Federal Employees Could Get A Huge Windfall From Biden’s Student Loan Bailout
John Hugh DeMastri
September 15, 2022 5:57 PM ET
Federal employees could receive thousands of dollars in refunds for student loans payments that they never made under the White House’s new student loan forgiveness program.
Jason Delisle, a senior fellow at the Urban Institute who previously worked for the U.S. Senate Committee on the Budget, said in a series of tweets that some federal employees could see a significant “bonus windfall” as a result of a technicality in President Joe Biden’s new student loan forgiveness program. If an employee had previously taken advantage of a federal relief program, where the agency they worked for paid up to $10,000 per year of student loan debt, refunds offered by the Department of Education (DOE) on payments made during the pandemic would go directly to the employee, as opposed to the agency that actually made the payment, Delisle alleges. (RELATED: Democrats Pushing College Loan Forgiveness Owe Massive Sums In Student Debt, Records Show)
The DOE’s website discussing qualification and conditions on the new student loan program states that any voluntary payments made during the pandemic on a loan that would have otherwise been forgiven will “automatically” be refunded, “even if someone else made a payment on your loan.” To qualify, borrowers must have an outstanding balance on their student loan payment.
The DOE website gives an example where a borrower, eligible for $10,000 in relief, paid $1,000 on a $10,500 balance during the pandemic. This borrower would see the remaining $9,500 discharged and receive a $500 refund.
Delisle directly references an Office of Personnel Management (OPM) report on the Federal Student Loan Repayment Program, and notes that per the program, federal employees had up to $10,000 per year in student loans repaid for them by the federal government agency that employed them. In 2018, 10,412 federal employees received a combined $78.7 million in federal relief, according to the OPM…
https://dailycaller.com/2022/09/15/fed-workers-refund-loans-not-paid/