College Fix via Center Square
(The College Fix) – President Joe Biden’s $300 billion student loan bailout will benefit some of his political appointees to the U.S. Department of Education, according to a new analysis from a government watchdog.
At least some of these appointees may have helped craft policy for their roles in the administration, according to government watchdog officials who told The College Fix.
Tom Jones, founder of the American Accountability Foundation, told The Fix that there is a clear conflict of interest among DOE staff who helped formulate the proposal.
In an email to The Fix, Jones said, “The fact that Department of Education officials who could personally benefit from the student loan relief are the same people who create it is a conflict of interest. and is unacceptable,” he said. “The president and the secretary of education should have excluded from the draft those who are eligible for relief.”
According to a government oversight agency report, “The Department of Education’s new political staff could make personal gains of up to $512,646 on the principal balance of forgiven student loans if $10,000 in federal loans were forgiven. can be obtained and may be exempt from paying interest.”
The report notes that more than 40 DOE staff will benefit from the proposal, including Melanie Müntzer and Jennifer Micholy. These her two chiefs of staff, in total, could make him over $40,000.
The AAF also reports that the windfall for DOE employees could be even greater if the proposal is expanded to cover private loans.
“Staff could benefit even more if the debt forgiveness was extended beyond $10,000 and extended to cover private loans,” the report said. Loan debt is huge, with 41 assessed staff members having student loan debt totaling between $2,820,061 and $6,500,000,” the AAF reported.
The AAF founder also explained his belief that the DOE staff’s personal circumstances played a role in developing the student loan cancellation policy.
“The people who drafted this policy see the problem through the lens of the young people who live in Washington, DC. Mr Jones said. “Of course they support policies that reduce monthly bills. would have been
Fix contacted several DOE employees with student loan debt listed in the AAF report. The survey asked them to confirm the details of the report and what comments they made about personally benefiting from the policies they promote.
A DOE spokesperson responded on their behalf and referred The Fix to a departmental memo titled “Secretary’s Legal Authority for Debt Cancellation.”
However, the spokesperson would not comment further on the staff canceling the loan.