-24T20:34:51","slug":"obama-and-biden-oversaw-billions-in-student-loan-forgiveness-review-finds-washington-examiner","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/obama-and-biden-oversaw-billions-in-student-loan-forgiveness-review-finds-washington-examiner\/","title":{"rendered":"Obama and Biden oversaw billions in student loan forgiveness, review finds &#8211; Washington Examiner"},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"&quot;\"><div class=\"counts mashsbcount\">28<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Fobama-and-biden-oversaw-billions-in-student-loan-forgiveness-review-finds-washington-examiner%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=2359132&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><p>A recent report from \u200bthe\u2063 Government Accountability Office reveals that the Obama and Biden administrations oversaw significant <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/democrats-push-for-student-debt-forgiveness-would-cost-taxpayers-millions\/\" title=\"Democrats push for student debt forgiveness, would cost taxpayers millions\">student loan forgiveness<\/a>, amounting to billions of dollars, through changes in federal regulations. As of April 2024, the Department of Education has \u2064forgiven a total of $17.2 billion in federal student loans, with most discharges occurring post-2015 following an increase in applications related to borrower defenses against misconduct by educational institutions. <\/p>\n<p>Critics,\u200c including Rep. \u200bVirginia Foxx, claim that these measures reflect government overreach and unfairly burden taxpayers. They argue that loan forgiveness initiatives disproportionately benefit those who have not yet repaid their loans, potentially worsening\u2064 the national debt. The report indicates that the Education Department has processed over 888,000 applications since the inception of these policies, with only 1% denied and many remaining pending as\u2063 of the report date.<\/p>\n<p>The\u200c issue escalated after the 2015 closure of Corinthian Colleges \u2064spurred policy changes aimed at streamlining the application process.\u200b However, <a href=\"https:\/\/amzn.to\/3YuVZYV\">subsequent administrations adjusted criteria affecting eligibility<\/a> for forgiveness. \u2063The most\u200c recent \u200bregulations, finalized in November 2022, established a new standard for all federal applications.  <\/p>\n<p class=\"readmore\">\n    <button onclick=\"showReadMore()\" id=\"readmorebtn\">Read more&#8230;<\/button>\n<\/p>\n<hr id=\"line\">\n<span id=\"more\"><\/p>\n<p><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><\/p>\n<div class=\"tdb-block-inner td-fix-index\"><span class=\"tdb-mobile-menu-button\"><i class=\"tdb-mobile-menu-icon td-icon-mobile\"><\/i><\/span><\/div>\n<div class=\"tdb-block-inner td-fix-index\"><span class=\"tdb-header-search-button-mob dropdown-toggle\" data-toggle=\"dropdown\"><i class=\"tdb-mobile-search-icon td-icon-search\"><\/i><\/span><\/div>\n<div class=\"tdb-block-inner td-fix-index\"><\/div>\n<div class=\"tdb-block-inner td-fix-index\"><span class=\"tdb-mobile-menu-button\"><i class=\"tdb-mobile-menu-icon td-icon-mobile\"><\/i><\/span><\/div>\n<div class=\"tdb-block-inner td-fix-index\">\n<div class=\"tdb-drop-down-search\" aria-labelledby=\"td-header-search-button\">\n<div class=\"tdb-drop-down-search-inner\">\n<form method=\"get\" class=\"tdb-search-form\" action=\"https:\/\/www.washingtonexaminer.com\/\"><\/form>\n<div class=\"tdb-aj-search\"><\/div>\n<\/div>\n<\/div>\n<p><a href=\"http:\/\/www.washingtonexaminer.com\/#\" role=\"button\" aria-label=\"Search\" class=\"tdb-head-search-btn dropdown-toggle\" data-toggle=\"dropdown\"><i class=\"tdb-search-icon td-icon-search\"><\/i><\/a><\/div>\n<div class=\"tdb-block-inner td-fix-index\"><\/div>\n<div class=\"tdb-block-inner td-fix-index\">\n<h1 class=\"tdb-title-text\">Obama and Biden oversaw billions in student loan forgiveness, review finds<\/h1>\n<div><\/div>\n<div class=\"tdb-title-line\"><\/div>\n<\/div>\n<div class=\"tdb-block-inner td-fix-index\"><\/div>\n<div class=\"tdb-block-inner td-fix-index\"><\/div>\n<div class=\"tdb-block-inner td-fix-index\">\n<div id=\"Brid_1843689\" class=\"tpd-featured-video bridtv\"><\/div>\n<p><strong>EXCLUSIVE &mdash; <\/strong>A change in federal regulations for <a href=\"https:\/\/www.washingtonexaminer.com\/tag\/student-loans\/\" target=\"_blank\" rel=\"noopener\" title=\"\">student loan forgiveness<\/a> under the Obama and Biden administrations resulted in billions of dollars being wiped clean from <a href=\"https:\/\/www.washingtonexaminer.com\/news\/white-house\/3191147\/biden-announces-4-billion-student-loans-forgiveness-election\/\" target=\"_blank\" rel=\"noopener\" title=\"\">borrowers&rsquo; records<\/a>, according to a review by the Government Accountability Office.&nbsp;<\/p>\n<div class=\"article-paywall\">\n<p>The <a href=\"https:\/\/www.washingtonexaminer.com\/tag\/department-of-education\/\" target=\"_blank\" rel=\"noopener\" title=\"\">Department of Education<\/a> has forgiven a cumulative total of $17.2 billion in federal student loans as of April 30, 2024, according to the report. A majority of those loans were discharged during the Obama and Biden administrations due to a change in federal regulations stemming from an uptick in applications beginning in 2015.&nbsp;<\/p>\n<p>&ldquo;When all you&rsquo;ve got is a hammer, everything looks like a nail,&rdquo; Rep. Virginia Foxx (R-NC), chairwoman of the House Committee on Education and the Workforce, told the <em>Washington Examiner. <\/em>For years, Democrat administrations have used illegal interpretations of the borrower defense law and other <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/bidens-student-loan-forgiveness-plan-faces-another-obstacle-congress\/\" title=\"Biden&#039;s student loan forgiveness plan faces another obstacle: Congress\">student loan schemes<\/a> as tools to give the far left what it wants. Now, we&rsquo;ve got the numbers to confirm it.&rdquo;&nbsp;<\/p>\n<p>Foxx decried the report&rsquo;s findings, accusing the two Democratic presidents of engaging in &ldquo;dramatic government overreach&rdquo; and &ldquo;complete disrespect&rdquo; toward taxpayers.<\/p>\n<p>Republicans have often criticized efforts to forgive student loans, arguing that they increase <a href=\"https:\/\/www.washingtonexaminer.com\/tag\/taxpayers\" target=\"_blank\" rel=\"noopener\" title=\"\">taxpayer<\/a> costs and are unfair to those who have already paid off their student loans and would not benefit from those programs. Others have argued that canceling loan debt would exacerbate the nation&rsquo;s debt and deficit.<\/p>\n<p>Since its inception, the Education Department has received 888,430 applications from 762,180 borrowers, according to the report. Of those, only 1% were denied while 47% were approved through individual adjudication. Another 23% were closed and nearly 50% remain pending as of April 30.&nbsp;&nbsp;<\/p>\n<p>Borrowers may qualify for federal loan relief under the Student Loan Reform Act if their <a href=\"https:\/\/www.washingtonexaminer.com\/tag\/college\/\" target=\"_blank\" rel=\"noopener\" title=\"\">colleges<\/a> engage in certain types of misconduct, such as misrepresenting information about employment prospects for graduates. The law was enacted in 1993, and borrower defense regulations were first implemented in 1995, and they remained in effect for 20 years.&nbsp;<\/p>\n<p>Those regulations required borrowers to prove &ldquo;any act or omission of the&nbsp; school attended by the student that would give rise to a cause of action under applicable [s]tate law.&rdquo; During the first 20 years of the program, only 59 people applied to have their student loans forgiven, according to the report.&nbsp;<\/p>\n<p>However, the Education Department saw a surge of applicants in 2015 after the closure of Corinthian Colleges, the largest for-profit college shutdown in U.S. history that kicked about 16,000 students out of school.&nbsp;<\/p>\n<p>That prompted the Obama administration to implement new regulations as a way to &ldquo;to clarify and streamline the borrower defense process,&rdquo; according to the GAO report. The department then stopped processing loan applications &ldquo;at various times&rdquo; in 2017 under the <a href=\"https:\/\/www.washingtonexaminer.com\/tag\/Trump-administration\" target=\"_blank\" rel=\"noopener\" title=\"\">Trump administration<\/a> to conduct reviews of the process or due to litigation.&nbsp;<\/p>\n<p>New federal regulations were established in 2019 that required the borrower to show financial harm, noting that &ldquo;the act of taking out a Direct Loan does not qualify,&rdquo; according to the report.&nbsp;<\/p>\n<p>Litigation over the loan forgiveness process continued throughout 2022, eventually leading to the Education Department issuing final regulations in November 2022 that established a new federal standard that would apply to all federal applications pending on or submitted after July 1, 2023.&nbsp;<\/p>\n<p>Those regulations were scheduled to take effect on July 1, 2023, but remain unimplemented due to ongoing <a href=\"https:\/\/www.washingtonexaminer.com\/tag\/lawsuit\/\" target=\"_blank\" rel=\"noopener\" title=\"\">litigation<\/a>.&nbsp;<\/p>\n<p><a href=\"https:\/\/www.washingtonexaminer.com\" target=\"_blank\" rel=\"noopener\" title=\"\"><strong><\/strong><\/a><\/p>\n<p>The GAO report did not include any recommendations for the Education Department, although the agency did share its findings with the department. However, the department responded to the &ldquo;comparatively low&rdquo; number of denied claims, noting the department has &ldquo;built a thorough, fair, and consistent process to review claims.&rdquo;<\/p>\n<p>&ldquo;The number of approvals in GAO&rsquo;s draft report reflects work done starting in 2015 (almost a decade ago), while the number of denials almost entirely reflects decisions based upon reviews done after the Department established its current processes,&rdquo; Dennis Johnson, director of strategy and performance for <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/new-biden-immigration-orders-seek-to-reverse-trumps-policies-streamline-naturalization-process\/\" title=\"New Biden Immigration Orders Seek To Reverse Trump\u2019s Policies, Streamline Naturalization Process\">federal student aid<\/a>, wrote in a letter to GAO that was included in the report. &ldquo;We will continue to review claims and approve those that are meritorious and deny those that are not.&rdquo;<\/p>\n<\/div>\n<p> <script data-cfasync=\"false\" src=\"http:\/\/www.washingtonexaminer.com\/cdn-cgi\/scripts\/5c5dd728\/cloudflare-static\/email-decode.min.js\"><\/script><script>!function(){var g=window;g.googletag=g.googletag||{},g.googletag.cmd=g.googletag.cmd||[],g.googletag.cmd.push(function(){g.googletag.pubads().setTargeting(\"has-featured-video\",\"true\")})}();<\/script><script>var _bp=_bp||[];_bp.push({\"div\":\"Brid_1843689\",\"obj\":{\"id\":\"27789\",\"width\":\"1280\",\"height\":\"720\",\"stickyDirection\":\"below\",\"video\":\"1843689\"}});<\/script><script defer src=\"https:\/\/services.brid.tv\/player\/build\/brid.min.js\"><\/script><\/div>\n<div class=\"tdb-block-inner td-fix-index\"><\/div>\n<div class=\"tdb-block-inner td-fix-index\"><\/div>\n<p><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Obama and Biden&#8217;s policies led to billions in student loan forgiveness, a review shows<\/p>\n","protected":false},"author":2640,"featured_media":2359133,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"https:\/\/www.washingtonexaminer.com\/wp-content\/uploads\/2024\/07\/Joe-Biden-student-loans.webp","fifu_image_alt":"","footnotes":""},"categories":[538],"tags":[3620,5315,7289,34238],"class_list":["post-2359132","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-washington-examiner","tag-biden","tag-obama","tag-review","tag-student-loan-forgiveness"],"fifu_image_url":"https:\/\/www.washingtonexaminer.com\/wp-content\/uploads\/2024\/07\/Joe-Biden-student-loans.webp","_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2359132","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/2640"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=2359132"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2359132\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/2359133"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=2359132"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=2359132"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=2359132"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}