Trump no longer appears sympathetic to student debtors

Posted by DanielS on Friday, 14 April 2017 02:29.

RevealNews, “Trump no longer appears sympathetic to student debtors”, by Lance Willams, 14 April 2017:

On the campaign trail, Donald Trump said he sympathized with America’s 44 million student debtors and vowed to make their burdens easier.

The federal government should not be profiteering on the interest students pay on their federal loans, candidate Trump declared. (The U.S. will reap $66 billion in profit from student loans issued between 2007 and 2012, the Government Accounting Office says.)

Trump also promised to ensure that debt loads would be limited by students’ ability to repay. Student loans shouldn’t be “an albatross” hung for life around their necks, he said.

But since the election, the president has been quiet on student debt. And two recent moves suggest the administration is headed in the opposite direction, helping the student loan industry at the expense of borrowers. 

The most recent move came Tuesday, when Education Secretary Betsy DeVos scrapped a set of rules intended to shield borrowers from some of the worst abuses of the student debt collection industry.

Today, America’s student debt load is upward of $1.3 trillion – more than the nation’s credit card debt. As an investigation by Reveal from The Center for Investigative Reporting concluded last year, student loans have become the worst kind of debt for Americans – and the best kind for banks and debt collectors.

Who’s getting rich on your student debt?

For years, student debtors have complained bitterly about collection abuses: barrages of harassing phone calls, retaliatory lawsuits, even aggressive collection campaigns targeting people whose loan payments were current.

In the waning days of the Obama administration, education officials sought to make reforms. They imposed new rules that, among other things, would make it more difficult for loan collection companies to win lucrative loan servicing contracts from the federal government if they were guilty of abusive practices.

Those were among the rules DeVos scrapped, saying they lacked “consistent objectives.” The student loan industry had been lobbying Congress on the issue, contending that the Obama rules might be unnecessarily expensive, Bloomberg News reported.

“Secretary DeVos – with the stroke of a pen – has reinstated the Wild West of student loans where servicers get to play by their own rules, and borrowers get fleeced,” Randi Weingarten, president of the American Federation of Teachers, said in a statement.

The rule change could benefit the student loan powerhouse Navient, formerly known as Sallie Mae.

Shortly before Trump took office, the federal Consumer Financial Protection Bureau sued Navient, accusing the firm of a long list of improprieties and deceptive practices in collecting and servicing some $300 billion in student loans. Illinois and Washington state also sued.

The company denied wrongdoing. The new rule change makes it less likely that Navient will lose federal loan servicing contracts, even if it is found liable in the lawsuits.

Trump also has proposed cutting $5.2 billion from the federal Pell Grants program, which has provided scholarship aid to millions of needy college students.

The proposed cuts are draconian and threaten the existence of the Pell Grant program, said Lauren Asher, president of The Institute for College Access and Success. The cuts would “push students deeper into debt,” she predicted, as students would borrow more money to make up for lost financial aid.

Contact Lance Williams at .(JavaScript must be enabled to view this email address). Follow him on Twitter: @lancewCIR.



Comments: None.



Post a comment:


Name: (required)

Email: (required but not displayed)

URL: (optional)

Note: You should copy your comment to the clipboard or paste it somewhere before submitting it, so that it will not be lost if the session times out.

Remember me


Next entry: Italy: 2,074 Seaborne African Invaders Land in One Day
Previous entry: WHY JOHNNY ROTTEN CAN GO F*** HIMSELF - corrected for the Jewish red cape and misdirection of terms

image of the day

Existential Issues

DNA Nations

Establishment Problem

Categories

Links

Endorsement not implied.

Immigration

Islamist Threat

Anti-white Media Networks

Audio/Video

Crime

Economics

Education

General

Historical Re-Evaluation

Controlled Opposition

Nationalist Political Parties

Science

Europeans in Africa

Of Note

Comments

Indian Strategy commented in entry 'The Indian/Chinese IQ puzzle continued for comments after 1000' on Tue, 12 Dec 2017 21:31. (View)

The standard accusations don't work there commented in entry '‘White Europe’: 60,000 nationalists march on Poland, call for a ‘White Europe of brotherly nations"' on Tue, 12 Dec 2017 14:40. (View)

Michael Gove commented in entry 'Post Brexit-vote roundtable: Leadership contest and the Turkish factor, Part 2.' on Tue, 12 Dec 2017 11:26. (View)

Guessedworker commented in entry 'A crisis in the custody suite – part 1' on Tue, 12 Dec 2017 05:53. (View)

Captainchaos commented in entry 'A crisis in the custody suite – part 1' on Mon, 11 Dec 2017 22:20. (View)

Morrakiu, dubious character behind Merchant Minute commented in entry 'These Are White Nationalists? What Is Behind TRS And The Alt-Right's Gushing Effusion For Trump?' on Mon, 11 Dec 2017 22:10. (View)

a clue of Islam’s Jewish origins commented in entry 'Jews Created Islam: Ideological capture as a response to constraints of Jewish ethnic exclusivism' on Mon, 11 Dec 2017 15:59. (View)

Katie Hopkins panders to Israel commented in entry ''Western man, stand up for your wives, daughters', Kate Hopkins tweet investigated as inciting hate' on Mon, 11 Dec 2017 15:28. (View)

mancinblack commented in entry 'Hungary and Slovakia Must Admit Refugees as Part of EU Relocation Program, EU Court Rules' on Mon, 11 Dec 2017 13:52. (View)

mancinblack commented in entry '"Miss Grand Myanmar", Shwe Eain Si, stripped of her title for telling truth about crisis in Rakhine' on Mon, 11 Dec 2017 12:31. (View)

mancinblack commented in entry 'Cernovich daggers and shields for the Alt-Right' on Mon, 11 Dec 2017 08:34. (View)

pennine commented in entry 'Kevin Crehan, 35, jailed for leaving bacon in front of mosque then executed by Muslims in his cell' on Mon, 11 Dec 2017 07:34. (View)

Rutgers prof in trouble for posts on Faceberg commented in entry 'Merkel and Zuckerberg are teaming up to attack you on Facebook' on Mon, 11 Dec 2017 00:00. (View)

On the Rise of Mixed-Race Britain commented in entry 'Harry engages old colored woman, threatens to adulterate Royal line's representation of 41,000 years' on Sun, 10 Dec 2017 09:00. (View)

Shamychel commented in entry '“Do you like white women? Because we have a lot of them at Baylor, and they love football players."' on Sun, 10 Dec 2017 06:11. (View)

Ukwuachu commented in entry '“Do you like white women? Because we have a lot of them at Baylor, and they love football players."' on Sun, 10 Dec 2017 05:59. (View)

Shawn commented in entry '“Do you like white women? Because we have a lot of them at Baylor, and they love football players."' on Sun, 10 Dec 2017 05:38. (View)

Chafin commented in entry '“Do you like white women? Because we have a lot of them at Baylor, and they love football players."' on Sun, 10 Dec 2017 05:05. (View)

The Nation: The Alt-Right Looks Left commented in entry 'White Left Imperative to defense, systemic health of European peoples' on Sat, 09 Dec 2017 14:35. (View)

DanielS commented in entry 'Jez on great form' on Sat, 09 Dec 2017 04:34. (View)

National-Satanist commented in entry 'Jez on great form' on Sat, 09 Dec 2017 04:23. (View)

DanielS commented in entry 'Netanyahu Concerned Race-mixing to Destroy Liberal Jews and American support' on Sat, 09 Dec 2017 01:42. (View)

Merkel seeks 390,000 Family Reunification Visas commented in entry 'EP President Schulz: Germany exists only in order to ensure the existence of the Jewish people.' on Fri, 08 Dec 2017 04:23. (View)

Flynn, "we're going to rip-up those sanctions and" commented in entry 'Evidence of Trump-Russia Collusion Already Exists, Watergate Prosecutors Say' on Thu, 07 Dec 2017 18:44. (View)

(((Lauren Southern))) commented in entry 'Hardly The Battle of Cable Street: What Berkeley Doesn't Mean' on Thu, 07 Dec 2017 18:28. (View)

mancinblack commented in entry 'EP President Schulz: Germany exists only in order to ensure the existence of the Jewish people.' on Thu, 07 Dec 2017 12:20. (View)

mancinblack commented in entry 'EP President Schulz: Germany exists only in order to ensure the existence of the Jewish people.' on Thu, 07 Dec 2017 11:34. (View)

Schulz calls for United States of Europe commented in entry 'EP President Schulz: Germany exists only in order to ensure the existence of the Jewish people.' on Thu, 07 Dec 2017 09:24. (View)

Russia likely Israeli match-maker commented in entry '"Israeli Defense Minister: 'I Prefer ISIS to Iran on Our Borders"' on Wed, 06 Dec 2017 03:10. (View)

Russia cheated at Sochi, banned at S Korea commented in entry 'N.Korean threat/capacity, shows both determinism & social construction by contrast to southern twin' on Wed, 06 Dec 2017 02:52. (View)

Lyon Christmas market cancelled by cost of terror commented in entry 'Berlin terror attack: 12 dead, 49 injured as truck ploughs into crowd at Christmas market' on Wed, 06 Dec 2017 01:22. (View)

Islamic plot to kill PM Theresa May foiled commented in entry 'Weston disbands Liberty GB in favor of backing Anne Marie Waters For Britain' on Wed, 06 Dec 2017 01:08. (View)

Cernovich daggers & shields for the alt-right commented in entry 'Cernovich seeds FireMcMaster hashtag propagated by 600 most active Russian Twitter operative handles' on Tue, 05 Dec 2017 20:22. (View)

Iceland's green feminist PM commented in entry 'Occupy Hambach forest, another step toward pervasive ecology' on Tue, 05 Dec 2017 15:17. (View)

Trump plans to move US Embassy to Jerusalem commented in entry '"Israeli Defense Minister: 'I Prefer ISIS to Iran on Our Borders"' on Tue, 05 Dec 2017 14:08. (View)

affection-tone