Watchdog Says Omar Defaulted On Student Loans, Urges House To Garnish Salary

Democratic Rep. Ilhan Omar of Minnesota is once again facing questions over her personal financial conduct, after a government watchdog group accused her of defaulting on federal student loans while simultaneously championing nationwide loan forgiveness in Congress.

The American Accountability Foundation (AAF) issued a formal letter to House Speaker Mike Johnson on Friday, alleging that Omar — who earns a congressional salary of $174,000 — is currently subject to collection efforts for student loans backed by the federal government.

“We are writing today to share serious concerns about abuse of office and abuse of government loans by a member of the House of Representatives, Representative Ilhan Omar,” AAF President Thomas Jones wrote.

According to AAF’s review of Omar’s financial disclosure documents, she owes between $15,001 and $50,000 in outstanding federal student loans. These loans are guaranteed by U.S. taxpayers.

“As you know, these loans are guaranteed by the United States Government and Representative Omar’s default would shift the cost of her student loans onto the U.S. taxpayer,” Jones stated. “The fact that someone making $174,000 as a Member of Congress cannot pay their student loans is unconscionable and embarrassing.”

The letter goes further, alleging that Omar has used her office to interfere with federal loan collection efforts.

“Adding insult to injury, there are credible claims that she is using her influence as a Member of Congress to bully the Department of Education into not collecting the past-due payments,” Jones wrote.

AAF says it has submitted a Freedom of Information Act request to obtain any communication between Omar and the Department of Education regarding her loans.

In an unusual proposal, the watchdog group urged Speaker Johnson to take aggressive action to protect taxpayers.

“We are calling upon you to instruct the Chief Administrative Officer of the House of Representatives to impound Representative Omar’s Congressional salary and pay it out to Nelnet, the servicer of her federal student loan, until such time as her payments are current,” the letter said.

Omar’s office has not responded to press inquiries regarding the allegations.

AAF has a record of investigating Democratic lawmakers, arguing that elected officials — particularly those influencing federal spending — must be held to high ethical standards. In this case, critics say the situation is especially troubling given Omar’s vocal support for widespread student loan cancellation. She has repeatedly cast the issue as a matter of “economic justice.”

But the foundation argues that the congresswoman’s own personal default fundamentally compromises that message.

“If you’re in default on taxpayer-backed loans and using your office to influence policy that could personally benefit you, that’s an ethical red flag,” Jones said.

This is not the first time Omar’s finances have drawn scrutiny. In 2023, the analytics firm Quiver Quantitative noted major changes in her asset disclosures over time.

“When she first filed in 2019, she didn’t disclose any assets,” the firm wrote. “Her recent filing shows assets worth up to $288,000. However, she now has up to $100,000 in credit card debt, along with up to $50,000 of existing student loan debt.”

The new allegations only add to a growing list of financial and ethical controversies that have followed Omar throughout her political career.

Whether leadership will take action remains unclear, but AAF says it intends to continue pressing the issue — and pushing for repayment — in defense of U.S. taxpayers under the current administration of President Donald J. Trump.