Rep. Virginia Foxx Criticizes Education Secretary for Blocking Congressional Subpoenas on Student Loan Oversight

  • by:
  • Source: Wayne Dupree
  • 09/22/2024
White House interference with legally mandated congressional subpoenas is off-limits, declared Representative Virginia Foxx of North Carolina on Friday. The Republican, who is vying for her 11th term in Congress, criticized Education Secretary Miguel Cardona for his "constant" attempts to obstruct the operations of the U.S. House Committee on Education & the Workforce, which she chairs.

The committee has issued subpoenas to five student loan servicing companies, while Cardona's department claims it possesses the legal right to vet and approve materials before they are submitted to the committee, according to a statement.

In a letter addressed to Cardona, Foxx stated, “Your department has persistently tried to hinder our committee’s ability to timely receive documents and communications from these servicers. This not only hampers our oversight capabilities but also disregards a previous request from August 14, 2024, for information regarding when your department plans to implement new regulations for additional student loan forgiveness.”

The letter also mentions that Lisa Brown, serving as the legal advisor for the Education Department on September 5th, indicated in her correspondence that any response from the loan servicers requires prior authorization by the department's contracting officer based on contractual obligations. However, Foxx argued that such contractual stipulations cannot supersede Article I of the United States Constitution.

The committee has since received some of the requested documents and participated in three conference calls with representatives from both the committee and the Education Department staff. On July 31st, Foxx openly criticized an initiative by President Biden’s administration that involved sending emails about debt relief to student loan borrowers; she claimed this was an unprecedented move across administrations of both parties concerning federal student aid management by preemptively enrolling individuals into a yet non-existent government program.

Additionally, Foxx inquired with Cardona on August 14th whether any regulations related to student loan repayment or debt relief announced in the Federal Register would be delayed until after a mandatory 30-day period post-publication within President Biden's current term.

Subpoenas were sent out on August 29th to various entities including Missouri Higher Education Loan Authority (MOHELA), Nelnet Servicing LLC., Maximus (operating as Aidvantage), Edfinancial Services, and Central Research Inc., culminating in Foxx’s stern admonition that all requested documents from these servicers must be handed over to the committee by noon on Tuesday.

 

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