Did Biden Cover-Up Mass Student Loan Fraud Before Funneling Billions More Into Program?

United States House of Representatives - Office of Ruben Gallego, Public domain, via Wikimedia Commons
American Liberty News
- June 4, 2026
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Two key United States senators are blowing the whistle on what they claim is an illicit scheme by President Joe Biden to cover-up mass fraud in its plan to “forgive” federal student loan program, ahead of White House plans to funnel nearly half a trillion additional dollars into it.

U.S. Senators Rand Paul (R-Ky.), Ranking Member of the Senate Homeland Security and Governmental Affairs Committee, and Bill Cassidy, M.D. (R-La.), Ranking Member of the Senate Health, Education, Labor and Pensions (HELP) Committee, claim the Department of Education (ED) misused the “Controlled Unclassified Information” (CUI) designation cover-up revelations in a Government Accountability Office (GAO) report regarding potential mass fraud its previous student loan cancellation scheme.

“Despite information being withheld, the report released earlier today still showed that the Biden administration was prepared to transfer $430 billion in student loan debt onto taxpayers with little guardrails to verify borrowers’ income to determine eligibility for student debt cancelation,” reads a statement from the Senate Committee on Homeland Security and Government Affairs.

According to the Committee, “prior to the release of the report, GAO informed congressional staff that ED designated some portions of its report as Controlled Unclassified Information (CUI), preventing it from being released to the public.”

But, “after congressional staff reviewed an unamended copy of the report it was clear these changes and the CUI designation were unwarranted.”

Despite the fact there was no legal basis to cover-up the disclosures about fraud, the Biden administration’s demand “led GAO to change and even delete information that was previously included in the report.”

The senators “raised serious concerns that the Biden administration is attempting to manipulate GAO reports to prevent the release of potentially embarrassing information that could reveal a more concerning picture of the Biden administration’s irresponsible student loan schemes.”

“As members of Congress, we recognize the need to protect highly sensitive information from public release when it poses a threat to public safety or is required by statute. When there is no legitimate basis for safeguarding information, however, it is important to ensure maximum transparency for the American people,” wrote the senators. “The Executive Branch should never unnecessarily apply its own designations just to hide material from the public because it is embarrassing or difficult to explain.”

The opinions expressed in this article are those of the author and do not necessarily reflect the positions of American Liberty News.

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Donny Ferguson

Donny Ferguson is a professional fundraiser and organizational manager. Born and raised in Texas, he has lived in Washington, D.C. for 16 years. Ferguson also served as Senior Communications and Policy Adviser in the United States House of Representatives, operating one of Capitol Hill's most effective media operations.

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