REPORT: The Trump Administration Has Saved Taxpayers a BILLION Dollars in Student Loan Fraud

 

Amid the national crackdown on fraud, the Trump Education Department is reporting that they have saved American taxpayers a billion dollars in student loan fraud.

It’s almost a shame that the Trump administration is trying to shut down the Department of Education because Linda McMahon has been one of rhe best education secretaries ever. 

The department notes that a significant amount of this fraud was more or less enabled by the Joe Biden administration, naturally.

FOX News reports:

Trump admin saves taxpayers $1 billion in fraud crackdown of student aid programs

The Department of Education announced Thursday that it has saved American taxpayers more than $1 billion by aggressively eliminating fraud, waste, and abuse within federal student aid programs.

The department’s new report takes aim at previous policies, claiming that while citizens must present identification to board a flight or rent a car, the Biden administration had required identity verification for less than 1% of students applying for federal financial aid…

The $1 billion in savings follows a massive overhaul of the system in 2025, which included the implementation of mandatory identity verification for all first-time federal student aid applicants.

According to the department, colleges and universities across the country reported being “under siege” by highly sophisticated fraud rings, prompting requests for the Trump administration to intervene.

The Education Department put out this press release:

Victories for American Taxpayers: Eliminating Fraud, Waste, and Abuse Across Federal Student Aid Programs

The Trump Administration continues to tackle fraud, waste, and abuse across higher education programs.

American citizens have to present an ID to board a flight or rent a car, yet the Biden Administration made the executive decision to require identity verification for fewer than one percent of students applying for federal financial aid. That ill-informed decision created a prime opportunity for fraudsters to exploit the Free Application for Federal Student Aid (FAFSA®) form and steal taxpayer funds. These lax standards allowed bad actors to divert aid intended for low- and middle-income students.

Now, the Trump Administration has tightened safeguards at the U.S. Department of Education (the Department), implementing commonsense identity verification and cracking down on fraud to deliver record savings for American taxpayers.

Cracking Down on Fraud: In 2025 alone, the Trump Administration prevented more than $1 billion in student aid fraud, reversing years of mismanagement in the federal student aid programs under the Biden Administration’s failed leadership.

So much fraud has been uncovered in recent months and yet we have probably just barely scratched the surface.