GOP Eliminating the Public Service Loan Forgiveness Program
What is WRONG with these people?
I don’t know why I constantly ask that question–I know what’s wrong with them. They are greedy and unethical, none too bright, and they lack both human empathy and any concept of justice. The better question is why are they this way? (There used to be a theory about punitive toilet training…)
Are you wondering what has set me off this time?
The GOP bill to reauthorize the Higher Education Act, introduced by Rep. Virginia Foxx (R-N.C.) on Friday, would eliminate the Public Service Loan Forgiveness program, which erases student debt for those who work for qualifying employers after making payments for 10 years.
God forbid we should offer people an incentive to enter into (underpaid) public service! No, we should reserve government positions for people who are able to take advantage of the opportunities–people who can use those positions to line their already-overflowing pockets.
The Washington Post reports that DeVos recently awarded her department’s debt-collection contracts to two firms, one of which she had invested in shortly before becoming Secretary of Education.
A company that once had financial ties to Education Secretary Betsy DeVos was one of two firms selected Thursday by the Education Department to help the agency collect overdue student loans. The deal could be worth hundreds of millions of dollars.
Previously, the Department has used as many as seventeen companies to collect overdue student debt. Suddenly, they need just two.
DeVos presumably divested her stake in the successful bidder as a condition of her appointment, but of course, once she leaves, she will be perfectly free to reinvest or engage in other business dealings with a company that now owes her big time.
What makes this “deal” worth hundreds of millions of dollars–and what makes me so livid–is that DeVos is methodically engaging in a process of overturning Obama-era regulations that were–by any measure–efforts to be fair to the students DOE presumably is there to serve.
It was DeVos who proposed eliminating the Public Service Loan provision. It is DeVos who has reversed the Obama Administration’s decision to forgive loan indebtedness from students who were defrauded by predatory for-profit “universities.”
CNBC took a look at some of the DeVos policy changes, noting that terminating the Public Service Loan Forgiveness program would “drastically impact public servants who have made significant financial and career decisions based on PSLF provisions.”
CNBC also reported that…
Under the Obama administration, the Department of Education was incentivized to award Federal Student Aid contracts to debt collection companies with the strongest records of helping borrowers and the lowest rates of loan defaults.
One of Education Secretary Betsy DeVos’ first major moves was to revoke this policy, making it more likely for the government to award Federal Student Aid contracts to companies that sell their services for the lowest price. These low-cost collection companies often offer riskier loans and provide less support to individuals trying to navigate the student loan maze.
Betsy DeVos is a poster child for an administration in which absolutely no one has the slightest concept of “the public good”– or, for that matter, ethical governance.