Feds find potential fraud in student loan repayment plans
A federal watchdog agency says thousands of student loan borrowers may be getting their monthly payments lowered by lying about income and family size.
The Government Accountability Office issued a report Thursday finding potential fraud in the Education Department’s income-driven repayment program, which adjusts borrowers’ federal loan payments based on income and family size.
Investigators found 95,100 cases in which borrowers were approved as having no income even though it appears they were earning money. The report also found 40,900 approved plans in which borrowers said they had family sizes of nine or more, including two borrowers who said they had families of 93.
The agency says the Education Department should do more to verify income and family size. Education Secretary Betsy DeVos says the department will review the program.