https://www.bloomberg.com/news/articles/2017-04-11/devos-undoes-obama-student-loan-protections
>Education Secretary Betsy DeVos on Tuesday rolled back an Obama administration attempt to reform how student loan servicers collect debt.
>Obama issued a pair (PDF) of memorandums (PDF) last year requiring that the government’s Federal Student Aid office, which services $1.1 trillion in government-owned student loans, do more to help borrowers manage, or even discharge, their debt. But in a memorandum (PDF) to the department’s student aid office, DeVos formally withdrew the Obama memos.
>>131198
>The previous administration’s approach, DeVos said, was inconsistent and full of shortcomings. She didn’t detail how the moves fell short, and her spokesmen, Jim Bradshaw and Matthew Frendewey, didn’t respond to requests for comment.
>DeVos’s move comes a week after one of the student loan industry’s main lobbies asked for Congress’s help in delaying or substantially changing the Education Department’s loan servicing plans. In a pair of April 4 letters to leaders of the House and Senate appropriations committees, the National Council of Higher Education Resources said there were too many unanswered questions, including whether the Obama administration’s approach would be unnecessarily expensive.
>>131199
>A recent epidemic of student loan defaults and what authorities describe as systematic mistreatment of borrowers prompted the Obama administration, in its waning days, to force the FSA office to emphasize how debtors are treated, rather than maximize the amount of cash they can stump up to meet their obligations.
>Obama’s team also sought to reduce the possibility that new contracts would be given to companies that mislead or otherwise harm debtors. The current round of contracts will terminate in 2019, and among three finalists for a new contract is Navient Corp. In January, state attorneys general in Illinois and Washington, along with the U.S. Consumer Financial Protection Bureau, or CFPB, sued Navient over allegations the company abused borrowers by taking shortcuts to boost its own bottom line. Navient has denied the allegations.
>>131200
>The withdrawal of the Obama administration guidelines could make Navient a more likely contender for that contract, government officials said. Navient shares moved higher after the government released DeVos’s decision around 11:30 a.m. New York time. Navient stock ended up almost 2 percent.
>The Obama administration vision for how federal loans would be serviced almost certainly meant the feds would have to increase how much they pay loan contractors to collect monthly payments from borrowers and counsel them on repayment options. Already, the government annually spends around $800 million to collect on almost $1.1 trillion of debt. DeVos, however, made clear that her department would focus on curbing costs.
>>131201
>“We must create a student loan servicing environment that provides the highest quality customer service and increases accountability and transparency for all borrowers, while also limiting the cost to taxpayers,” DeVos said.
>With her memo, DeVos has taken control of the complex and widely derided system in which the federal government collects monthly payments from tens of millions of Americans with government-owned student loans. The CFPB said in 2015 that the manner in which student loans are collected has been marred by “widespread failures.”
>DeVos’s move “will certainly increase the likelihood of default,” said David Bergeron, a senior fellow at the Center for American Progress, a Washington think tank with close ties to Democrats. Bergeron worked under Democratic and Republican administrations over more than 30 years at the Education Department. He retired as the head of postsecondary education.
>>131203
>During Obama’s eight years in office, some 8.7 million Americans defaulted on their student loans, for a rate of one default roughly every 29 seconds.
>Former Deputy Treasury Secretary Sarah Bloom Raskin worked on student loan policy during the latter years of the Obama administration, in part over concern that borrowers’ struggles were affecting the management of U.S. debt. DeVos’s decision to reverse some of her work “with no coherent explanation or substitute” effectively means that the Trump administration is placing the welfare of loan contractors above those of student debtors, she said.
>In a statement Tuesday, Illinois Attorney General Lisa Madigan, who is suing Navient, agreed: “The Department of Education has decided it does not need to protect student loan borrowers.”
Okay, I'm tired of winning now.
Student loans are retarded. I don't want my tax dollars going towards any stupid, overpriced, spoiled little children. Not to mention that the government getting involved with education is what is driving up the cost. Pull the funding, and force colleges to be competitive. Also, no loans would weed out the bullshitters and those to lazy to work themselves through college.
>>131206
You people are so quick to judge. Trump has only been president for a couple of months, yet you people are pouncing all around him.
>>131207
>>131206
Hello angry losers! This applies to all you progressives, angry intellectuals, failed politicians, media hacks and tin pot celebrities who are still bristling about being overruled by those you clearly regard as your inferiors. Indeed, the one thing that comes through all the lamenting and teeth gnashing is a quite visceral contempt for the knowledge and intelligence of the general public. We voted for the things that are important to us, and NOT for the things that are important to YOU. It’s the same condescending backlash we see time and time again when democrats loose, and it’s the same condescending people that are behind it: people like YOU. Your bitter and abusive response to Trump winning the election makes the fact that YOU LOST almost as pleasing as the fact that WE WON.
Excellent, if you can't afford your tuition, join the workforce. College has become a 4-8 year vacation. Now it's time to pay up. Nothing's free.
>>131208
>Pull the funding, and force colleges to be competitive
Where do you think the money comes from to have world-class STEM facilities in institutions of higher education?
All those liberal arts students taking out big loans and paying big bucks for their degrees, the universities funnel a disproportionate sum to STEM facilities.
If you discouraged everyone that wasn't entering a STEM field from attempting a college education, STEM departments would have a lot less resources to train our own talent or attract foreign talent, and our country's future workforce would be a lot less competitive.
The loan system exists in the US for two reasons:
1.) encourage children trained in the US to stay in the US and contribute to US economy with the skills they learned here
2.) because we can't convince our taxpayers to foot the bill, so we do this roundabout way.
If you force universities to be competitive, then countries there are plenty of countries where children have the benefit of taxpayer funding of higher learning and they're going to be a lot more competitive than we are.
>>131215
>and paying
but
>>131215
*force our universities to be competitive on their own
>>131215
>encourage students trained in the US to stay
The vast majority do and still would without our current loan system. We have some of the best organizations and social mobility in the world. There is a reason why the top scoring Chinese students come to the US to study and it sure is hell not our loan structure.
>we can't convince tax payers to foot the bill
And there in lies the problem. You need to assure the people who are paying for your education that you are worth their investment. This can be done through some form of rigorous entrance and follow up exams, or limiting the scope of programs which are funded. As a tax payer I have no problems funding a 3.0 student in chemical engineering, but I sure as hell do not want to pay for a 3.0 in psych or underwater basket weaving.
>other countries fund their higher learning
And they also implement a severe meritocracy in order to get access to this free tuition. One of my roommates is an Austrian and he was talking about how only the best of the best are considered and if you fall behind you are removed. I can also guarantee they will not apply this to foreigners looking for a free ride. Why would they? I don't think a person from Spain should get a free ride payed for by US tax payers and I can be pretty safe to assume they would be opposed to the other way around.
>>131214
I, too, love sucking the dicks of our jewish masters, fellow goy
>>131215
My uni's STEM department has been subsidizing the arts department for decades. They're finally cutting some funding from the arts and retards are chucking a massive tantrum over it as you'd expect.
>>131281
>b-b-but muh discipline's immeasurable benefit to society
>>131208
I agree. The governments "protections" were just wealth redistribution. Nothing to concreatley mend the student loan problem.
>>131281
>my university is retarded so naturally all of them everywhere are
>>131210
Its kind of scary that people are still bringing up the "YOU LOST WE WON" notion whenever there is something against the trump administration. Although this legislation was aimed to do something(?) there is no alternative and the only thing that will happen is students taking our more loans and footing the bill.
Although its ok and understandable you voted for trump there are going to be many things such as this that will not be for the people. There is no alternative or safety netting, except to take out more loans or join the armed forces.
>>131301
Education is an investment.
>>131305
It's because they don't actually have any argument so they just end up trying to deflect criticism with it.
>>131306
Often times a bad one, especially when you're paying 40k to learn basic info you can get on the internet for free.
>>131313
Fucking right. STEM typically does need a lot of class/lab/equipment investment as does medical. Lib arts lets be honest could largely be covered in a community college setting with mediocre instructors. But prestige and status dickwaving does get in the way of common sense as college is no longer an elite finishing school and hasn't been since the GI bill flooded the market
>>131319
Ironically, with STEM, college prestige is less of a thing then other career fields like lib arts just because of how standardized it is.
Universities need to take a step away from being all inclusive paid vacations with incredibly expensive facilities and costs - to teaching skills, testing on them, and sending you on your way.
I feel like every college, no matter how mundane, is competing for attracting boneheads to party and enjoy themselves.
>>131323
>i feel like
your blog sucks. Stick to facts and their implications instead of making sweeping generalizations on shit you're bitter about.
>>131323
They don't let you into the frat parties huh?
>>131339
I don't disagree on the general principle that the larger influx of women in higher education flooded the market, but I dispute the conditions you propose they happened under (affirmative action). Women in higher education was artificially low before the 20th century because they were generally discouraged from enrolling, especially in fields not related to education or healthcare. The gradual reduction in these barriers let the number of women in higher education normalize.
This is different from affirmative action, which sets rough quotas that may let less qualified individuals gain preferential status in the enrollment process due to their ethnicity. In education (at least within the United States) there wasn't much of a quota, it was more of a natural equalization when cultural barriers were reduced. Women do, however, benefit from affirmative action in job application (varying by company of course, though that also applies to higher education as well), but again a good part of the historical increase in women in the workforce was also part of a natural equalization by opening more fields to women.
Today affirmative action does nothing for women, as they already outperform their male peers in education (indeed it might be time for male affirmative action, or perhaps an overhaul of the education system to make it more "boy friendly") and represent a larger part of high school and college graduates.
>>131360
Prove it :^)
>>131348
The pendulum would have swing pretty far the other way for men to be deliberately given preferential treatment. Despite women becoming more prominent in universities there are still numerous scholarships set aside which exclude men. Until we see these opened to all or alternatives for men made available things won't change
>>131344
You're right. It's internal policy at the Dept. of Education but it still affects tons of people and gives that shitty lending company a chance to weasel their way back in.
>>131304
I never implied that you mentally defective knee-jerk contrarian, fucking kys.
>>131368
>>131371
Life expectancy is not equal to oppression, lab partner.
>>131372
Differences in life expectancy can be indicative of oppression though. We need to examine the reasons for why to know for sure though.
Sometimes it's fun to just watch the shit posters defend this nonsense.
>>131377
>Differences in life expectancy can be indicative of oppression though.
This is true of oppression, as in poverty. Denying a group the right to vote is oppression, but won't shorten their life expectancy. The argument that women have never been oppressed because their average life expectancy is 5 years longer than men's, shows a certain unfamiliarity with the subject.
>>131378
It's a good thing the USA doesn't do that.
>>131380
Nice blog post.
>>131384
It was more like a tweet, not a blog post. Get it together.
Only took one post past the OP for someone to defend this ridiculous nonsense. I find that humorous
>>131394
>>131360
>Women weren't oppressed
>Everything you know is based on myths
>How weird is that?
|
>>131363
>Prove it :^)
|
>>131368
>For all of human history men die sooner than women
>End of myth, fuckin idiot.
>Strawman
Typical of the underaged. You should probably learn what that buzzword means before you use it.
2/10 bait; for making me respond.
>>131399
subscribed
>A recent epidemic of student loan defaults and what authorities describe as systematic mistreatment of borrowers prompted the Obama administration, in its waning days, to force the FSA office to emphasize how debtors are treated, rather than maximize the amount of cash they can stump up to meet their obligations.
Oh boy they better get ready.
Keep it up. The rich will be the only higher educated people in the country and the poor will continue to loose. A vote for Trump was a vote for a Plutocracy. Without some sort of checks and balances with social programs the middle class will continue to degrade. The economy will continue to fail and the uneducated poor will continue lives of crime and welfare because there are not enough low wage jobs for them. Further unemployment and larger jails is not the answer. I would not mind some tax money helping the poor and educating our people. Trust me, enough of you are stupid enough. We don't need more dumb shits.
>>131408
>Governments oppress people but mostly men.
But historically in almost every government up to the modern age men had objectively more rights than women.
>but they had to go to war an sheeeit
not only was that considered a right, but war objectively affected and killed more civilians (like women) than soldiers in basically every war ever, with things like rape often being literally codified in soldier conduct.
>but men in power beat down other men
because men in power knew women had none
>>131437
Did you catch that all on your own? Where is your argument?
>>131435
anyone can learn a marketable skill, the problem is poor people fall for memes and scams more easily
>>131440
>Women are always the primary victims of war
>>131305
You can usually tell how bad Trump is doing by how often his supporters bring up Clinton, Obama or the liberals.
>>131449
College, like anything worth while it seems, has become a tool by banks to suck people into massive loans early on.
Learning a skill should be passed on, learned in apprenticeships, or developed in a trade school with no furls attached.
>>131208
>Students too poor to have college paid for by daddy need outrageous sums to get a bachelor's degree & be competitive in current job market
>Spoiled
Pick one.
Or, explain why higher education as it has existed for ~60 years triggers you so deeply.
I won't argue with your point on endless supplies of Dept. of Ed. money--it causes universities to rocket their tuition because they know they don't have to be competitive when literally anyone can borrow enough to enroll. It's made the loan service industry into a shark den.
Yes, it's universities that need to be more competitive--not students with talent and no money. The govt should re-manage how it gets involved, but you're living a fantasy if you think "govt involved with education" at all is a problem. Much less "spoiled little children."
The vast majority of those attending public universities both work and need student loans to cover costs. There are plenty of well-paying vocational jobs, yes. But there aren't nearly enough (nor will there be) for every family hoping to make it out of piss-poor living conditions before they die.
http://www.cnbc.com/2015/10/29/more-college-students-are-working-while-studying.html
-"Today, almost every college student works, but you can't work your way through college anymore," -Anthony P. Carnevale, director of the Georgetown University Center on Education and the Workforce."
"...over the past 25 years, more than 70 percent of college students have worked while attending school. And the number of working students has grown as college enrollment and tuition have increased."
-"...Indeed, seven in 10 college graduates in 2014 had student loans, with an average of $28,950...according to the Institute for College Access and Success."
Gee, it's almost like the portion of students working through college in the U.S. matches the portion graduating with some type of debt. Could there possibly be some overlap??
Inb4 "(((CNBC)))"
>>132005
I totally agree, but the US Govt. already does require that universities demonstrate that a significant portion of their graduates consistently find gainful employment soon after graduation in order to participate in federal student loan program. These protections are at stake in this deregulatory environment.
>>132055
>I won't argue with your point on endless supplies of Dept. of Ed. money--it causes universities to rocket their tuition because they know they don't have to be competitive when literally anyone can borrow enough to enroll.
>but you're living a fantasy if you think "govt involved with education" at all is a problem
That whistling noise is the sound of information going in one of your ears and coming out the other with little to no resistance.
>>132005
>College, like anything worth while it seems, has become a tool by banks to suck people into massive loans early on.
The sad fact is that without banks and loans, /most/ colleges/universities in the US would collapse into insolvency within 5 years. They are relics of an antiquated educational system that has attempted to stave off its transition/demise with huge government backed loans. It's like a constant bailout.
>but the US Govt. already does require that universities demonstrate that a significant portion of their graduates consistently find gainful employment soon after graduation in order to participate in federal student loan program. These protections are at stake in this deregulatory environment.
If these "protections" were supposedly enforced as such, most Colleges and Universities would already have had their support yanked. Instead what you see are are audits of colleges and universities being purposefully delayed for months and/or years, and constant changes to how calculations are made. Moreover it does absolutely nothing for students who can't or don't graduate and drop out of supposedly failing programs.
It's a sick fucking cycle. Additionally, when you take the debt to income based calculations they use into account, you see a connection between the reports of college students increasingly finding themselves in retail/service industry jobs and pushes for minimum wage hikes from the partisan "academia-elite" that primarily deal with retail/service type jobs.
>>132076
Yeah, and it's not sustainable. The economic principals of supply and demand / free market have been totally botched by government bailouts and propping up of "social investments".
Accountability is preferable to kicking the can until our country is effectively systemized. Like Hayek warned, social programs and gov. Meddling will reduce individual options until their are none but the states choosing. HS, Bachelor's, student loans, mediocre employment until 40 is like the norm now. It's fucking disgusting.
I don't see the problem with attempting to avoid another financial crisis.