Biden administration faces backlash over congressional subpoenas

The Biden administration is facing criticism from Congress, particularly from House Education Committee Chair Virginia Foxx, regarding its handling of congressional subpoenas related to student loan servicers. Foxx has accused Education Secretary Miguel Cardona of obstructing the committee's oversight efforts by attempting to review and approve materials before they are submitted. This interference has raised concerns about the administration's commitment to transparency and accountability in managing federal student aid. The Education Committee has issued subpoenas to five student loan servicers, including Nelnet Servicing and the Missouri Higher Education Loan Authority, as part of its investigation into the administration's student debt relief initiatives. Foxx has expressed frustration over the department's failure to respond to previous inquiries and its insistence on prior approval for the loan servicers' responses, which she argues undermines the committee's constitutional authority. In a letter to Cardona, Foxx highlighted the unprecedented nature of the administration's approach to student loan management, particularly the auto-enrollment of borrowers in a program that has not yet been established. This has raised alarms about the potential implications for borrowers and the integrity of the federal student aid system. Foxx has issued a final warning to the Education Department, demanding the release of the requested documents by a specified deadline. The ongoing conflict underscores the tension between the Biden administration and congressional Republicans over student loan policies and oversight, with significant implications for future regulatory actions and the administration's relationship with Congress.