Americans are told that they need to get a college education, but the cost is so high, students take out loans to pay for it, but then can’t find jobs that have salaries big enough to pay the loans off. This led to 8.7 million students defaulting on their loans. Thankfully, Obama wrote policies to help students, having the Federal Student Aid Office concentrate on helping graduates manage their debt instead of debt collection. He made it easier to repay loans by “simplifying the repayment process, better protecting borrowers, and facilitating our oversight of servicing contractors.”
But for DeVos, who never worked or managed loans, or even had to take out a loan (according to her statements to Elizabeth Warren during her confirmation hearing), is—like this administration loves to do—scrapping Obama’s policies:
Our mission in the student loan servicing procurement process is to provide high quality customer service to federal loan borrowers in a cost-efficient and effective manner. I write today to reiterate the importance of the task ahead and reaffirm the Department’s commitment to achieving its mission.
Unfortunately, this process has been subjected to a myriad of moving deadlines, changing requirements and a lack of consistent objectives. We now find ourselves in a situation where we must promptly address not only these shortcomings but also any other issues that may impede our ability to ensure borrowers do not experience deficiencies in service.
All this will do is “increase the likelihood of default, according to David Bergeron, who worked as Education Department’s head of post-secondary education for 30 years. It’s yet another choice the Trump administration has made that will make it harder for low-income and middle-class America.