Betsy DeVos’ Plan To DOOM Students Just Took An Unexpected Turn

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Donald Trump’s appointed Secretary of Education, Betsy DeVos, doomed American students in what could be the most destructive decision the Trump admin has made yet.

Secretary of Education Betsy DeVos reversed a rule put in place by former President Barack Obama. The rule protected students from being charged unfair interest fees so long as the individual taking out the loan shows diligence in paying back the borrowed money

Occupy Democrats reports:

However, the debt collectors who stand to make millions by hiking up fees say they are going to ignore DeVos’s guidance and continue to treat students who promise to pay off the loans in a reasonable period of time fairly.

“Many student loan borrowers already have a difficult time managing their loan obligations,” James Patterson, CEO of the Texas guaranty agency told Bloomberg. “Adding more fees does not help their situation.”

The 26 loan companies that act as debt collectors for Federal Family Education Loans (FFEL) said over the past week they will not automatically charge the default fee which is about 16 percent of the total balance owed, according to Bloomberg.

They will continue to give those drowning in student debt the Obama break as long as the debtors promise to pay up within two months or less.

That means they will help as many as 11 million debtors who combined are on the hook for about $231 million, according to federal data.

The promise not to jack up the interest is even being made by United Student Aid Funds, the company which had sued the Obama administration to try and over-turn the rule. Until 2015, United had charged the higher fees, earning about $15 million annually going back to 2007.

United Student Aid Funds had been run during the Obama years by Bill Hansen, who had been Deputy Undersecretary of Eduction under George W. Bush.

At the time DeVos took over Hansen’s son Taylor, a former for-profit college lobbyist, was employed at the Education Department as one of DeVos’s advisors. Shortly after she reversed the Obama rule on excessive fees, he quit and left to go back into private industry.

Hansen and DeVos would not comment on why he left, but consumer advocate and Senator Elizabeth Warren (D-Mass) said: “There’s no question” that Taylor Hansen’s family ties posed a conflict of interest.

The reason Hansen’s old company has reversed course on the higher fees for delinquent borrowers is that it was sold and now belongs to Great Lakes Higher Education Corp., which says it will continue to follow the Obama rules.

Student debt is one of the largest issues that plagues are country today. President Obama clearly understood this and took action in protecting America’s scholars. However, we are stuck with the destructive Trump administration, and they will continue to undermine the American people until Trump is voted out in 2020.

It is clear Trump and DeVos have the best interests of businesses and corporations in mind rather the the average American citizen. It’s comforting some businesses show sympathy for those trapped in their debt, but life will be much more difficult for them if DeVos gets her way.



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