US education department insiders warn student loan system at risk: ‘The gatekeepers are gone’

‘If this was a bank, and they fired all the quality assurance team, their regulator would have shut them down,’ an official said. Composite: The Guardian/Getty Images/Fafsa

Hundreds of firings inside the federal government’s student aid department have sparked concern among workers and student loan advocates, who warn that the student loan system is at risk.

Linda McMahon, the wrestling industry billionaire now serving as education secretary, has presented the sweeping cuts as an efficiency drive. But employees within the US Department of Education warn they set the stage for widespread fraud and abuse.