Foxx & Comer: Biden Administration Hijacking the Court System to Enact a Radical Student Loan Cancellation Agenda

Press Release

Date: May 24, 2023
Location: Washington, D.C.

"The Committee on Oversight and Accountability and the Committee on Education and the Workforce are investigating the Department of Education's ("Department") decision to discharge at least $6 billion in student loans for over 200,000 borrowers through a class action settlement in Sweet v. Cardona. The Department's handling of this case has evolved significantly over the course of two administrations, raising serious questions about the Biden administration's motivation to pursue a massive settlement that extends well beyond the relief initially sought by plaintiffs. Facts surrounding the Sweet v. Cardona litigation suggest the Biden administration may be working indirectly through the settlement to bypass lawful processes to fulfill student loan bailout promises made by the President. With this letter, we request documents and information to assist with our oversight of this massive student loan debt transfer scheme."

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"The Department's position in Sweet v. Cardona is very concerning and raises questions about whether it was improperly influenced by political considerations and conflicts of interest. Given the Supreme Court is likely to declare unlawful the Biden administration's student debt transfer scheme to discharge up to $20,000 of loans for most borrowers, the Department appears to be seeking legally dubious alternative avenues to make good on President Biden's campaign promise to cancel federal student debt. Further, we are concerned about the potential coordination between the Department and plaintiffs in Sweet v. Cardona to engineer a mutually desired outcome at the expense of taxpayers and institutions of higher education. Courts should endeavor to resolve actual controversies between truly adversarial parties, rather than serve as unwitting tools to advance a political agenda. Yet, close analysis of the parties in Sweet v. Cardona reinforces our concerns that the Biden administration is hijacking the court system to enact a radical student loan cancellation agenda."


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