Comer, Foxx, Sessions: Department of Education's Student Loan Self-Certification Opens Door to Fraud

Press Release

"We write to express our grave concerns about the Department's unannounced decision to relax the income verification requirements for federal student loan borrowers who enroll in income-driven repayment (IDR) plans. According to the website of the Office of Federal Student Aid, the Department has determined that, because of the COVID-19 pandemic and the subsequent pause in student loan repayments, a student loan borrower enrolling in IDR will not be required to provide the necessary tax documentation to verify the income on which a borrower's monthly payments are calculated.

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In light of the Oversight Committee's observations about self-certification in multiple COVID-19 pandemic relief programs, we are concerned about the extent to which the Department is leaving taxpayers vulnerable to waste, fraud, and abuse.

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Given the correlation between self-certification and fraud, we request a staff-level briefing no later than May 19, 2023, about the following points: (1) the Department's specific legal authority to waive income verification requirements; (2) a detailed explanation of when and why the decision to relax income verification was made; and (3) the Department's internal controls and procedures used to prevent fraud in student loan repayments."

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